Collecting on a debt owed by another business is not always an easy task. Those who are looking for effective and aggressive legal options to collect on outstanding debts can find the advocacy they need with the attorneys at the Law Offices of Alan M. Cohen who have helped businesses collect on outstanding debt since 1994.
What collection options are available in Massachusetts?
Creditors can pursue various attachments to lay claim to a debtor’s assets. This legal process makes it so the debtor can no longer use the asset subject to attachment, securing it for payment once the court approves. Examples can include bank attachments, real estate attachments, and keeper attachments.
What is a keeper attachment?
This option allows the creditor to lay claim to the debtor business’ cash. Massachusetts state law generally requires a creditor file an affidavit with the court to receive approval for a keeper attachment. This document outlines the facts of the situation and explains why use of this legal remedy is appropriate. The court may approve this with or without notice to the debtor. If approved with notice to the debtor, the debtor may have a chance to oppose the court’s issuance of the keeper attachment.
How does a keeper attachment work?
Once approved, a sheriff can take custody of the cash from the debtor. It is important to note that although the keeper attachment allows you to gather the cash, it does not mean you get to keep this asset. As the name applies, a keeper attachment allows the creditor to attach their interest to the asset. This essentially allows you to lay first claim on the asset if the debtor does not otherwise make good on their payment.
It is important to note that this is just one of many legal options to retain payment from a deadbeat debtor. Aggressive legal action can help to better ensure you receive the payment you are owed, but choosing the right path is imperative. The collection attorneys at the Law Offices of Alan M. Cohen & Associates LLC can review your situation and discuss your options, helping to better ensure you use the collection method that works best in your situation. Schedule an appointment by calling us at 508-763-6604 or contacting us online.