The answer could be different in an individual situation, but in commercial situations generally? The earlier the better. As soon as your ordinary, reasonable debt collection efforts have failed. Ballpark, a substantial receivable that is over 60 days late requires immediate action.
That action needs to be more than just hiring a collections agency. Those guys only have the power to annoy your debtor with unceasing phone calls and letters. They just don’t have the tools to actually collect from someone who is refusing to pay.
Don’t waste hundreds or thousands of dollars on collection agencies to collect your commercial debt. Don’t hire a run-of-the-mill lawyer who will charge you to send letters that you’ve already sent.
There are far more effective ways.
At the Law Offices of Alan M. Cohen & Associates LLC & Associates, LLC, we have effective strategies to get our clients paid. From enforcing mechanic’s liens to ex parte attachments, we apply a unique strategy to each case. Our goal is to get you paid. With over 50 years of experience, we’re very good at what we do.
What makes us so effective? Battle tactics
Before there is even a judgment against the debtor, we lay the groundwork for a successful collection. Our first step is to perform an investigation of the debtor’s financial situation. Within the limits of the law, if they have money to pay you, we will find out about it or no one could.
Once we find an asset, we seek to freeze it through a prejudgment attachment. In some cases, we can do that without notice to the debtor in what is called an “ex parte attachment.” The point is to keep the debtor from disposing of that asset until we can freeze it.
Once we have gotten the asset frozen, we immediately seek a legal judgment against your debtor. Most of the time, when we get that judgment, ka-ching! You get paid.
But if your debtor won’t relent, we won’t, either. We know how to collect judgments from recalcitrant debtors. That might involve:
- Seizing assets: We get a writ of execution from the court directing the local deputy sheriff to seize the debtor’s non-exempt assets and sell them to pay the judgment.
- Diverting income streams: If another business owes your debtor money, we can often get to that cash through a reach and apply injunction.
- Going after the owners: In some cases, the corporate structure is used to thwart creditors. We may be able to break that structure and go after the owners or executives.
If you’re dealing with any substantial delinquency, reach out right away. Get started by scheduling an appointment. Call 508-763-6604 or reach out using our online form.