It seems counterintuitive. When a business debtor writes a bad check you wouldn’t expect that it would actually be a good thing and that it could help your company collect on the debts owed to them. But that bad check opens up access to legal actions that can ensure your access to funds that can help you get paid.
Our ethical debt collection attorneys at Law Offices of Alan M. Cohen & Associates LLC are aggressive and relentless. But they are also experienced and innovative. Through collection methods available to us under Massachusetts law, our collection lawyers can turn a bounced check into cash for your company.
A bad corporate check could open the door to personal liability
Massachusetts law regarding dishonored checks, states that the recipient of a bad check can ask for payment from anyone named on the check, including the company and the person who signed the check. The person who signed the check is often a principal in the company. Essentially, this equates to a personal guarantee, without having a signed personal guarantee. While the personal liability will be limited to the amount of the bad check, we can demand payment and after the 30-day notice period, could file legal action to start a collection proceeding.
A bad corporate check can provide direct access to your debtor’s bank account
Once the 30-day notice period expires, we can file a legal action to sue the debtor for the amount due. An ex parte bank attachment, or trustee attachment asks the court to freeze your debtor’s bank accounts. Once we win a judgment on your behalf, this gives us direct access to your debtor’s money. By naming the person who wrote the bad check in the collection access, we have two means of recovering the amount of the bad check.
Consult An Experienced Massachusetts Debt Collection Lawyer
At Law Offices of Alan M. Cohen & Associates LLC, we employ ethical and innovative debt collection strategies to make sure your company gets paid the money that is owed to it. Contact our experienced legal team by calling 508-763-6604 or by sending us an inquiry through our website, and schedule a consultation appointment. We look forward to telling you more about how we can turn a bounced check into payment of the debt owed to you.