Debt Collection Blog

"Relentless Collection Attorneys"

Alan Cohen

A Bank had a low seven figure deficiency balance from a foreclosure

MIDDLESEX SUPERIOR COURT…. A Bank had a low seven figure deficiency balance from a foreclosure. Its foreclosure attorney did not do deficiency collections, so the Bank called us.

We immediately reviewed the extensive file and then drafted comprehensive collection suit which sought to attach the debtor’s real estate, freeze his bank accounts and reach and apply his income stream. Despite vigorous opposition from opposing counsel, we prevailed upon the Judge to allow the attachments that we sought. After over ten drafts later, a settlement agreement was reached – on our terms!

As part of the Settlement Agreement, we received in escrow hundreds of thousands of the defendant’s shares of stock, an assignment of his life insurance policy, a pledge of his stock in various businesses, a pledge of his right to receive payments under promissory notes due to him and oh yeah, a mortgage on his property here and out of state. We even obtained a limited guaranty from his wife of her interest in the home and obtained a subordination of homestead.

The debtor was put on a rigid payment schedule for a reduced amount which contained incentives for him to make early payments. When the debtor breached the settlement agreement, we filed the Agreement of Judgment for the full amount owed. We immediately exercised the pledges and began to collect for my client the monies that third parties owed to him.

Throughout this process we treated the defendant with respect and tries to work with him when he fell behind after we had filed the judgment. When he failed to respond, we liquidated his insurance policy so that our client could recover the cash value. Still, we remained in contact with the debtor trying to get him to make payment. Finally, the debtor proposed a lump sum from an out of state refinancing which our client accepted.

Some six years later, we received final payment for a total recovery of $1,000,000.00.

Unlike others, we never give up, doggedly pursuing payment on behalf of out clients. If you need an aggressive collections attorney who relentlessly pursues the collection of your unpaid receivables call 508 620-6900 or email acohen@collections-law.com today.

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