Freezing your debtor’s bank accounts always directly and immediately affects the debtor, even though some other attachments may not. A bank attachment of non-exempt assets provides an immediately liquid form of prejudgment security so that when you win, there is a source for you to immediately recover money. Sometimes, the fact that you have hired aggressive experienced Massachusetts collections attorneys can lead to settlement discussions even when the bank attachment does not catch any funds.
Reasons to Make Copies of Every Check From Your Customers:
- Accounting verification
- Indicating continuous banking changes
- Affording the collection attorney attachment targets
Once we can find the debtor’s last known bank, we can finalize the complaint, or if the complaint has been filed, seek to amend the complaint so that we can file a motion for a bank attachment. There prejudgment attachments can be sought out with notice, as well as without notice, known as ex parte bank attachments.
The first thing you need to know about ex parte bank attachments, which also pertains to attachments with notice, is that the attachment does not automatically entitle you to the money in the account. Instead, it gives you prejudgment security by having the bank hold money aside for you after you win your case. By doing this, it will be ensured that after you win the battle, you will ultimately win the war and have control over your money.
Ex Parte Bank Attachment Success Story
In this scenario, a doctor has hired a lawyer to help him with the purchase of a high-tech company. The doctor then goes on to make sporadic payments despite a promise to pay the attorney’s bill in full. With an outstanding balance of $80,000 built up, the good doctor became Dr. Deadbeat.
This attorney then consulted the Massachusetts debt collection attorneys at The Law Offices of Alan M. Cohen, LLC for help getting his money. Once we found out about his scenario, we immediately sued Dr. Deadbeat and got our motion for an ex parte bank attachment approved by the District Court. This attachment only collected a few hundred dollars, so we then sought and obtained a prejudgment attachment on Dr. Deadbeat’s house. Dr. Deadbeat predictably did not file his answer within the court-mandated timeline. The very next day that we could, we filed with the District Court a request for a default and default judgment.
Since he was a tenant by the entirety (owned the property with his spouse), we could not sell the property, but we still got the prejudgment attachment. We then filed a complaint on the judgment in the Superior Court of Massachusetts. This led to a reach and apply injunction that prevented Dr. Deadbeat from receiving any money from his practice, with the court ordering him to pay his earnings to our client.
Two months went by, and we had not received a single check for Dr. Deadbeat’s court-ordered payments. To remedy this, we scheduled a deposition of his former secretary, who would know the most about his practice. She told us that he had been putting money from his practice into his wife’s account instead of to our client, to the tune of roughly $15,000.
In a last-ditch effort to cheat his client out of the money he owed, Dr. Deadbeat filed for bankruptcy. What he didn’t know is that thanks to our knowledge of the Massachusetts Bankruptcy Code, we were then able to have his home sold and reached and applied his share to pay his creditors—our client! This put Dr. Deadbeat into quite the hole.
Dr. Deadbeat’s lawyer then offered $10,000 to be paid immediately, with another $10,000 to be paid over the next five years. We rejected this offer. Thanks to Attorney Cohen’s aggressive negotiations, Dr. Deadbeat finally agreed to cough up almost $70,000 within 60 days, proving the adage that one can run, but can’t hide!
For most innovative, aggressive, and effective business debt collections from businesses subject to Massachusetts jurisdiction, contact The Law Offices of Alan M. Cohen, LLC. Our expertise in ex parte bank attachments can work in your favor so that you collect your money when you need it. Our other services range from collections on mechanic’s liens to post-judgment collections and everything in between.
Ex parte bank attachments are just one type of attachment. Here are some other collections tools that our experienced collections attorneys may use to try to get you paid: