Debt Collection Blog

"Relentless Collection Attorneys"

Alan Cohen

Patience Can Result in Bad Debt Recovery

Massachusetts District Court – – – A supplier hired me to collect an outstanding debt. Like usual, I immediately filed suit, obtained an attachment and won judgment. Despite obtaining a judgment against the corporation and the individual guarantors, the corporation was defunct and the individual guarantors did not have the ability to make monthly payments.

I nonetheless secured the judgment and hopefully the bad debt recovery, by having the sheriff levy upon the execution, but suspend the sale of the property. I then waited to see if the debtors’ circumstances changed.

I commenced supplementary process. As a result, I was contacted by a well-regarded bankruptcy attorney who I had run into several years prior. In order to attempt to avoid filing bankruptcy, debtors counsel offered payments for over 1 year. The payment would not be secured by any attachment.

Using the skills that I’ve honed for over 31 years, I was able to persuade opposing counsel to double the amount initially offered and secure payment with a mortgage. The mortgage is preferable to an attachment in a bankruptcy proceeding because it receives more favorable treatment under the bankruptcy code.

Once again, my commercial debt collection tactics refined over years of experience fighting for my clients put my client in the payment line.

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