Aggressive Commercial Debt Collection Plus Properly Perfected Mechanic’ Liens Can Pay Off
Barnstable … A building materials supplier sold drywall to a contractor who suddenly stopped paying. To save money, the supplier hired an online lien company to prepare and record its mechanic’s liens. When it came time to engage in aggressive commercial debt collection the supplier called me.
Upon my review of the file and the documents recorded at the registry of deeds, the online company recorded at the liens using the wrong forms on the wrong properties. The cheap online liens were worth less than what my client paid for them. I carefully reviewed the documents to make sure that a written contract or documents constituting a written contract existed to ensure that my client was not slandering a property owner’s title and opening it up for liability. I immediately researched the registry of deeds to determine the current record owner and property description.
Recognizing that I would need to amend the mechanic’s liens so as to make them effective I opted to file suit immediately. I appeared in Superior Court and obtained an attachment of the debtors’ bank accounts and real estate. I immediately sent out the deputy sheriff’s to record the real estate attachments and serve the banks with the trustee attachment.
Concurrently with my ex parte and with notice attachments, I worked on repairing the damage done by the cheap on line company by preparing and recording amended mechanic’s liens. I then gave notice by certified mail to the then record owners immediately prompting partial payments from both the debtors and the property owners.
As a result of the mechanics liens I prepared, my client collected almost $50,000.00. I collected an additional approximately $50,000.00 through my aggressive and relentless attachment of the debtors assets and by skilled settlement negotiations.
When an impasse appeared as to whether the debtor would pay the contractually obligated attorney fees, I won judgment against the debtors and persuaded the Court to award more than $30,000.00 for interest, costs and attorneys fees. When the debtors continued to fail to make payment, I sought and obtained an ex parte attachment of the debtors’ bank accounts. These post judgment attachments brought in another $15,000.00. Not surprisingly, the debtors are now making monthly payments with the remaining debt secured by the execution which I had recorded on approximately four of the debtors’ properties.
Can you say KA-CHING? My clients can.
While this does not always happen, Alan M. Cohen, an AV rated experienced commercial debt collection attorney who collects commercial debts for a living can make the difference between getting paid or taking a write off.
Call the Law Office of Alan M. Cohen LLC at 508-620-6900 for a free 30 minute consultation as to how we can help you commercial debt collection to work for you.