Bad Debt Collected Within Weeks
A local electrical contractor, who had always paid you suddenly develops a 6,000 volt financial short circuit. Company “A,” after receiving an earlier edition of our Newsletter, calls us for its bad debt collection.
Upon investigation, we learned that the debtor had recently transferred his property into a trust. This is a trick often used to avoid creditors. Within a few days of receiving the case, we sued.
In addition to seeking and obtaining an ex parte attachment of the debtor’s bank account, we also obtained an ex parte special attachment of the debtor’s interest in that property. This stopped the debtor from selling or refinancing that property to our client’s detriment.
Eureka! The bank attachment hit a “live wire” catching more than $5,500.00. Due to the two attachments, within 90 days after suit our client recovered $8,000.00.
Example Two: Sometimes a good customer slowly becomes slow paying and eventually a non-paying deadbeat. Deciding when to turn an account over to collections is one of your hardest business decisions.
Company Y sold lumber to a customer for several months without experiencing any substantial collection problems. Slowly, the customer started developing “deadbeatitis”.
The customer made repeated promises of payment, even claiming at one time that its owner was out of the country in order to explain why it had failed to pay its bill. Company Y called Attorney Alan M. Cohen.
Within two business days, we filed suit against the deadbeat customer and its various alter-egos. We obtained ex parte attachments on all of the customer’s interests in real estate as well as freezing some money in the bank. The deadbeat was only days away from selling one of its properties. Prompt, aggressive and effective legal work resulted in our client’s receiving all monies due it, together with attorney’s fees in a few weeks.
Call Attorney Alan M. Cohen, the attorney other attorneys call to collect their bad debt.