Though consumer debts owed to a business are often a minor matter that can easily be written off, the inability to collect upon a commercial debt can lead to a significant reduction of profit for a business. For example, one real estate developer in the building trade now is said to owe more than $100 million in debts to a number of competing creditors.
Like many that have involved themselves in the construction trade, this developer has seen his better days. The business was at one time worth $300 million. However, he has now lost most of and now has fewer than 50 full-time employees working for him.
This developer’s financial difficulties come down to more than a simple collapse of the real estate market. It likely has also come about because of not taking into consideration the need for change in the way one does business when times are hard. This individual has time and time again found himself in business-related disputes that ultimately ended in litigation. One development alone resulted in more than 100 buyers defaulting on million dollar mortgages.
Now it appears that banks are attempting to gain judgments against this individual and in turn hope that he will somehow salvage enough money to pay them back. Many of these banks likely have already obtained judgments regarding debts the developer owes them, but it will be extremely difficult for these banks to collect.
Whether it's California or any other part of the country, collection attorneys can help out in the collection of judgments by various legal remedies. This can include repossessions or writs of attachment to prevent the transferring of property to others as a means of escaping liability. There also may be other hidden assets that these attorneys can track down and bring to the attention of the courts.
It’s always possible that the above mentioned businessman can recover from his financial circumstances. Still, it is always prudent for lenders to take precautions in the event that the developer decides to default upon his obligations.
Source: The Palm Beach Post, “Dan Catalfumo, once a titan of S. Florida’s building business, faces more than $100 million in debts,” Pat Beall, Aug. 7, 2013