Get Paid: Commercial Collections of Unsecured Property

Get Paid: Commercial Collections of Unsecured Property

On Behalf of | Sep 27, 2019 | Commercial Collection

It can be hard to collect on past due accounts, especially when you’re dealing with the collection of unsecured property. Fortunately, creditors do have rights (as the right commercial collections attorney can attest)! However, it is important for you to remember that every commercial collections account is different. In other words, some procedures for collection may work in some instances and not others and adaptability and experience are key.

Here are some ways that you may be able to get paid on unsecured accounts that have gone past due.

Get an Existing Judgment Domesticated

If you have a judgment against a debtor that you’re trying to enforce and the debtor leaves the state, you’ll need to have the judgment domesticated in the other state. You’ll likely need a commercial collections attorney to help you navigate these murky waters.

Go to Court

Whether the debtor is in California or has left the state, consider taking the debtor to court. Talk with a commercial collections attorney to determine if it’s best for you to file your lawsuit in California or in the state where the debtor has gone.

File for a Prejudgment Writ of Attachment

Sometimes, people with commercial debt just don’t want to pay their debt. In order to avoid doing so, they may decide to sell off assets, take them out of the name of the business (or out of their name), or hide the assets. At that point, a judgment is nothing more than a decision made by the court that you should be paid. You can’t get paid if there are no assets to be found. To protect your ability to get paid, consider filing an application for a prejudgment writ of attachment. This writ is filed before a judgment is issued. If the court grants the writ, it makes it close to impossible for the debtor to dispose of their assets.

Garnishment on Bank Accounts

If you’re granted a judgment against the debtor for the unsecured property, you may get a writ of execution to enforce a monetary judgment. You may then be able to move forward and garnish bank accounts associated with the debtor. Just remember that you’ll have to provide proper documentation to do so.

For more information, contact experienced collections attorney Ronald P. Slates today.

Archives

FindLaw Network