New York Debt Collection Lawyers

Legal Representation for Creditors in New York and Nationwide

At Klapper & Fass, we have over 60 years of combined experience in all aspects of commercial debt collection and general litigation. Founded in 1995 by attorneys Joshua H. Klapper and Daniel A. Fass, our firm represents banks, lenders, insurance companies, and members of the construction industry in both state and federal matters. If you need to pursue commercial debt collection, the New York debt collection lawyers of Klapper & Fass can put their legal knowledge to work for you. Klapper & Fass can also help you resolve other business disputes. We are proud of our carefully refined skills in negotiation, legal research, writing, pre-trial practice and procedure and trial court advocacy, which allow us to craft innovative arguments on your behalf and aggressively protect your interests during settlement negotiations, the prosecution or defense of your case and in the courtroom.

We have helped shape the law in the complex areas where we practice by obtaining favorable outcomes for clients who are confronting issues on which courts have not previously ruled or which required clarification, including establishing that a trade name is an asset that can be executed upon in post-judgment enforcement, defining the “doing business” standard of a foreign corporation that is suing in New York, and coalescing the standard for opening a default judgment in federal court. Klapper & Fass also was involved in securing a court ruling that usury is not a defense to a purchase of future credit card receivables, defining the strict endorsement standard with regard to check negotiation, and establishing that freight claims brought in state court are governed by a federal law known as the Carmack Amendment, which has strict rules for filing counterclaims.

Klapper & Fass' New York debt collection lawyers follow delinquent accounts from the demand letter stage through follow-up collection efforts and formal lawsuits. Our practice provides a high level of transparency for our clients. Each claim we handle is entered into our cloud-based claim management system which is easy to use and can be accessed by our clients at any time. Our on-line claim management system gives our clients the ability to monitor their claims and get direct email status updates. We guide our clients through the initial claim process, trial and the post-judgment stage with a persistent and diligent commitment to collect. Our partners have each worked for more than 35 years not only as trial attorneys, but also as business counselors and advisors. We believe this kind of dual, practical experience serves our clients well and helps us achieve the results our clients need and want.. Klapper & Fass proudly serves businesses in New York, New Jersey, Connecticut, Massachusetts, Florida, Texas, California, Illinois, and other states and the District of Columbia.

Commercial Debt Collection, Litigation, and Post-Judgment Enforcement

Businesses must prioritize getting paid for the work they do. A company's failure to repay its debt or loan can cause substantial damage to a creditor. Typically, collection cases are based on breaches of contract. The type of action needed to receive the money owed depends on the individual terms and conditions of the agreement and other circumstances. Commercial accounts relating to the sale of goods or services worth over $500 are covered by the Uniform Commercial Code (UCC), which has been largely adopted by New York law.

UCC § 2–725 provides the statute of limitations for efforts to collect a debt on a contract for sale. You must bring a lawsuit for a breach of this agreement within four years after you accrue the cause of action. The time starts to run when the breach occurs, regardless of whether you knew about it at the time. You should send your first demand letter well before the statute of limitations starts running.

Some debtors simply do not file an answer to the complaint that initiates a lawsuit. A debtor's failure to respond to a properly served and filed complaint can result in a default judgment being taken. However, after a default judgment has been taken or a lawsuit has been won, it is rare for a debtor to simply pay the judgment that is entered. The judgment directs the debtor to pay a specific sum, but usually it must be enforced by one of a number of different methods to actually collect the monies owed.

Under Article 52 of the New York’s Civil Practice Law and Rules, a money judgment can be enforced against any property that can be assigned or transferred by the debtor corporation, unless it is exempt from being used to satisfy a judgment. Article 12 of New York's Business Corporation Law also states that when a sheriff returns as unsatisfied an execution against a debtor corporation's property, a judgment creditor may maintain an action to get a judgment that sequesters the corporation's property so that it can be distributed.

Issues related to bankruptcy may also have an impact on this complicated field of law. For example, a New York debtor might have personally guaranteed the debt of his or her corporation. If the entity is dissolved and you have a judgment, the debtor may file for personal bankruptcy and use the homestead exemption to protect his or her home from being sold to satisfy your judgment. If no exemptions apply, however, you can potentially place a judgment lien on a debtor's real property. The lien will remain attached to a debtor’s property for 10 years even if the property changes hands.

We may also use other enforcement techniques to help recoup what you are owed, including levying on third-party creditors to obtain satisfaction of a judgment. Our New York debt collection attorneys are prepared and have commenced actions to recover assets that have been fraudulently transferred by a debtor to other persons.

Capable Legal Guidance for Business Disputes

Beyond our work in debt collection, we also serve clients in diverse areas of general commercial litigation. Some of these include real estate transactions, disputes over corporate governance, landlord-tenant controversies, and matters involving antitrust violations or unlawful business practices.

For example, a shareholder of a corporation may choose to bring a claim against its management based on a breach of fiduciary duties. This sometimes happens when a director on the entity’s board fails to disclose a conflict of interest or uses corporate assets for his or her personal gain. Since managers have a duty of loyalty, a shareholder who believes that a director’s violation of this obligation has harmed the company can bring a derivative lawsuit. These are filed on behalf of the corporation rather than the individual shareholder, and the entity receives any compensation awarded after a successful claim. There are strict procedural requirements that must be met to sustain these lawsuits, and a knowledgeable attorney can advise you on them. Similarly, these kind of disputes arise among and between members of a partnership or a limited liability company which may require court intervention.

Business disputes also often arise from breaches of contracts between entities. These are usually in the form of written documents that create rights and responsibilities for all parties involved. If circumstances change after the contract is formed, a company may wish to alter the terms of the agreement. In the realm of real estate and commercial leases, a struggling business may not be able to pay rent or uphold its other responsibilities. The landlord then can decide whether to pursue summary proceedings to evict a defaulting tenant. However, the tenant may be able to raise counterarguments, such as when the notice process is defective, or the building is unfit for use. We are familiar with this process and have advised many clients on their options.

General Corporate and Business Law

With years of experience in handling business disputes, the attorneys at Klapper & Fass have developed a keen sense of where and how conflicts arise in the business setting. We use this experience advantageously for clients that need business agreements drafted and business relationships structured, including the formation of corporations, limited liability companies and partnerships;shareholder and partnership agreements, operating agreements, non-compete and non-disclosure agreements and agreements protecting trade secrets.

Discuss Issues Affecting Your Business with a New York Attorney

The business litigation lawyers and debt collection attorneys at the New York firm of Klapper & Fass have assisted a broad range of Fortune 500 equipment lenders and finance companies, as well as large and medium-sized companies in the textile, construction, transportation, insurance, credit, public relations and advertising industries, among others. We accept referrals from debt collection agencies. Our track record demonstrates a high success rate in collecting funds that are due to our clients. Our fees are based upon flexible percentage recovery agreements or billed on an hourly basis for creditors who prefer this approach. Contact us at 914.287.6466 or via our online form. We serve clients throughout the country as well as locally, having represented creditors in Manhattan, Brooklyn, the Bronx, Queens, and Staten Island, as well as Westchester, Rockland, Orange, Dutchess, Nassau, and Suffolk Counties.