Debt collection litigation is costly in time and effort for any business. Since it is so expensive, it is important to retain attorneys who make diligent efforts to collect what you are owed before filing suit. The longer an account goes unpaid, the less likely it is to be collected. However, at Klapper & Fass, we pursue commercial debtors before filing suit when possible, and our pre-litigation collection efforts are comprehensive and thorough. We send demand letters, investigate the location and assets of debtors, and pursue debtors in a concerted effort to collect short of litigation. If our commercial debt collection efforts do not result in the desired outcome, our New York trial attorneys can take your case to trial and through post-judgment proceedings.Tracking Commercial Debtors
Pre-litigation debt collection activities depend on being able to find the debtor. Without correct contact information, an account is not collectable. It is not uncommon for the principals of a business to make themselves difficult to find and serve in order to avoid paying a commercial debt. "Skip tracing" is a critical aspect of debt collection. This refers to the practice of locating individuals by using information provided with an application for credit. Our firm uses web based investigative tools such as Accurint for skip tracing as well as more traditional investigative methods to collect on outstanding debts.
Once a debtor is located, we send demand letters. At times, it is possible to negotiate a written payment plan. It may be advisable to leverage the threat of an expensive lawsuit to convince the debtor to agree to a consent judgment clause in the payment plan. This approach allows our creditor client to immediately enter a judgment with the court if a debtor misses a payment. This saves you the fees and costs associated with pursuing litigation. Once the judgment is entered, there are multiple techniques available to enforce it, including seizure of the debtor's bank account for the full sum owed, garnishment, or a lien on a piece of real estate.
If the debtor's business is being sold, being merged, or filing for bankruptcy, our lawyers can negotiate with the principals of the entity. When a sale or merger is on the horizon, the agreement controlling that process may include a reserve allowance or other provision to ensure that unsecured creditors get paid. Once a business files for bankruptcy, all debt collection efforts must cease. However, we can obtain the bankruptcy paperwork to evaluate the list of creditors and can file a proof of claim on behalf of your business.Consult a New York Attorney on the Pre-Litigation Collection Process
The New York lawyers of Klapper & Fass are familiar with the complex procedures of pre-litigation debt collection and represent Fortune 500 insurance companies, banks, equipment lenders and finance companies. We have also assisted many large and medium-sized companies in the textile, construction, transportation, credit, and other industries. Having honed strong skills in legal research and writing, we have helped shape the law in the area of creditors’ rights by representing businesses in cases that involve previously unresolved issues. Our clients come from throughout Westchester, Nassau, Suffolk, and Rockland Counties in addition to Manhattan, the Bronx, Brooklyn, Queens, and Staten Island. Extending our services well beyond New York, we have helped businesses in Massachusetts, Florida, Illinois, and other states. We accept referrals from commercial debt collection agencies. Contact us at 914.287.6466 or by completing our online form.