Debt Collection

  1. Review the contract or agreement.

    1. Identify the parties.

      1. Is debtor a sole proprietorship? If so, then the client's claim is against the individual and the individual t/a (name of business).
      2. Is debtor a corporation?  If so, then we check the public records to determine if it's corporate charter is valid.  If so, then the client's claim is against the corporation.
      3. If the debtor is a valid corporation, is there any individual who signed the agreement as a guarantor?  If so, then the client's claim is not only against the corporation but also against the individual guarantor(s).
      4. Is debtor a partnership?  If so, then the client's claim is against each of the partners, individually, and t/a (name of the business).
      5. Is debtor an individual? If so, then the client's claim is against the individual, and the Fair Debt Collection Practices Act applies.

    2. Identify the amount of the claim.

      1. How much is owed towards principal?
      2. Does the contract provide for interest on delinquent balances? If so, what is the rate of interest, and from what date should interest be applied to principal?
      3. Is there an attorney fee provision that allows the client to demand attorney fees?  If so, what is the dollar amount that client can demand for attorney fees?

  2. Prepare a letter demanding payment in full from the debtor.

    1. If there is a response to the demand letter, then we enter into a settlement agreement and have debtor sign a promissory note with a judgment by confession clause;
    2. If there is no response to the demand letter, then we determine in what county and state to sue this particular debtor.

  3. File the lawsuit.

    1. Have debtor served with the court summons, complaint, and supporting documents;
    2. Obtain a judgment for our client; and
    3. Proceed with post-judgment collection activities.

      1. The Oral Exam Order.  An oral exam hearing is what we get when we file documents with the court asking the court to order the defendant/judgment debtor to appear in court on a date certain for the purpose of giving testimony and providing financial documents concerning debtor's assets and income information. 
      2. The Show Cause Order.  A show cause hearing is what we get when we file documents with the court advising the court that debtor failed to appear at the oral exam hearing and, therefore, asking the court to order the defendant/judgment debtor to appear in court on a date certain for the purpose of showing cause why debtor should not be found in contempt of the previous court order.
      3. The Body Attachment Order.  A body attachment is what we get when we file documents with the court advising the court that debtor failed to appear at the show cause hearing and, therefore, asking the court to order the sheriff to arrest debtor and advise debtor of a new court date at which he must appear so as to assist creditor in collection on its outstanding judgment.
      4. Wage Garnishment Order.  A wage garnishment is what we get when we file documents with the court advising it of the outstanding judgment and place of debtor's employment, asking the court to order the employer to withhold 25% of debtor's disposable income.
      5. Bank Attachment Order.  A bank attachment is what we get when we file documents with the court advising if of the outstanding judgment and debtor's bank account, asking the court to order the bank to freeze all money in debtor's bank account up to the amount of the judgment.
      6. Judgment Lien on Real Property.  A lien on real property is what we get when we file documents with the court advising it to transfer the judgment to the land records of the circuit court of the county in which debtor owns real property. 

  4. Demand! Sue! Collect!

For more information or to schedule a complimentary consultation, contact us online or call us at 301-460-4660, Monday through Friday, between the hours of 9:00 AM to 5:00 PM, Eastern Standard Time.

We look forward to serving you.