Collections

What do collections attorneys do?
Collection attorneys at Hatch, Little & Bunn, LLP give assistance to creditors in pursuing their debtors.

Can I collect debt owed to my company?
It depends on the type of debt that is owed to you. There are two types of debt:

• Secured Debt: A debt that has some form of property that is used as collateral to secure the debt.
  
• Unsecured Debt: A debt that doesn't have any form of property the creditor can take as collateral.
  

If a debtor goes out of business owing money and opens a new business, can a claim be filed against the new company?
If enough evidence can be developed to prove the new corporation is a continuation of the original company, it may be possible to convince the principal to pay on the old debt.

Do I need to hire a lawyer to collect debt, or can I just collect through my own resources?
There are many confusing legal procedures involved with getting a debtor to pay back a debt. A collections attorney at Hatch, Little & Bunn, LLP can help you limit your own liability and provide valuable assistance in collecting the debt. Contact us today.

How should a creditor proceed if a debtor files bankruptcy?
When an individual files bankruptcy, the automatic stay protects the debtor from all forms of collections so the first thing to do is cease any collection efforts. When you receive the notice of bankruptcy, you should file a proof of claim form promptly. The notice will indicate the deadline to do so. This form must be filed to preserve your right to share in the distribution from the bankruptcy estate.

How can a judgment be enforced?
A judgment can be enforced by taking the debtor's property in an amount equal to the total debt. Property that may be subject to a judgment could include money in a bank account, personal property owned by the debtor, a vehicle owned by the debtor, real property owned by the debtor, etc. Once judgment is granted Notice of Rights and Motion to Exempt Property are sent to the debtor giving them the opportunity to have certain property exempt from the collection of the judgment. Debtor has 20 days to respond back. Next a Writ of Execution may be issued and served by the Sheriff seeking any property that may be taken to satisfy the judgment.

If a case goes to trial, what does a creditor have to prove?
A large majority of cases settle before they ever go to trial. For those cases that do go to trial, specific issues of proof will vary from case to case depending on the issues of the case and the transaction. There are some basic matters that must be proved including the following:

• The creditor received an order from the debtor,
• The creditor and debtor agreed on a price for the merchandise /service that was to be provided,
  
• The merchandise was delivered or the service provided,
• A demand for payment has been made, and
• No payment has been received.

Can I force a foreclosure in order to secure debt?
A foreclosure is where the creditor collects its lien by forcing a sale of the debtor's real property. The creditor receives the amount of the proceeds from the sale equal to the unpaid debt, plus expenses incurred in collecting the debt. Any other creditors there may be would receive their share of the proceeds and any remaining proceeds go to the debtor. Contact an attorney at Hatch, Little & Bunn, LLP to discuss your unique situation.

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