Numbers tell a story, but you need more to succeed and win your New York debt collection case. Establishing liability between you and your delinquent customer is key. But rather than presenting the documentation to the non-paying client, you need to prove it to the court or arbitrator.
You must use your company’s legal name when filing a lawsuit, mediation, or arbitration. If you are incorporated, your name as the creditor should appear as your corporate name, including any appropriate suffix such as Corp., Ltd., Inc., LLC, PC, etc.
If you are doing business under an assumed name (“DBA”), you should also include that when filing. Adding the assumed name is especially important if your supporting documentation—bills, invoices, agreements, proposals, or other records—reference the assumed name instead of, or in addition to, your corporate name.
The court or arbitrator will carefully review the underlying documentation to ensure that the names on all records match the names of all parties listed in your legal filings, both you and your customer. The parties named in the litigation or arbitration must be the correct parties liable for the debt.
Why It’s Important to Check All Parties’ Names
If the names on the documentation differ from the names in the legal filings, as they often can, you may have some explaining to do. A good collection attorney will be able to anticipate the questions the court or arbitrator may raise and clarify the documents and business relationships in the initial pleadings.
However, even with those explanations, if the names do not match, the judgment clerk may reject your proposed default judgment because they cannot confirm that you have “established liability.” If this happens, you will need to make a formal motion to the court for an order entering judgment.
You will then need to explain to the court or arbitrator how and why the customer, either as named on the invoice or in the contract, is responsible for the debt. You will also need to clarify why your documents name a customer with a different name than the party named in the legal filings.
This explanation can be made by way of affidavit or oral testimony. Ultimately, it is up to the clerk, judge, or arbitrator to decide whether your documents and testimony are enough to establish liability and prove that the customer is indeed responsible for the debt owed to you.
As always, it’s best to be proactive. In a perfect world, you would confirm your client’s correct legal and trade names in advance, ensuring your invoices, statements of account, service tickets, and agreements all align. A skilled debt collection lawyer can advise on business practices that will maximize your ability to collect monies owed.
Looking for an attorney to handle your debt collection case? Contact Frank, Frank, Goldstein and Nager by email or call +1 (212) 686-0100. We have the experience that pays. For more debt collection news and best practices, check out our YouTube channel.
