Did you know that you can use confessions of judgment to bypass New York debt collection? Sometimes, you can even bypass litigation in other states using the New York confession of judgment.
Almost every state has its own version of a confession of judgment. While there may be another name for it, it accomplishes the same goal.
Your out-of-state or in-state customer signs the confession of judgment, agreeing to the amount of damages that they owe you. The customer or third party guarantor consents to you filing the judgment immediately or waiting until payment has not been made as promised.
Confessions of judgment is an extremely powerful tool and can accomplish so much.
It shows good faith by a customer who has delayed payment but wishes to work things out. This agreement is great for clients who can negotiate an “amicable” pay arrangement with their customers. The customer understands that something must be in writing to protect the creditor and insure that they make payment as promised. Continue reading “Confessions of Judgment Bypass New York Debt Collection Litigation”
Include joint and several liability clauses in your contracts to maximize your ability to collect monies owed. So, stack the decks in your favor by going after the customer with deep pockets. Rather than chasing customers with little or no cash flow, or several customers, you will want to include a joint and several liability clause in your contract. By doing so you will strengthen your ability to pursue the customer with deeper pockets. And they would offer the greater capability to pay you monies owed.
What is joint and several liability?
Joint and several liability exists when two or more people or entities are liable with respect to the same liability.
Hence, you – the creditor – have the right to claim the execution of the obligation from any co-debtor. This relieves you from pursuing all the co-debtors. Among themselves, co-debtors are severally bound, held separately. Especially relevant is that under joint and several liability, you may pursue an obligation against any one party as if they were jointly liable. It then becomes the responsibility of the defendants to sort out their respective proportions of liability and payment. This means that if the claimant pursues one defendant and receives payment, it is the defendant’s responsibility to pursue the other debtors for a contribution to their share of the liability.
Joint and several liability allows you to purse one or more parties for the entire amount due you.
What are the benefits of including a joint and several liability clause in your contract?
There are several benefits that as a creditor you will enjoy when you include a joint and several liability clause in your contract. To name a few are: Continue reading “Joint and Several Liability Clauses Improve Debt Collection Outcomes”
Growing your company is probably your foremost priority. It might be tempting to jump into the major leagues, but doing business with the big boys can lure you into making questionable choices. Regardless of your industry, extending credit can quickly get out of hand. You can find yourself in a position of extending tens of thousands, if not hundreds of thousands of dollars, in credit without realizing it. It can happen almost overnight. If you’re not a bank or a financial lender, chances are your company cannot and should not handle the risk of nonpayment for goods and services delivered. As tempting as it might be to win a contract from one of the big boys, their outstanding credit you extend can cost you your business.
Here are just a few examples of clients who found themselves having overextended credit before seeking professional assistance with receivables. Some are still in business today; others – sadly – are not. Continue reading “Risks of Extending Credit”
A New York collection attorney can assist out-of-state or foreign law firms in domesticating out-of-state or foreign judgments in New York. We discussed steps to register or domesticate those judgments in New York in an earlier blog post.
There are issues that arise that are specific to New York. For example, New York draws a line between judgments obtained on the merits and those obtained on default. There are issues that you should be aware of that arise when attempting to register or domesticate foreign judgments in New York.
The Most Common Errors Domesticating a State or Foreign Judgment
Here are six of the most common errors made when trying to domesticate a sister state or foreign judgment: Continue reading “Issues Domesticating Foreign Judgments in New York”