Take a Security Interest to Improve Your Odds of Collecting

Image of a calculator and numbers to represent Security InterestDid you know you can take a security interest in goods sold on terms? This option is available as long as the customer agrees, and the goods are not owned by or pledged to another. Security interests offer an advantage if the buyer defaults, and provide you alternative debt collection remedies. By obtaining a security interest in specific collateral owned by the borrower, the creditor becomes a secured lender.

Consider how a bank or alternative lender works: if the loan is collateralized, the loan is based on the collateral of a borrower.  The borrower, in return for the loan, pledges the assets or other capital to secure the loan giving the lender a security interest in the collateral. By taking a security interest, you are technically taking a position as a secured lender.  Your customer is a borrower with an encumbered asset. A secured lender also has additional remedies in the event of non-payment by the borrower.

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How to Collect on a Judgment in New York

Photo of a gavel to represent judgment enforcement and how to collect on a judgmement.Is your New York judgment valid? If so, you will need to know how to collect on a judgment so it can get you paid. Article 52 of New York State Civil Practice Law and Rules authorizes judgment enforcement in New York. Within the statute, New York gives creditors liberal rights and remedies to collect their judgment largely without court intervention.

Once the judgment is entered, you must provide the requisite notice of entry, if required. Then you can begin to execute on the judgment bringing you closer to getting paid. Executing on the judgment gives the creditor, or their attorney, the ability to convert paper into money. This can be achieved through:

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Can I Ignore a Restraining Notice?

photo of a dollar to represent ignore a restraining notice.A judgment creditor, seeking to enforce a judgment has many ways to enforce a judgment in New York. The methods they use depend on the collection lawyer’s strategy to satisfy the judgment or, at the very least, bring the judgment debtor to the table. One way to enforce a judgment is to serve third parties with restraining notices. The attorney for the creditor serves a third party with a restraining notice to place a hold on the debtor’s accounts. The bank or other institution is then required to hold the judgment debtor’s assets. But, what happens if you ignore the restraining notice and allows the judgment debtor access to the asset or transfers the asset (money or property) to the judgment debtor. What is your liability for ignoring the restraining notice as a third-party garnishee?

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Information Subpoenas, Restraining Notices and the Role They Play in Debt Collection

image of a red letter to represent Information Subpoena Restraining NoticeHave you received an information subpoena and restraining notice related to a New York debt collection case? If you are unfamiliar with the case and this is the first notice you received, you might be concerned that being served with a subpoena means you’re getting dragged into a lawsuit. Don’t worry. Here’s some information to help you understand what information subpoenas and restraining notices are, what you’re required to do, and more.

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