Should I Accept a Promise of Payment On an Outstanding Balance From Client’s Future Sales?

Image of two men shaking hands.What happens when a client wants to pay an outstanding balance from their future sales or services? Working with that customer had previously been profitable, but they’ve experienced cash flow issues. For those who wish to continue doing business with a customer who seems to be having difficulties, you need to know how to best position yourself to obtain payment on the aged balance as well as any future sales.

Is there an arrangement that will ensure repayment to you on an outstanding balance and provide future profit from the same customer?

Take for example a client of ours that is a chemical manufacturer. Their customer needs a resin to complete a product made especially for the automotive industry. Their customer has become a slow-paying customer and is way past the agreed-upon terms. They are, however, making weekly installment payments. Without the client’s product, the customer will not be able to fulfill future orders already secured by the automotive company. Having explained that to the resin manufacturer, with our assistance they arrived at the following arrangement: Continue reading “Should I Accept a Promise of Payment On an Outstanding Balance From Client’s Future Sales?”

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Confessions of Judgment Bypass New York Debt Collection Litigation

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”

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Issues Domesticating Foreign Judgments in New York

Gavel with documents underneathA 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”

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What’s The Time Limit To Convert An Arbitration Award To A Judgment In NY?

You only have a year to do that. Since arbitration is an expedited process, you get a relatively short period to confirm the award in New York. Confirming the arbitration award has a 12-month statute of limitations. And the clock starts ticking the date of the arbitrator’s final determination, not the date of the arbitration award.

While confirming the award sounds simple and straightforward, there can be bumps in the road. Make certain not to drive into a pothole, causing damage beyond repair that prevents you from confirming your award on time. Continue reading “What’s The Time Limit To Convert An Arbitration Award To A Judgment In NY?”

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