Remote work has changed the way business is done. On your end, you might find it difficult to reach someone who can give concrete answers about payment. Or maybe documentation has been lost in the shuffle or left in an office. Work has changed in a lot of ways, but does the fact that so many New York businesses have switched to remote work affect the collectability of your collection claim?
It’s been almost two full years since New York went on pause, and many companies have either adapted to working remotely or shuttered. We’ve heard from some debtors that checks are cut on a schedule. A designated employee goes in, prints them, and mails them to the authorized signatory. That is, of course, if the employee is available to go in. If the customer closed their office and left no assets, that may be the end of your debt collection claim right there. For creditors to continue to pursue their debt collection claims while working remotely, they need access to their books and records, invoices, statements, proofs of delivery, and more. Depending on the industry, the information is still kept on paper.
Pursuing a Debt Collection Claim
Is your debt collection counsel IT savvy? It sounds silly, but trust me. Collection attorneys are notoriously behind on technology. Can your debt collection counsel handle the data in the manner you transmit it?
The courts have come a long way but still have a ways to go. Their technology has improved in that they can hold remote hearings. In the upper courts, judgments are still entered by clerks in the office. The lower courts are still working mostly with paper, especially the judgment clerks who can not work remotely. Hopefully, one day technology will improve and filings, motions, judgments, and more will become electronic. Justice is slow.
But does the fact that your customer is working from home affect the collection of your debt collection claim? It definitely can.
At no time would a marshall or sheriff enter a private residence to collect a money judgment. However, with commercial collections, an execution can be issued and the marshal or sheriff can go to a place of business. The marshal would serve the levy in person. However, now the marshal is no longer able to go to the place of business if it’s someone’s home.
That being said, you can levy on the bank account, merchant account, and more without needing to enter a private residence. We like to think that debtors are running leaner companies nowadays. Hopefully, they have more cash on hand since they are saving money on hard expenses (i.e. rent, electricity, and taxes). If they are, that means more money to satisfy your claim.
If you have a debt collection matter you need assistance collecting on, contact us at Frank, Frank, Goldstein and Nager.
