Call it a sham defense, a delay tactic or an obstacle created by the non-paying customer. A general denial is a defense used by many non-paying customers in New York debt collection litigation.
Debt collection litigation most often begins by service of a summons and complaint demanding payment of monies owed which the customers had agreed to pay.
Looking to continue to delay payment, the non-payors hire counsel to defend debt collection litigation and “put in an answer” to defend the case.
A “general denial” is a very common defense that is used to delay debt collection litigation.
The non-paying party need not specify why they are denying owing the money. They can categorically deny owing money with the general denial and, the general denial does what the non-paying client wants it to do. A general denial buys the debtor more time before being forced to pay by creating an obstacle. The result, you wait longer to get paid.
Regardless of past behavior i.e.: denying the debt or responses to demands for payment, a general denial is available to all parties being sued in debt collection litigation. Using the general denial defense in debt collection litigation is not dependent upon success will be impacted.
Later on the debtor will need to substantiate their defense of a general denial (as well as any other defense).
Merely using the defense in debt collection litigation, the non-paying customer can further forestall collection of monies due and impact the speed in which you can obtain judgment and recover monies owed.
An experienced debt collection litigation attorney can flush out the sham defense(s) and knows how to handle the case(s) to move them towards judgment.
For questions or to place a debt collection claim with Frank, Frank, Goldstein & Nager, contact jnager@ffgnesqs.com, (212)-686-0100. We have the experience that pays…..
