When Attempting to Renegotiate the Deal AGAIN Is Just Another Delay Tactic

At some point,hourglass showing time passing. it becomes apparent that the debtor’s attempts at resolution are nothing more than delay tactics.

Such is the case currently where a client placed a claim with us for collection.

Our client is an independent contractor. He and the debtor company had been working together for well over a year. Suddenly, the company became delinquent on the weekly compensation. As a remedy, the debtor company’s principal issued a series of postdated checks to our client dated six months out. The parties continued their working arrangement. Six months later, our client began depositing the post-dated checks. One by one the checks returned. Each check was unpaid due to insufficient funds and that added to the debt. Continue reading “When Attempting to Renegotiate the Deal AGAIN Is Just Another Delay Tactic”

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Fear of Enforcing Your Rights to Payment Can Put You Out of Business

Sign that reads "going out of business."It’s hard to know when to stop doing business with a non-paying client and start enforcing your rights to payment. Failure to make the decision can put you out of business.

Smart credit policies protect you from doing business with those least likely to pay. And smart collection policy designs maximize recovery on receivables. But these policies are only effective if you use them. Continue reading “Fear of Enforcing Your Rights to Payment Can Put You Out of Business”

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Joint and Several Liability Clauses Improve Debt Collection Outcomes

Photo of a contractInclude 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”

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Is Free Mediation Coming To Resolve Your NY Debt Collection Claim?

Are you interested to see if mediation would resolve your claim? If so, you will need all parties involved in the dispute to agree. Without total agreement, mediation cannot go forward. If one party does not want to mediate, you can’t mediate. This is true even if your agreement provides for mediation of all disputes.

The mediation pilot program offered by the Civil Court of the City of New York is exciting and it is FREE. For now, consumer cases seem to be all they are handling. However, the intention is to expand the program to include B2B disputes. Besides the parties’ total agreement to mediate, the recovery amount in the underlying matter must be within the jurisdictional limits of civil court, which is up to $25,000.00.

Unlike mediation through the Supreme Court, where available, New York civil court mediation is also available for a permitted matter even before filing a lawsuit. In Supreme Court, the Judge can order mediation.  In Civil Court,  the parties can decide on their own to file for mediation. They need not have an active case or a Judge assigned to the case.  One party unrepresented by counsel is sufficient to qualify the case.

The civil court emphasizes that the mediation is free for up to three hours. This makes it convenient and fast. You can potentially reach a settlement in a one- or two-hour session with a mediator. After three hours, there is a $300 hourly fee payable to the mediator. To continue, the parties must agree to pay out of pocket. Continue reading “Is Free Mediation Coming To Resolve Your NY Debt Collection Claim?”

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