It’s never too late does not apply to New York commercial debt collections. Here is a list of the top six (6) reasons why it may be too late to collect your money:
1) Your customer goes out of business.
Truly out of business most likely mean there aren’t any assets which can be attached to satisfy your claim/judgment. If your debtor goes out of business and is without assets, you can’t collect.
2) You go out of business. Too many receivables without cash collection could lead to the unthinkable.
3) Debtor’s assets are secured.
Your customer is in business but all their assets are secured. The finance company has a lien on equipment, the bank has a right of offset against any funds in the customer’s account and all the receivables are assigned to a secured creditor/lender. You will need to push debtor to the point of being able to come to the table with an arrangement, no more. You do not want those with a security interest to pull the plug and put your delinquent customer out of business.
4) You are one of many creditors who have judgments against the same delinquent customer.
Unless you know of an asset no one else knows about, you need to wait in line until an asset or deny becomes available to satisfy your claim.
5) There are significant tax liens against the delinquent customer.
Tax liens have priority over your claim. If all of debtor’s assets are encumbered due to tax liens, you will not be able to collect until or if the taxes are paid.
6) Failure to pursue the claim on time.
Every type of claim has a strict timetable, a statutory period, during which time a creditor can pursue collection.
Understand the limitations you may encounter which would impede or prevent collection before it’s too late. Let us help you. Call us for a free consultation (212)-686-0100.