A creditor’s relationship with a debtor begins with the credit application.  Thus, creditors should not treat this document as a formality, but as a crucial step in learning about the borrower.  A creditor generally has certain requirements that must be met before a loan will be given or credit will be established, but many fail to look for “red flags” if these requirements are met.  Below are 7 red flags creditors should be aware of:

• client uses a post office or mailing service address
• client lives out of state or conducts no business within the state
• client is never available when the creditor calls
• borrower complains about guaranteeing the debt or the use of an attorney’s fee provision in the contract/invoices
• name and address on checks used to pay borrower’s account do not match client’s name and address
• client always pays by money order or cash
• client repeatedly pays with insufficient or post-dated checks

These are just a few items that may indicate the client could be trouble.  Ultimately, it comes down to learning as much as you can about the borrower.  If you discover information that is inconsistent or insufficient, it is important to clarify it with the borrower before the loan is made or credit is extended.

If you need legal help with collection efforts against a borrower (or several borrowers), contact Windtberg & Zdancewicz, PLC to schedule an appointment.  Our attorneys are experienced and knowledgeable in all matters related to creditor’s rights.

The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation.  We handle many types of business disputes on behalf of both creditors and debtors. Our attorneys handle cases from pre-litigation negotiations through litigation, obtaining and enforcing judgments to collect what our clients are owed.  We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases.  If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.

 

There are a variety of factors to consider when it comes to collecting credit card debt.  One important factor is the applicable statute of limitations.  The attorneys at Windtberg & Zdancewicz, PLC, are experienced and knowledgeable in assisting creditors with their credit card debt.

The statute of limitations that applies depends upon what type of account the card holder has with the creditor that issued the credit.  An open account means there is an expectation of ongoing transactions.  If the account is an open account or if there was no written contract with the card issuer, the statute of limitations may be 3 years from the date of the last transaction with the issuer of the card (A.R.S. § 12-543).  If there was a written contract between the borrower and the credit card issuer, the statute of limitations may be 6 years from the last transaction (A.R.S. § 12-548).

When an individual executes a written contract for the use of their credit card, he/she agrees to all the terms therein, including payment of the debt.  When the person fails to pay their debt, they have breached the contract and the creditor has the right to file a lawsuit against the borrower.  Once the credit card issuer is granted a money judgment for the unpaid balance on the credit card, the creditor can proceed with a garnishment to collect the amount due.  The two types of garnishment are wage garnishments and account garnishments.

If you need assistance with collecting credit card debt, the attorneys at Windtberg & Zdancewicz are ready to help.

The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation.  We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases.  If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.

 

Hopefully you have read our blog titled “3 Basic Steps of Collection Lawsuits in Arizona.”  This blog will summarize the first critical step of a collection case in Arizona, which is to file the Complaint.  The Complaint is the pleading that names the defendants and sets forth the allegations against them.  This is a very important document and it should be drafted correctly.

The Complaint should name everyone who is legally responsible to pay the creditor.  Failure to name a party in your lawsuit could be a very costly mistake.  It may bar you from collecting from that party at a later date, or it may mean you would be required to file a new lawsuit against that party.  Additionally, it is imperative that the creditor assert all the claims that it may have against the defendant(s).  Thus, if the defendant is liable to the creditor under a promissory note, guaranty, or other type of agreement, the Complaint should include every allegation of liability.

Other allegations that should be included in the Complaint if they are allowed are an award of prejudgment interest, attorney’s fees, and post-judgment interest.  The jurisdiction of your lawsuit and the terms of the contract between the parties will determine whether or not a creditor is entitled to seek these types of awards from the court.

Filing a lawsuit requires more than just filling out a simple form.  A creditor must insure that it is seeking the proper relief from all of the correct people, or it could be an expensive mistake.  Thus, it is important to retain knowledgeable and experienced legal counsel from attorneys like Marc Windtberg and Michael Zdancewicz.

The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation.  We handle many types of business disputes on behalf of both creditors and debtors.  We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases.  If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.

If you are a creditor looking to collect on various claims, it is important to retain an attorney who understands the difference between a “commercial claim” and a “retail claim.”  Following the proper procedures and the most effective methods is crucial to successfully collecting the amounts due to you.

A commercial claim arises from an obligation to pay for goods sold or leased, services rendered, or money loaned for use in the conduct of a business or profession.  These types of claims include open account, commercial leases, contract, insurance subrogation, and equipment leasing.  According to the Commercial Law League of American (CLLA), an average commercial claim is defined as $2,000.

A retail claim arises from any obligation of a consumer to pay money arising out of a transaction which is primarily for personal or household purposes, including transactions for:

• Goods
• Money
• Lease
• Financing
• Property
• Insurance
• Services rendered.

Common types of retail claims include auto loan deficiency, credit card debt, and mortgage loans.  Claims that are not retail claims are considered to be commercial claims.

If you are looking for attorneys who will strive to collect your commercial and retail claims quickly and efficiently, contact the Windtberg & Zdancewicz, PLC law firm today.

The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation.  We handle many types of business disputes on behalf of both creditors and debtors. Our attorneys handle cases from pre-litigation negotiations through litigation, obtaining and enforcing judgments to collect what our clients are owed.  We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases.  If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.

 

 

When you are dealing with borrowers who have filed for bankruptcy protection, it is important to understand the legal jargon used by the bankruptcy court.  For example, understanding the difference between “discharge” and “dismissal” is very important to your collection activity.

The goal of debtors is to obtain a discharge (elimination) of their debt.  For a creditor, a discharge of the debt means that there is no (or modified) liability for the borrower’s debts.  Thus, once your borrower has discharged the debt owed to you, it is no longer collectible by you.

In contrast, the dismissal of a bankruptcy case may be good news for creditors.  A dismissal is an indication that something has gone wrong in the borrower’s case.  Thus, the court has ended the case by dismissing it without the debtor being granted a discharge.  If the debtor does not get his debt discharged, then it remains due and owing.

These terms can easily be confused, but they have significantly different meanings.  Creditors must educate themselves about bankruptcy terms to insure that they are in compliance with the law and that they are taking advantage of being able to collect debts that are still valid.

The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation.  We are experienced in creditor’s rights in bankruptcy cases.  If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.

 

 

If you want to be successful in your collection efforts, it all begins with your credit application.  Most applications for credit include the borrower’s address, where the borrower owns property, employment and banking information.  But, is this enough?

A secret weapon that many creditors do not take advantage of is requesting the borrower’s email address.  Why is this important?  It may seem worthless because if a borrower isn’t answering your letters or telephone calls, wouldn’t they simply delete emails from you?  Using email to contact the borrower isn’t the point.  An email address is as close as a digital footprint as there is online.  Get this information before extending credit.

Almost everyone has a Facebook, LinkedIn, or other social media account.  When you search for a borrower’s name, you may get hundreds of false hits.  However, when you run a search with a specific email address, you are sure to find the correct person!

Once you find a person’s social media website, you will discover a lot of helpful information.  If the person has changed jobs since they completed the credit application, they may have listed their new employment information.  They may also make comments or give other hints on how your process server can locate them.

Adding one simple line to a credit application can allow you to discover a wealth of information about your borrower.  While people may change their address, job, or telephone number, they typically keep their email address active.

The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation.  We handle many types of business disputes on behalf of both creditors and debtors. Our attorneys handle cases from pre-litigation negotiations through litigation, obtaining and enforcing judgments to collect what our clients are owed.  We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases.  If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.

 

If you have any experience in debt collection, you are well aware that there are accounts you may never collect.  There are also accounts that you may eventually collect, but it can take a very long time.  Below are a few events that may indicate that you are far more likely to be dealing with a bad account:

• Divorce – When a couple goes through a divorce, it can be devastating financially.
• Death – When a borrower passes away, it makes collection difficult (but not impossible).  Creditors must follow the proper procedure to make a claim against the borrower’s estate.
• Addictions – If your borrower or guarantor is struggling with an addiction (substance abuse, gambling, etc), it is more likely they will attend to the addiction before dealing with the debt.  Collection efforts are likely to be ignored.
• Unemployment – A borrower who is unemployed is living day to day and unlikely to focus on paying past debts.

If you have accounts that are difficult to collect, it may be time to contact an attorney to assist you.  The attorneys at Windtberg & Zdancewicz, PLC have experience and knowledge in the best methods for collecting difficult accounts.

The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation.  We handle many types of business disputes on behalf of both creditors and debtors. Our attorneys handle cases from pre-litigation negotiations through litigation, obtaining and enforcing judgments to collect what our clients are owed.  We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases.  If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.

 

 

Many creditors assume that once an account-holder files for bankruptcy, collections must stop and the account should be written-off.  This is not necessarily true.  While the automatic stay prohibits the creditor from collection efforts while the bankruptcy is pending, there may still be a chance of recovering a portion of the money owed to you.  Afterall, one of the secondary goals of the bankruptcy process is to maximize return for creditors by reorganizing the debtor’s debts and selling any non-exempt assets to pay the creditors.

It is also important for creditors to remember that a debtor’s bankruptcy case may get dismissed, especially if the debtor filed under Chapter 13.  A dismissal is good news for a creditor because it means the debtor did not receive a discharge of debt.  Thus, the amount remains due and owing.  Once a case is dismissed, the automatic stay terminates and a creditor may commence collection efforts again.

Lastly, if you are a creditor that has lien rights against a debtor, then your lien on the debtor’s property may survive the bankruptcy discharge.  This means that while you cannot collect your debt, you may be able to enforce your lien in the event the debtor attempts a sale or refinance.  If you hold a lien against a debtor, confer with your attorney regarding what rights you have at the conclusion of the bankruptcy case.

In sum, while the automatic stay prohibits collection efforts, that doesn’t mean you should immediately throw away your judgment against the debtor or write-off the account.  It is important to have an experienced attorney evaluate your rights as soon as you receive the notice of bankruptcy.

The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation.  We represent creditors in bankruptcy cases.  If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.

 

 

Hopefully you read our blog yesterday titled “Wage Garnishments…A Powerful Tool for Creditors” for information regarding wage garnishments.  This blog focuses on non-wage garnishments, which are also sometimes referred to as account garnishments.  The most common form of non-wage garnishments is the garnishment of a judgment-debtor’s bank account.

Once a creditor has received a judgment against the debtor, the creditor can serve a garnishee (bank or other property holder) with notice of the garnishment.  The judgment debtor receives notice from the garnishee instead of the judgment creditor.  The garnishee is given instructions with what amount to be deducted from the account or property being held by the garnishee.  However, there are a variety of limitations are placed on non-wage garnishments, including:

• $300.00 in a bank, savings and loan association or credit union account ($600.00 for married account holders)
• Supplemental Security Income (SSI)
• Social Security benefits (SSA)
• Temporary assistance for needy families
• Veterans’ Administration benefits (VA)
• Certain pension benefits and retirement funds
• Workers’ Compensation benefits
• Some insurance proceeds

The law also provides protections for the debtor’s household goods, clothes, tools, and a certain amount of equity in a vehicle.  Otherwise, money deposited into a bank account or being held by the garnishee is available for the creditor to garnish to pay the judgment.

The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation.  We handle many types of business disputes on behalf of both creditors and debtors. Our attorneys handle cases from pre-litigation negotiations through litigation, obtaining and enforcing judgments to collect what our clients are owed.  We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases.  If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.

 

Garnishment is a method creditors can use to collect money from a borrower after they have obtained a judgment against him/her.  A judgment must be enforced in order for you to receive payment, and a garnishment is an effective collection tactic.  There are two main types of garnishment – wage garnishments and non-wage garnishments.  This blog will focus on wage garnishments.  Please read tomorrow’s blog for information on account garnishments.

A wage garnishment occurs when a creditor serves the judgment debtor’s employer with garnishment papers which demand that the employer deduct a specified amount from all of the debtor’s paychecks until the debt is paid in full.  The employer must file an answer regarding the debtor’s employment status and information regarding his/her payment amounts and schedule.  After certain procedures are followed, the employer will deduct the amount appropriate amount from the employee’s paycheck and it is delivered to the creditor.  If your employer fails to comply with the garnishment order, they could be held liable for the debt that is due.

A wage garnishment is limited to a percentage of the employee’s “disposable earnings” under federal law.  Your disposable earnings are the amount that is remaining after the required deductions (like taxes) are taken out of your paycheck.  In Arizona, a creditor may only garnish the lesser of 25% of a debtor’s non-exempt disposable earnings or the amount of weekly earnings that exceed thirty times the hourly minimum wage.  It is important to note that sources of income such as social security benefits cannot be garnished.

If you are interested in learning more about wage garnishments, contact Windtberg & Zdancewicz, PLC today!

The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation.  We handle many types of business disputes on behalf of both creditors and debtors. Our attorneys handle cases from pre-litigation negotiations through litigation, obtaining and enforcing judgments to collect what our clients are owed.  We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases.  If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.