If you are a creditor and you have accounts receivables you would like to collect, this blog will give you a general idea of what is involved in a collection lawsuit.  The most important step is selecting the best attorney to represent you.  For experienced and knowledgeable attorneys, contact Windtberg & Zdancewicz, PLC today.

Below is a summary of the basic 3 steps of a collection lawsuit in Arizona:

1. Your attorney will draft a complaint (also referred to as a “petition” in some states) and have a process server deliver it to the defendant (person owing you the money).
2. The defendant must file an answer or response to your complaint within 20 days after service of the complaint.  If the defendant fails to do so, 10 days after the default application is filed, the court may enter a default judgment in your favor.  Your attorney can then proceed with helping you collect on the judgment.
3. If the defendant files an answer, a variety of things can occur including discovery and disclosures, arbitration, and a pretrial conference.  Each of these activities moves you toward a trial.  At the trial, a judge or jury will listen to the arguments and evidence of both sides and render a judgment.  Once you have judgment in your favor, you can begin collection efforts against the defendant.

Obviously, this is a very brief description of collection lawsuits, but it gives you a general idea of what is involved.  If you would like to learn how the attorneys at Windtberg & Zdancewicz, PLC can assist you with your collection matters, contact them today to schedule an appointment!

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 mistakenly believe that when one of their debtors files a bankruptcy case, all hope of being paid is lost.  This is not necessarily true!  Depending on the type of claim you have against the debtor, it is possible for you to recover a significant amount of the debt owed to you.  The attorneys at  Windtberg & Zdancewicz, PLC have extensive experience in representing secured and unsecured creditors in pursuing their claims against bankrupt debtors.

The automatic stay immediately goes into effect when a debtor files a bankruptcy case, regardless of what chapter the case is filed under.  The stay prohibits further collection efforts by creditors while the bankruptcy case is pending.  Thus, as soon as you receive notice that the debtor has filed a case, it is imperative that you halt all debt collection efforts (including pending lawsuits).

It is important, however, for creditors to understand that the automatic stay has limitations.  For example, a creditor who meets certain criteria can file a motion for relief from the automatic stay.  The motion typically sets forth arguments for why the stay should not apply to the creditor.  Such arguments include debtor’s failure to remain current on payments, debtor’s failure to maintain adequate insurance on assets pledged as collateral, or other similar circumstances which warrant removing the stay from the creditor.  A creditor may also be able to pursue preferential or fraudulent transfer litigation within the bankruptcy case.

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.

 

 

 

 

 

 

Welcome to our blog! At Windtberg & Zdancewicz, PLC, we focus on creditor’s rights. What are creditors’ rights? The law is designed to protect creditors by providing them the ability and certain methods to collect what is owed to them. The methods available to creditors vary from state to state, but generally they include the following:

• file a lawsuit to obtain a judgment against the debtor

• place a lien on the debtor’s property or assets

• seizure and forced sale of property or assets

• garnishment of debtor’s wages or bank account

• foreclosure of real property

The rights of creditors can depend on the type of debt owed, terms of the loan, and the documentation evidencing the debt. Not only do creditors have rights against the debtor, but they also have rights against other creditors. When several creditors are attempting to collect from the same debtor, the law provides a priority amongst the competing creditors.

In short, creditors are either secured or unsecured. A secured creditor is one that the debtor pledged an asset to as collateral to support the loan. If the creditor has a “perfected” security interest (which means they established a public record of the debt), they have priority to that asset. Typically, creditors follow the rule that first in time is first in right. Unsecured creditors are the most common form of debt owed, including credit card bills and medical bills.

If you are interested in learning more about the rights of creditors, please check back and read our blog each week. Also, feel free to call Windtberg & Zdancewicz, PLC, and schedule an appointment today!