This article only addresses proofs of claim in Chapter 7 bankruptcy proceedings. The general rule for proofs of claim is:Â Proofs of claim must be filed on or before any deadline set by the bankruptcy court for filing proofs of claim. The corollary to this rule is:Â Proofs of...
I have found that there are four things in life one can always count on. They are change, death, taxes and that when entering into settlement negotiations with a debtor, at some point in the discussion the debtor will threaten to file bankruptcy. In fact, this...
A few years back when the economy was better, it was quite common for credit managers and loan officers to hold on to their delinquent accounts for up to six months trying to work out a payment plan with their debtors. In fact, it made economic...
Unfortunately fraud is extremely prevalent in business credit today. One reason for this is that in this tough economy, many businesses are so eager to make the sale, that they do not perform as thorough a credit check as they should. Another reason for an increased...
Debtors today have become extremely savvy. Many of them have dealt with enough creditors and creditor's attorneys to know exactly how to turn the situation around to their advantage. The following scenario is a typical example of this: A credit manager has an account that goes...
In the world of collections, it is quite common to run across corporate debtors that have recently been sold to new owners. This is because people like to sell businesses that owe money in an attempt to defraud creditors. They believe that if they sell...
In our collection practice we have found that many debtors try to hide their assets from creditors by putting their money into a trust. The debtors believe that as long as this money is not in their name individually, they are protected from levy by...
One of the biggest complaints I hear in the collection field, is that most attorneys focus primarily in obtaining a judgment while the focus for their creditor clients is collecting the money owed by their debtor. There is no question that this is a true statement...
One of the most frustrating aspects of collections that creditors face, is dealing with a debtor who unquestionably knows that the debt is due and owing, but who spitefully forces the creditor to proceed with costly litigation to collect their money. This type of debtor usually...
My initiation into the world of collections began back in the early 1980's when our economy was still fairly strong. In those days, the prevailing mode of thought when an account became delinquent, was that you came on like a bulldozer with your debtors and...