banks, financial institutions, equipment leasing companies, private equity firms, brokers, and other intermediaries in a range of transactions. Whether you’re conducting transactions that involve leasing office equipment, commercial vehicles, or industrial machinery, the experienced attorneys of Spiwak & Iezza are here to support you in your collection efforts.
Navigating equipment leasing collections requires understanding state and federal regulations surrounding repossession, breach of contract, and debt recovery. Our team of attorneys ensure that all actions comply with legal standards to protect you & your company from liability.
Effective collections often begin with well-drafted lease agreements, which should include clear terms on payment schedules, repossession rights, and asset protection. Attorneys help clients draft strong contracts that can mitigate collections challenges.
Equipment leasing collections involve recovering overdue payments on leased assets, focusing on ensuring compliance with lease terms and minimizing losses for leasing companies. Equipment collections attorneys work with clients to create strategies for timely and lawful collections.
The steps involved in recovering payments and leased assets is different in each case, but the collections process can typically involve taking actions such as:
After repossession, the asset may require appraisal, resale, or auction to maximize recovery. Our attorneys assist clients in these post-repossession processes, ensuring compliance with disposal laws and providing guidance on asset disposition.
Spiwak & Iezza, LLP represents equipment lessors & lenders and handles all aspects of defaulted leasing transactions including leasing litigation, bankruptcy litigation and workout negotiations. Within the realm of workout negotiations, we commonly prepare forbearance agreements, lease modification agreements, and stipulations for entry of judgment.
Given our decades of experience in the commercial debt collections arena, we can competently defend claims directed against the lessor and lender for defective equipment issues, usury claims, unfair business practice claims, and fraudulent actions by vendors and brokers. In addition, when applicable, we regularly pursue prejudgment remedies including writs of possession and replevin, writs of attachments, receivers, and injunctions. We are also highly adept at pursuing post judgment remedies and execution on assets of judgment debtors.
If a lessee defaults, the lessor may take action to recover missed payments, repossess the equipment, or seek damages. The specific steps depend on the terms of the lease agreement and applicable laws based on the jurisdiction of the lease.
Disputes are typically resolved through negotiation, mediation, or arbitration, depending on the terms of the lease agreement. We also proceed with litigation when that becomes our best option for collection.
In some cases, lessors may agree to modify lease terms or offer temporary payment plans. This often depends on the lessee’s payment history and the lessor’s policies, but in most cases, the agreed upon terms of the original agreement comprise the total that is sent to collections with interest upon default.
In most cases, yes. In many lease agreements, the lessee is required to maintain and return the equipment in good condition. Failure to do so may result in additional charges or penalties.
If the lease agreement is defaulted on, the equipment leasing company may reclaim the leased equipment as part of their collection efforts. This action is usually governed by the terms set in the lease agreement, which often includes provisions for recovery to secure the creditor’s interests.
The repossession timeline varies based on factors like lease terms and the responsiveness of the lessee. Some cases may be resolved in weeks, while others may take longer if legal action is needed.
A business should initiate collections as soon as a lessee defaults on a payment according to the terms outlined in the leasing contract. Prompt action helps in mitigating financial losses and maintaining cash flow.
Common challenges include locating the leased equipment, dealing with lessees in financial distress, and navigating legal constraints around repossessing and reselling the equipment. Effective communication and legal guidance are critical in addressing these issues in each case.
Get your account receivables back on track with the experienced team of collection attorneys at Spiwak & Iezza. Contact us today to schedule a case consultation.
***Disclaimer: This page has been prepared by Spiwak & Iezza, LLP for informational and educational purposes only. The content is intended to provide a general overview of the law and does not constitute specific legal advice. Viewing this page or using this site does not establish an attorney-client relationship with Spiwak & Iezza, LLP or any of its members. Additionally, because laws are subject to frequent changes, some of the information provided may no longer be current or applicable.
