Robert S. Bernstein, Esquire Bernstein-Burkley, P.C. Creditworthy News The second principal defense which a creditor can raise to a bankruptcy trustee’s preference action is known as the ordinary course of business defense. Section 547(c)(2) provides: (c) The Trustee may not avoid under this section a transfer — (2) to the extent that such transfer was […]
Robert S. Bernstein, Esquire Bernstein-Burkley, P.C. Creditworthy News Contemporaneus Exchange for New Value Previously we addressed the burden of proof placed upon a bankruptcy trustee in order to avoid a preference payment or transfer made by one of your customers 90 days before filing bankruptcy. See 11 U.S.C. Section 547(b). We ended that discussion by […]
Best Way to Place a Claim with Bernstein-Burkley, P.C. When your debtor won’t pay or breaks a deal, you want action fast. Here are the ways you can get that fast action with the Creditors’ Rights Practice at Bernstein-Burkley, P.C. If you “promise” them immediate action in response to their default, you can get it […]
Part 10: What Does This All Costs? The creditors’ rights lawyers will generally agree to a contingent collection fee (often paid by the agency). In addition to the contingent fee negotiated by the agency, attorney’s suit fees are for the work in preparing and prosecuting the lawsuit. Sometimes there is an agreement that the suit […]
Part 9: Can I Just Give Up? The ability to just walk away after turning a debt over to attorneys for legal collection depends on a few things. Legally, it depends whether the debtor has responded to the lawsuit by raising a counterclaim. If so, one can’t just fold the tent and go home, at […]
Part 8: When/How to Settle Debt Litigation It may not be obvious, but the best time to settle debt litigation is before it starts! But if that isn’t possible and litigation is the next step in turning up the heat on the debtor, then watch for every opportunity during the litigation. Before the debtor spends […]
Part 7: Lawsuit Time – Supporting Debt Litigation Once the contacts have been made, defenses (or excuses) examined, and collectability assessed, if the amount involved warrants, the lawyer will offer suit as an option to turn up the heat. The lawyer may recommend the suit option or it might just be offered as another tactic. That […]
Part 6: There are Disputes and There are Disputes. Most credit people have heard all the stories. The customer who doesn’t want to pay because they didn’t get the shipment. Or it wasn’t the right product. Or it was the wrong size. Or it wasn’t delivered in time. Or it didn’t sell. Or it was […]
Part 5: What Can the Lawyer Really Do? They can leap tall buildings at a single bound. They’re more powerful than a locomotive. While they are not superheroes and not magicians, there are things they can do (or are perceived as being able to do) that can effect legal collection when others can’t. If one […]
Part 4: What Communication Should the Client Expect? The short answer is that once you turn a debt over for legal collection, as the client, you should expect to be kept adequately informed of steps and progress, as well as risks. The longer answer depends on the agreement with the agency as to frequency and […]
Part 3: What Happens During the First Few Days After Debt Placement? Time is money. Strike while the iron is hot. The early bird gets the worm. He who hesitates is lost. There’s a pattern. The better creditors’ rights lawyers understand the pattern. Within the first day or two, there should be an analysis done […]
Part 2: How is the collection lawyer chosen? Choosing the lawyer is an art and a science. Most experienced agency personnel have relationships (or at least familiarity) with creditors’ rights lawyers in most major metropolitan areas. If they’ve been in the business any length of time, the agency person has had to find (and evaluate) […]