Pre-Litigation & Accounts Receivable Management Notices and Demands
Usually when the obligation has been referred to us, our client’s internal collection efforts or collection agency efforts have been unsuccessful in resolving the account. Some debtors simply ignore Client collection effort letters and phone calls.
However, when an attorney drafted Notice of Default and demand letter is sent by our offices communicating the ramifications of our Client being forced to pursue litigation and attendant cost of pre-judgment remedies such as writs of possession and writs of attachment described below which would tie up debtor business assets, accounts, capital and cause debtor or its guarantors to incur substantial disruption of their business and income should the matter proceed further.
Certain creditors recognize these facts and seek to resolve by way of a payment in full settlement. More often upon receipt of such demand, Debtors contact our office and do not dispute their default and payment obligations but request to make payments until they can to improve cash flow to resolve the obligation. In such cases, we perform independent verification of the Debtor’s claims through asset searches and investigation to verify debtor’s business operations.
In appropriate cases, it may to the creditors benefit to work with the obligor so long as their bottom line is served. In any installment payment situation, we demand that the obligor debtor agree to a Stipulation to Judgment providing that any default in the payment obligation will result in a Judgment being entered against the debtor and guarantor immediately apply to Court to enter Judgment without further litigation to contest the debt, its amount or the costs incurred (attorney’s fees and expense) to enforce the Stipulation.
The Law Offices of John A. Clinnin 