Obtaining a judgment is an important component of commercial debt collection, but while you’re waiting to obtain and enforce a judgment the assets may be long gone.
For this reason, asset recovery and commercial debt collection is more urgent than judgment enforcement. It requires cunning and decisive action.
Act to Secure Your Collateral
Whether it is inventory, equipment, or accounts receivable, the Brigham Law Firm routinely works to protect pledged collateral – before it’s too late.
The services provided in this area of practice include:
Prejudgment collection without litigation
Loan modification agreements
Temporary protective orders
Litigation to enforce loan agreements
Creditor’s rights in bankruptcy
These methods can permit us to:
Gain access to property for inspection and appraisal
Obtain pre-judgment writs of attachment
Secure temporary protective orders
Obtain the appointment of receivers
Draft and negotiate settlements and deeds in lieu of foreclosure
Preserve your rights against third party guarantors
Greater Leverage than a Collection Agency
As a California commercial debt collection attorney, Don Brigham offers leverage that a collection agency can’t – the ability to sue the debtor. This immediately demands their time, attention, and resources.
From the debtor’s standpoint, this imminent threat immediately moves you to the front of the line for payment consideration. Debtors are simply more responsive to these actions than a collection agency’s form letters or minimum wage collection “agents.”
Enjoy Full Application of the Law
When the law is clearly on your side, use it to the fullest extent possible. With Brigham Law as your California commercial debt collection attorney, you gain the upper hand in the recovery of your business-related debts and collateral, regardless of the state of origin.
CASE STUDY: Using Law Enforcement to Seize Hidden Assets
THE CASE: A national bank funded a $10 million loan to a construction company secured by among other assets, construction equipment.
THE CHALLENGE: The construction company defaulted on the loan. Not only that, the company officers refused to turn over the equipment or reveal its location.
OUR SOLUTION: On behalf of the bank, my firm immediately filed suit to recover both the balance of the loan and the equipment. Once filed, I obtained a prejudgment writ of attachment for the equipment. Using my investigative techniques I was able to follow the trail and successfully locate the construction equipment. Once I could positively identify the equipment, I instructed the local sheriff to seize the equipment under the authority of our writ of attachment.
THE OUTCOME: Realizing that I had already seized the construction equipment, the defendant company failed to respond to our lawsuit and a default judgment was entered in favor of my client. This allowed my client to sell the equipment at auction to pay the balance of the loan.
Pre-Judgment Enforcement: The Urgency to Monetize Collateral
While obtaining a court judgment against your borrower may be clear cut, such legal filings take time.
During that time the highest priority is preventing those in default from liquidating or moving pledged collateral.
Perishable inventory or anything that could be transported, hidden, or sold requires immediate action. This requires knowledge of when it’s appropriate to employ prejudgment strategies to protect your collateral, pending entry of a judgment.