Many statistics indicate that the vast majority of judgments issued by courts in regard to outstanding debts are never collected. Essentially, a judgment is a court order requiring a person to pay back debts that the court has deemed valid. Unfortunately for creditors, this is where the court’s involvement in the matter ends unless either party requests further action. Debts incurred in the course of business have the potential to be substantial, particularly when they involve business-to-business transactions. Fortunately for businesses that have secured judgments against parties that owe them money, there are several ways in which an attorney may be able to enforce a judgment against a business debt. Some of the more commonly utilized are detailed below.
If you have unpaid business debts to collect, Weisblatt Law Firm is ready to review your case and come up with effective strategies for recovering the money owed to your business. Call (713) 666-1981 to speak with an experienced B2B debt collection attorney today.
Securing Liens on Property
Under Texas law, a creditor who has obtained a judgment may attach a judgment lien to real property owned by the debtor. “Real property” means any real estate owned by the debtor. By attaching a lien, a business-creditor can ensure that it receives a portion of the proceeds if the property is sold. To attach a lien, a creditor must file a copy of the judgment with the county clerk in the county in which the debtor owns property.
Non-Periodic Garnishment
While Texas has some of the most restrictive garnishment laws in the country in regard to consumers and wage garnishment, the assets of a business entity can often be garnished in the event of an unpaid judgment.
Weisblatt Law Firm is a solution-driven business law firm with effective strategies tailored to clients’ needs.
Seizure of Property Through a Writ of Execution
In some cases, creditors who hold judgments against their debtors may request that the court issue a Writ of Execution in order to allow the creditor to seize assets, including bank accounts or other property owned by the debtor. A writ of execution authorizes the sheriff or other appropriate official to seize property listed in the writ. Once the property is seized, it may be sold to cover the outstanding debt.
Generally speaking, a writ of execution may be filed no earlier than 30 days after a party receives a judgment against a debtor. Additionally, the writ must be sufficiently specific to provide the sheriff or other official with guidance during the seizure of property. For this reason, hiring an attorney to handle this and other debt-collection solutions is always recommended.
Statute of Limitations
Keep in mind that there is a time limit for collecting old business debts. In most cases, you have four years to initiate a lawsuit against a debtor. Once the paperwork has been filed, the clock stops. Failure to stop the clock within four years, however, leads to a loss of the legal authority to collect the debt. If you are owed a business debt that remains unpaid, act fast to preserve your right to collect on this debt. Contact an experienced B2B debt collection lawyer promptly.
Contact a Houston Business Debt Collection Attorney Today to Discuss Your Case
Collecting judgments that you have secured on unpaid business debts can be a challenging and time-consuming endeavor. Fortunately, there are often many ways that an experienced Houston business lawyer can be of assistance in matters such as these.
Don’t let uncollected business debt bog your business down. To learn how Weisblatt Law Firm can help your business collect outstanding debts, give us a call at (713) 666-1981.
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio
