When you are focused on the successful operation of a company, there are many aspects of the business that must function smoothly to protect your profitability and survival. The revenue generated by delivery of your products and services to another business constitutes the lifeblood of many companies. Although you can seek the assistance of collection agencies or pursue enforcement of commercial debts on your own, an experienced Houston Business Attorney recognizes advantages that debtors attempt to exploit in litigation, which is important to neutralizing such tactics.
Leveraging the Cost of Litigation: Savvy business debtors recognize that business litigation often entails a significant cost. They understand that an initial demand letter or other correspondence threatening litigation lacks teeth unless the amount at issue exceeds the “nuisance” threshold for engaging in litigation. In other words, the anticipated recovery needs to justify the cost of pursuing a judgment and/or enforcement of the judgment. Because our law firm represents many businesses involved in collections, we have the expertise to shape our correspondence and communications, so debtor realize that we are prepared to move forward on behalf of our clients.
Creating Time Delays: Commercial debtors who are struggling to pay invoices and fend off lawsuits often recognize that business litigation offers many opportunities to stall and delay payment. Since the litigation of a lawsuit can last a year or longer, debtors might use litigation tools and tactics designed to slow the disposition of the case. Some of the strategies that might be used by business debtors include:
- Evading service of process
- Engaging in wasteful discovery practices and motions
- Requesting excessive continuances
- Demanding the deposition of witnesses
- Need for validating of the debt
These tactics can delay a judgment and provide the debtor with the luxury of handling the past due obligation on terms favorable to the debtor. These strategies also are used to probe your policy and resolve in terms of litigation. Without knowledgeable legal advice, errors in the face of these types of tactical maneuvers also can escalate litigation costs or undermine your standing in the litigation.
Challenges in Enforcing a Judgment: While the litigation process can be lengthy and costly, the task of enforcing a judgement that arises out of settlement or trial can be the most difficult part of the process. As an experienced business collection lawyer, I might use a range of collection enforcement procedures that include but are not limited to the following:
- Retaining skip tracing services
- Obtaining a writ of execution to seize assets or property owned by the business
- Filing a lien against property or assets owned by the business
- Conducting a debtor examination to locate property or assets of the business against which the judgment can be enforced
Andrew Weisblatt of the Weisblatt Law Firm in Houston has been advising all types of businesses from large corporations to one-owner operations for many years. He understands the unique approach needed for each type of B2B debtor that you have to ensure the most successful collection results possible. Please do not hesitate to call a B2B collections attorney at 713-666-1981 today.