This Blog is Part IV in a series of Blogs designed to provide business owners with a high-level overview of the legal process for collecting on past-due accounts receivables. Specifically, Part IV focuses on various methods of post-judgment discovery that a creditor can use for locating assets of the debtor to satisfy the judgment.
Very often in a debt collection action, whether a breached contract, defaulted secured note or otherwise, there will be a debtor who is trying to deplete corporate assets (frequently real property) before the inevitable judgment can be rendered. Sometimes depletion isn’t intentional, it is just a byproduct of the business judgment issues that created the problem in the first place. In those circumstances where assets are being wasted, and many more, creditors should consider seeking the appointment of a state court receiver. Receivers can serve as watchdogs for the business, ensuring that status quo is maintained so that the creditors are able to recover whatever assets may remain with an orderly liquidation. In the matters we handle for lenders (and other creditors), receivers come in very handy in the active management of the collateral properties. Appointment of receivers is not a remedy for every case, however, as it often has just as many challenges associated as it does benefits. This Blog post seeks to explore those benefits and drawbacks.
The Florida Revised Limited Liability Act (the “Act”), which will become Chapter 605 of the Florida Statutes, passed unanimously in both the Florida House and Senate. The Act is effective for every new Florida LLC formed on or after July 1, 2014. For existing LLCs, the Act becomes effective on an elective basis between July 1, 2014 and January 1, 2015 and becomes mandatory as to every Florida LLC on January 1, 2015. The question all Florida LLC members want to know is, “How will this new Act affect me and my business?”
So you finally, after months or years of litigation, obtained a massive judgment for your client. You sent written discovery, compelled return of the fact information sheet and even deposed the defendant. After all that hard work, it looks like you have come up with nothing to collect upon. But wait! Sometimes items you believe are not collectable are gems hiding in plain sight or items that logically should be there appear to be missing. Utilize these five tips when searching for assets and you may stumble upon something you would have previously overlooked.
This Blog is Part III in a series of Blogs designed to provide business owners with a high-level overview of the legal process for collecting on past-due accounts receivables. Specifically, Part III focuses on the actions a business owner should take immediately upon obtaining a final judgment against a delinquent customer.
This Blog is Part II in a series of Blogs designed to provide business owners with a high-level overview of the legal process for collecting on past-due accounts receivables. Specifically, Part II focuses on commencing legal action against delinquent customers once it’s become apparent that pre-suit collection efforts are futile.
Many creditors have default interest provisions in their contract documents. The highest rate allowable under Florida law for these default provisions is 18% per annum or 1.5% per month. However, creditors almost never address post judgment interest in their contract documents. Such omission leaves them at the mercy of the interest rate set forth in Section 55.03, which states:
This Blog is Part I in a series of Blogs designed to provide business owners with a high-level overview of the legal process for collecting on past-due accounts receivables. Specifically, Part I focuses on the steps a business owner can take prior to filing a lawsuit against a delinquent customer.
Florida’s Third District Court of Appeals has made it even harder for Florida’s associations to survive within this tough market environment. For decades, Florida law was interpreted as to always require the purchaser of a residential foreclosure to pay the past-due assessments owed to an association by the previous property owner. The Third District, however, has altered the interpretation of that law. In the case of Aventura Management, LLC v. Spiaggia, the Third DCA held that associations can now be considered jointly and severally liable for past-due assessments in certain situations. 105 So.3d 637 (Fla. 3d DCA 2013).
Isn’t tax season a wonderful time for creditors seeking to collect on a judgment? A time when all that money flowing from the federal government to debtors could go straight into your pocket. Or can it? Can you garnish the Internal Revenue Service (“IRS”) in order to take that refund check before the debtor gets a hold of it and the money disappears?