No matter what industry your business serves or the current economic climate, collecting payment for your product or service can sometimes prove difficult. The Bankruptcy Litigation and Collections practice at Houston Harbaugh helps clients collect past due payments as well as develop processes to simplify debt collection.
Our attorneys collect commercial debt for clients who are creditors in a variety of industries, such as manufacturing, distributing, retail and service. We also represent contractors, subcontractors and suppliers using construction industry-specific tools, such as mechanics’ liens and the Contractor/Subcontractor Payment Act, when appropriate.
Our approach to collecting commercial debt involves an in depth assessment of the creditor’s situation. We work closely with the client to determine whether the debt is ultimately collectible, and to determine the client’s desired level of pursuit of the debt. This collection analysis includes providing our clients with information pertaining to the legal claim, proposed strategies to collect the debt, and a budget for each method. The analysis could result in a demand letter to a debtor, negotiation of a re-payment plan, or the immediate commencement of a lawsuit. We have taken commercial debt collection actions to state and federal court and have also worked to resolve these matters through alternative dispute resolution, such as arbitration and mediation.
In situations where a judgment has been entered, the next step focuses on the execution of that judgment. We have been successful in “chasing” the money, and reducing that paper judgment to actual money.
We routinely practice in bankruptcy courts across the country, representing individuals and companies as creditors. We regularly represent companies in adversary actions, including preference claims, turnover claims, and fraudulent transfer claims.
A critical part of our Bankruptcy Litigation and Collections Practice involves proactively assessing a client’s exposure to collection risks. We advise clients on establishing business practices that would enhance the successful collection of money owed. These preventive measures include:
- Reviewing and, if necessary, revising existing Terms and Conditions documents that include details such as a penalty interest clauses, costs, fees and venue.
- Evaluating purchase orders to include language that can be leveraged in a collection process.
Houston Harbaugh’s experience collecting commercial debt and establishing internal collections processes for clients can help protect your business longevity. Contact us today for more information on bankruptcy litigation and collections options.