If your customers are a mosaic of paid in full, paid on time, paid late, 90 days delinquent, and 180 days delinquent due to the coronavirus pandemic, personal debt collection may benefit you. Our debt collection lawyer can help you renegotiate small business contracts and find your way through breached contracts, bankrupt customers, pandemic-related modifications to federal rules and laws, and reduced cashflow. Businesses closed never to reopen in 2020. Our commercial collections attorney can help you negotiate new contracts, increase your customer base, and profit after the pandemic.
Uncertainty in 2021
All small businesses struggled with uncertainty during 2020. Business owners turned to online arbitration services, free online mediation, and the United States Bankruptcy Court to renegotiate the terms of their business contracts. You may not take your customers’ stimulus funds as payment for their debt.
Online Dispute Resolution
COVID-19 created worries, delays, zoom meetings and video conferences. Online dispute resolution through the nonprofit JAMS Foundation is the logical outcome of zoom video conferences. The JAMS platform can be used to solve business problems in the United States or internationally. JAMS hired 400 distinguished dispute resolution neutrals that mediate pandemic-related legal problems free of charge. The JAMs website contains tutorials for lawyers and businessmen or women interesting in using the online JAMS Endispute and JAMS Court Call software.
Breached contracts can destroy a small business relying on specific customers for operating capital. Debt collection rules have been altered due to the Covid-19 pandemic. You may do better if you reorganize your business, change the terms of your loans and contracts, liquidate nonessential assets, and possibly strip liens from the deed to your home or your business properties through Chapter 11 bankruptcy. Our debt collection attorney can help you emerge stronger after the coronavirus pandemic by:
• Finding and administering new contracts
• Drafting and enforcing agreements
• Negotiating or collecting on breached contracts
• Finding and negotiating government contracts
The Coronavirus Aid, Relief, and Economic Security Act altered the United States Bankruptcy Court procedures to benefit businesses that suffered financially. If your customer filed for bankruptcy, you can even file litigation in the U.S. Bankruptcy Court. The modifications lengthened the repayment or reorganizing plan from five years to seven years, and it’s possible for anyone or any business damaged by the COVID-19 pandemic to file for bankruptcy. The modifications expire on March 27, 2021.
Chapter 11 Bankruptcy
Entering Chapter 11 business restructuring, you should pay your liability insurance 12 months in advance to avoid losing your business insurance because you are bankrupt. You can return rented or loaned property and discharge the unpaid deficit on the loan or lease as an unsecured debt. If your customer leased property or is purchasing property from you on a long-term secured loan, you can place a lien on the deed or title to your customer’s property, motor vehicle, or business equipment to recover your property when your customer defaults on his plan.
A court appointed trustee administers bankruptcy cases. The trustee has the authority to sell your nonexempt property to pay your debts. Debts are prioritized by the trustee and paid in order. Child support and income tax must be paid. Secured loans are second priority, and unsecured loans, credit card bills, utility bills, and medical expenses are paid last.
Arbitration or mediation of contracts through the American Arbitration Association (AAA) online is a welcome alternative to civil litigation. The American Arbitration Association practices nonprofit hearings with lawyers, government agencies, and large and small businesses. The AAA mediators understand and know the possible solutions and outcomes of your business dispute and almost always solve your problem without of damaging judgement in civil court. Arbitration preserves the business relationship between the parties. It’s possible to agree in part and the moderator can propose an equitable solution to the business problem or breach of contract.
Massachusetts debt collection attorneys
Our Massachusetts personal debt collection Super Lawyers have 60 years of combined experience. Our lawyers work with a network of professionals who can find your customer or vendor anywhere in the United States. You may be able to enter a lien on your customer’s property or reclaim your property if the customer is truly out of business or is unlikely to recover from the pandemic. Locating your debtor may be easy from his credit application which might tell you where he works, his bank, his credit report, or from his references, friends, or relatives.
Your Debtor’s Assets
Locating assets may be as easy as going through your customer’s trash. If you can locate assets you might be able to get your customer to pay. Family and friends know if your customer owns a boat or a valuable car or truck. They’ll know if he has a coin colleciton or if he recently transfered the title ot any vehicles or other personal property.
Goldberg and Oriel
Call our Massachusetts debt collections attorneys for a free consultation to discuss large and small business personal debt collection services. Our attorneys can advise you on best customer service, credit, and debt limit policies. Our lawyer will bring you peace of mind while they collect the money you are owed with interest.