What Does a “Judgment” Really Mean?- by NEIL SISKIND, ESQ.

I probably get 15 emails a week- from judgment debtors or creditors- asking how to deal with a judgment. Here are the important basics I provide:

If you’re a “judgment creditor”, a judgment entitles you to reach income and/or assets of a debtor, company assets (business debtor), salaries (individual debtor), bank accounts, and real property, to pay the monies due. There are detailed procedures that must be followed to secure the income and assets, and there are certain limitations on wage garnishment levels.

3 Biggest Points to Consider: (i) Make all efforts to collect “before” filing a lawsuit b/c a debtor may elect to put forth a defense, or the debtor may file bankruptcy if it has many debts or lawsuits, and then you likely won’t get paid, at all; (ii) follow proper income garnishment and asset seizure procedures post-judgment to help ensure success; (iii) if your debtor is a corporate entity, it could liquidate, with no way to pay debts- are you a secured party?

If you’re a “judgment debtor”, if you have income, or bank accounts, or own a home, all can be reached once a judgment is obtained.

3 Biggest Points to Consider: (i) Contact the creditor before a lawsuit is filed to try to settle for less or set a payment plan; (ii) retain an attorney if being threatened with legal action or if sued, or have a judgment on you, to negotiate with the creditor and to get settlements in an enforceable writing; (iii) consider how bankruptcy can discharge the judgment obligation.

https://www.debt-solutions-attorney.com/judgments

 

WE BUY RECEIVABLES

“Receivable Advance™” Program
“Rent Advance™” Program

https://www.debt-solutions-attorney.com/we-buy-receivables

We’ll pay cash- 40%* of your overdue invoice’s face value, with the opportunity for you to get 70%**

*For receivables aged less than 120 days.

Older invoices will be considered, but the purchase would be at 30% of face value.

**Upon a full collection within 12 months, you’d receive 30% of total invoice amount in addition to the original 40% purchase amount.

Ex: Full collection: Face value of invoice $5,000.00, the purchase price would be $2,000.00 (40%). If the full amount of the invoice is collected within 12 months, you get an additional $1,500.00 (30%) for a total of $3,500.00 paid to you (70% of face value).

​​We specialize in invoices with up to a $15,000.00 face value.

Receivable Advance™

We will purchase receivables/invoices that meet the following criteria:

​- Open invoice is for a service provided in New York, or a product delivered to a New York resident:

– Business Debt: If the receivable is due from a business (i.e. a product or service provided to a corporation or LLC for a business purpose), the company/debtor that owes the money must be in business for over 5 years.

– Consumer Debt: If the receivable is due from a consumer (i.e. a service or product sold to an individual for household or personal use ex: home repairs, medical services), the person responsible to pay the bill or invoice (the receivable) must live outside New York City.

Compare Your Options for Monetizing Overdue Receivables and Unpaid Invoices:

1. Pay a collection attorney and still not collect.

2. Retain a collection attorney on contingency, and still not collect.

(See our commercial debt collection service on this website if you prefer this service.)

Receivable Purchase Terms:
1. Face value of receivable: $300.00-$15,000.00*.

2. Receivable is less than 120 days past due (older invoices will be considered, but the purchase would be at 30% of face value).

3. Proof and documentation of the service provided, or of the product delivered by your company that led to the invoice or bill, is required.

4. The debt seller (you) to agree to cooperate with buyer (us) in any legal process required for collection.

5. We will pay approximately 40% of face value (final amount depends on circumstances, invoice age, and the debtor’s general profile).

6. Upon a full collection, you’d receive 30% of the collection (less collection costs).

* We will purchase a receivable in any amount, but will pay a maximum of $4,000.00 for any receivable.

​We will not purchase receivables for construction/contracting work.

​​Businesses with receivables for sale may be located anywhere in the U.S. provided that the payor/debtor is in New York State.

Judgments-

We will consider buying New York judgments on a case-by-case basis.

Rent Advance™

We will buy up to 3 months of future rent obligations due from your residential tenant at approximately 70% of amounts due (the final purchase price depends on length of tenancy, tenant profile, payment history). See the “Rent Advances” page of this website for the specifics of our “Rent Advance™” program.

If you need debt collection services instead of selling your receivable outright, see the “Commercial Debt Collection” page on this website.

​Call or email today to discuss the receivable(s) you’d like to sell.

Tel: 646.530.0006

Email: attorney@siskindlawfirm.com

Commercial Debt Collections- The Siskind Law Firm

Commercial Debt Collections

We handle collection actions for businesses. These are not actually “debt collections”- they are legal steps and procedures taken pursuant to a breach of a written or verbal agreement to pay a sum certain for a product or service (or in repayment of a loan).

When a customer or client that is not paying an invoice or a debt becomes a problem, sometimes it takes an aggressive approach to let them know that you are serious about being paid. Other times, it is a sensitive topic that requires tact and care so that the relationship is not disturbed, and so that more business can be done in the future.

We handle these matters on a contingent fee basis (20% of amount collected). We’ll review the basis for the payment owed and develop the theory of the breach of payment and the proper approach to collect the monies due.

We use best efforts to resolve outstanding receivables and debts without litigation. Lawsuits are a last resort in the commercial debt collection process. The best chance of obtaining monies due, will, most often, occur before a lawsuit is filed. There is usually a reason that the invoice, or receivable, or debt, isn’t being paid, such as that the party that owes the money is having financial issues, a cash crunch, or, simply, is not taking you seriously or making their payable to you a priority. Lawsuits take time and include court costs and fees. A judgment must be obtained and then collected upon, if possible. It’s better to use all other available tools, where possible.

Anyone can prepare a lawsuit, serve it, and enter into the legal system and the judgment collection process. That’s easy. But, it’s timely, costly, and may not result in a judgment (such as if it gets settled after filing, or, if the court finds a technicality, or, if the other party responds and you lose the case), or may not result in a judgment collection (such as if the payor/debtor files bankruptcy, hides money, or doesn’t have the money). Actually finding a solution and getting your money as fast as possible, or, at least a portion of it, is the better and more prudent objective.

Of course, if the other party is even disputing that the monies are due, at all, such as where the other party has responded to you by claiming that you breached a contract by failing to deliver the product or service promised, then a lawsuit is the only option.

Filing of lawsuits, when necessary, is handled on an hourly fee basis.

Your businesses can be located anywhere in the U.S. as long as the payor/customer/client/debtor is in New York State in order for this firm to assist.

Contact us today to discuss the scope of our service and the monies and/or receivables owed to your company.

* If you are a business that wants to immediately monetize a receivable by selling the outstanding payment obligation of a New York customer or client under an open invoice, see the “We Buy Receivables” page of this website.

* If you are a business that has business debt and open payables of your own with which you are struggling, see the “Business Debt” and “Business Restructuring” pages of this website for help.

How to Handle Business Debt- By Neil S. Siskind, Esq.

https://www.debt-solutions-attorney.com/business-debt

When we form businesses and make investments, we only see the good side and hope for positive outcomes. But we have all had business ventures go in the wrong direction and/or had investments not turn out as hoped. We came across bad information on which we relied, bad people we had not expected, bad economies we did not foresee, political events we could not control, and new technologies we did not anticipate.

Businesses run into trouble for many reasons. Lower revenues and higher than anticipated expenses are the biggest problems. Macroeconomic factors over which you have no control, at all, could be at play. Sometimes you fall behind on bills and payables and things begin to backup on the company and just cascade. Other times, you may feel that money being sought is not owed by your company because the proper product or service was not provided.

​Once the issue is clarified, there are different ways to deal with such problems, from disputing claims, to trying to settle amounts due. We can help you to set the desired approach based on the circumstances of the debt(s) at issue, and also by looking at the overall picture of your company.

https://www.debt-solutions-attorney.com/business-debt

Practical Debt Tips From THE SISKIND LAW FIRM

Practical Debt Management Tips
For Debtors- It’s far easier to negotiate & settle a debt “before” a lawsuit is served on you, & before a judgment is filed against you or your company. If you’re communicating & cooperating w/ a creditor, it encourages the creditor to hold-off on legal action. Due to the recent events, courts are moving much more slowly.
Courts need “people” to operate- judges, clerks, jurors … so, normal operations are hampered. Thus, creditors are interested in “settling” to get, at least, “some” of their money- knowing how long a legal process may take.
Take proper action sooner than later.
For Creditors- If you are owed money, you want to encourage your debtor/client/customer to respond to your payment demand, & you want to get paid before the debtor pays other creditors first, or files bankruptcy. If you’re not getting a response, retain an attorney to exhibit your determination to get paid- now.
Commercial Collections https://lnkd.in/dwvgiKF
Distressed Asset Investing https://lnkd.in/eKguD77

Small Business Cash Crunches: Strategize to Minimize By NEIL S. SISKIND, ESQ.

Having a plan of how to handle upcoming expenses, open payables, payments under contracts, and general debts and obligations coming due, is pivotal to a small company’s survival if credit tightens and earnings and/or revenues decline.

As- or before- your small business begins to face financial challenges, your company should develop a comprehensive strategy for managing cash flow and having the maximum possible control over debts and obligations.

Take “proactive” steps with counterparties and creditors to settle debts, extend payment periods, cancel unproductive contracts, and renegotiate terms- while collecting on your own open receivables to keep cash flow flowing to maintain your operations.

Efficiently and successfully minimizing difficulties from excessive debts and potentially debilitating forward obligations requires the use of skilled and experienced legal counsel to help structure  an advanced plan of action and the discipline to implement your strategy to the highest possible degree.

 

https://www.debt-solutions-attorney.com/business-debt

Housing- It’s (Way) Different This Time By: NEIL SISKIND

Housing- It’s (Way) Different This Time By: NEIL SISKIND

Part of, or much of, the growth in housing in recent years, other than being due to low unemployment and low interest rates, is because of “long term” investors are in the market in a historic way (which is also due to low interest rates- as well as low Treasury not yields).

But, it may not be like last time (meaning earlier this century). In the hunt for yield, housing yield (i.e. rent) is a somewhat steady and predictable stream of income. At the same time, the house asset is appreciating. And, then there are the tax benefits of owning real estate and shielding income.

Private equity, corporate buyers, and hard money, all in search of safe yield, means that more purchasers and more lenders are in the housing market. And they are long-term buyers seeking for income- as opposed to the house-flippers of the early 2000’s.

Add this to the nation’s aging demographics, which mean that homeowners who bought years ago are not moving-up, or not moving at all- and we have a strong housing market that could persist in the face of any economic slowdown or recession.

In fact, if the economy worsens, there will be more renters than buyers, and yield-chasing house owners would have lower vacancies and would be able to demand higher rents.

And, all of this means, that the analysts who have been using the housing market as a gauge of consumer strength, have underestimated how a slowing economy, lower inflation, and lower interest rates and bond yields due to the slowing economy, have been the actual causes of the strong housing market- and not low unemployment and a strong consumer.

We Buy Invoices – We Buy Trade Debt

WE BUY RECEIVABLES – WE BUY INVOICES – WE BUY TRADE DEBT

“Receivable Advance™” Program
“Rent Advance™” Program

https://www.debt-solutions-attorney.com/we-buy-receivables

You are guaranteed to get 40% of your receivable’s total value- with the potential to get 60% or 70%*.

*For receivables aged less than 120 days.
*Older invoices will be considered, but the purchase would be at 30% of face value, with the potential to get 60%, after collection.

*We specialize in invoices with up to a $15,000.00 face value.

Receivable Advance™

We will purchase receivables/invoices that meet the following criteria:

​- Open invoice is for a service provided in New York, or a product delivered to a New York resident:
– Business Debt: If the receivable is due from a business (i.e. a product or service provided to a corporation or LLC for a business purpose), the company/debtor that owes the money must be in business for over 5 years.

– Consumer Debt: If the receivable is due from a consumer (i.e. a service or product sold to an individual for household or personal use ex: home repairs, medical services), the person responsible to pay the bill or invoice (the receivable) must live outside New York City

Compare Your Options for Monetizing Overdue Receivables and Unpaid Invoices:

1. Pay a collection attorney and still not collect.

2. Retain a collection attorney on contingency, and still not collect.

3. Pay an attorney on contingency who collects, and to whom you pay approximately 30% of the collected amount (which may be less than the full amount, so you may only get 30%, 40%, 50% of the face value)- and it could take months, which costs you money. (See our commercial debt collection service on this website if you prefer this service.)

Attorneys can actually charge more than 30% if a lawsuit is filed.

4. Pay a debt collector who the debtor ignores and who offends your customer with a lack of professionalism.

OR

5. Get half your money now, guaranteed- with more upside possible: Sell us your receivable today, get paid 50% of the value today, and, if the face value is collected “in full”, get 20% more (less costs of collection)- for a total of 70% of the receivable (50% of which is guaranteed and paid up-front).

If less than the full amount is ultimately collected (a partial collection), you get 10% of the collected amount (less costs of collection).

Examples:

i. Full Amount Collected: We buy your $4,000.00 receivable for $2,000.00 cash. If we collect the full $4,000.00 face value, you get $800.00 of it (20%), for  total of $2,800.00, or 70% of the initial $4,000.00 receivable.

ii. Less Than Full Amount Collected: We buy your $4,000.00 receivable for $2,000.00 cash. If we collect only $3,000.00 of the $4,000.00 due under the receivable, you get $300.00, or 10% of what’s collected, for a total of $2,300.00, or about 60% of the initial $4,000.00 receivable.

Here’s an example of a collection action vs. selling your receivable:

Receivable Collection:

You are owed $4,000.00 for services rendered. A collection agent or attorney is able to get it settled for $3,000.00. The attorney gets a 30% fee ($900.00), and you receive $2,100.00 against your initial $4,000.00 invoice after 4 months of negotiations.

(The above assumes a collection can be made, and no lawsuit is filed to do so, which would mean more costs and fees for you, the creditor.)

Selling the Receivable:

If you had sold us that same invoice, you’d have received $2,000.00 (50%) 4 months earlier, with the chance to get even more upon our final collection. If we collect the full $4,000.00, you’d get an additional $800.00 (20%), for a total to you of $2,900.00. If we collect only $3,000.00, you’d get another $300.00 (10%), for a total to you of $2,300.00.

Receivable Purchase Terms:
1. Face value of receivable: $300.00-$10,000.00*.

2. Receivable is less than 120 days past due (older invoices will be considered, but the purchase would be at 30% of face value, plus 30% of full collection, less costs of collection).

3. Proof and documentation of the service provided, or of the product delivered by your company that led to the invoice or bill, is required.

4. The debt seller (you) to agree to cooperate with buyer (us) in any legal process required for collection.

5. We will pay approximately 50% of face value (final amount depends on circumstances, invoice age, and the debtor’s general profile).
6. Approximately 20% of the collected amount is paid to the debt seller upon a full collection (less collection costs). Specific terms and conditions to be provided at time of purchase.

* We will purchase a receivable in any amount, but will pay a maximum of $4,000.00 for any receivable.

We will not purchase receivables for construction/contracting work.

​Businesses with receivables for sale may be located anywhere in the U.S. provided that the payor/debtor is in New York State.

 

Rent Advance™

We will buy up to 3 months of future rent obligations due from your residential tenant at approximately 70% of amounts due (the final purchase price depends on length of tenancy, tenant profile, payment history). See the “Rent Advances” page of this website for the specifics of our “Rent Advance™” program.

If you need debt collection services instead of selling your receivable outright, see the “Commercial Debt Collection” page on this website.

​Call or email today to discuss the receivable(s) you’d like to sell.

Tel: 646.530.0006

Email: Attorney@siskindlawfirm.com

Collateral Caution for Lenders- By: Neil Siskind

The value of business loan collateral (besides real estate) in this fast-moving, fast-changing world, can, also, be fast-changing.

Hard business assets have, heretofore, always provided good security for business loans. But, while once considered good loan collateral, hard assets now become quickly outdated & lose value because industries & technologies rapidly evolve, and because entire ways of life, shopping, and work, are changing. Thus, hard business assets are less reliable loan security.

In the modern economy, used machinery and other used equipment are often more valuable as scrap than in their present forms due to rapid technological changes, economic changes, & disinflation, resulting from technology & globalization- while product inventories quickly lose value due to technology’s & globalization’s influences on disinflation, making new products nearly as inexpensive as are aged or excess products.

In the digital age, goodwill, existing direct to consumer distribution, cash flows, & IP, may be the best forms of (non-real estate) business loan collateral- versus machinery, equipment, existing wholesale distribution channels, & inventory.

Things once considered to be tried-and-true & measurable loan security- are no longer that, at all.