Allison L. Friedman, P.A.Allison L. Friedman, P.A.2024-03-08T17:54:24Zhttps://www.flcollectionslawyer.com/feed/atom/WordPress/wp-content/uploads/sites/1200882/2019/10/cropped-Fav_Icon-min-32x32.jpgOn Behalf of Allison L. Friedman, P.A.https://www.flcollectionslawyer.com/?p=497082024-03-08T17:54:24Z2024-03-08T17:54:24ZWhen you set up a new business, it is important to remove any rose-tinted spectacles you may unwittingly have put on. While a positive attitude is crucial to getting a business off the ground, it can sometimes cloud people’s judgment.
Staying aware of what could go wrong makes it less likely an event will derail you if it does occur. Here are a few examples:
You and your business partner fall out
Going into business with someone can be intense. You might spend more time with each other at the start than with your families. The pressure to succeed and the financial costs of failure can add pressure to a partnership and may lead yours to break. Be sure you document how you will handle that should it occur.
An unhappy customer takes you to court
Being on the end of litigation can be demoralizing and time-consuming. That is true whether it's a customer, supplier or government entity that takes you to court over something. Even if you win the case, it may do significant damage to your reputation and bottom line. The consequences could be much worse if you lose.
You suffer ill health
Let’s say you set up a software company, then, a year down the line, find you can no longer use a keyboard and mouse due to carpal tunnel syndrome. You might find a way around it, but you might have to look for a new career and leave or close the business. Or maybe you get injured in a car wreck and can no longer work at all. Injury to you, whether short or long-term, could have a massive effect on your company’s ability to survive.Hopefully, none of these things will occur. But, if you accept they could and consider your options now, it can help you build a more resilient company. ]]>On Behalf of Allison L. Friedman, P.A.https://www.flcollectionslawyer.com/?p=497072024-02-27T21:20:54Z2024-02-27T21:20:54ZStudent debt is a major issue in the United States. Most students cannot afford to pay for college on their own, as it could cost them over $100,000 just to go to a local school. As a general rule, the United States does not have tax-funded college options like the rest of the developed world.
What this means is that there are about 43.5 million people in the United States who hold $1.74 trillion in student loan debt. Other than mortgage loans, student loans are the biggest form of debt in the United States. The average monthly payment for a borrower is right around $337, although there are plenty of people trying to pay thousands of dollars per month.So how many of them are missing these payments? It’s fairly common, with reports claiming that 15% of these students have fallen behind on paying off their loans. If 15% sounds like a small number, keep in mind that it represents around $261 billion worth of student loan debt.
Why don’t they pay and what can you do?
There are many reasons why students fail to pay back what they owe. Some of them can’t find employment, so it is simply unrealistic. Others have so many additional expenses that they can’t afford to pay student loans on top of it. Life gets very expensive and people have to make choices.If you are owed money for these student loans, or if your lending company has numerous borrowers who are defaulting and falling behind on their payments, it can have a major financial impact on your business. It is crucial that you understand exactly what legal steps you can take to resolve the situation.
]]>On Behalf of Allison L. Friedman, P.A.https://www.flcollectionslawyer.com/?p=497062024-02-25T00:33:26Z2024-02-25T00:33:26ZInconsistent follow-up procedures
Consistency is key in debt collection; delayed or sporadic follow-up can prolong the debt recovery process and diminish your chances of successful resolution. It would help if you established clear and systematic follow-up procedures to help ensure timely engagement with debtors. This may involve setting reminders for scheduled follow-up calls or emails, maintaining a log of all interactions and adhering to predetermined escalation protocols as necessary. Maintaining a proactive follow-up approach can expedite the resolution process and optimize your chances of recovering outstanding debts.
Ignoring legal regulations
Another common pitfall in debt collection is disregarding the legal framework governing the process. Debt collection is subject to stringent regulations, such as the Fair Debt Collection Practices Act (FDCPA), which outlines permissible practices and prohibits abusive or deceptive behavior. Violating these regulations can lead to legal liabilities, including fines and damage to your reputation. It is imperative to familiarize yourself with the relevant laws and regulations governing debt collection to help ensure compliance at all times. This includes understanding the limitations on communication with debtors, the protocols for validating debts and the procedures for pursuing legal action if necessary.
Lack of empathy and communication skills
Effective communication is paramount in debt collection. Failing to empathize with debtors' circumstances and resorting to aggressive tactics can escalate tensions and hinder resolution. Instead, prioritize empathy and active listening when engaging with debtors. Seek to understand their financial challenges and demonstrate a willingness to explore mutually beneficial solutions. You can cultivate a conducive environment for resolving debts amicably by fostering open and respectful communication.
Navigating debt collection effectively requires a strategic and meticulous approach. By avoiding common mistakes such as disregarding legal regulations, lacking empathy in communication and failing to follow up consistently, you can enhance your effectiveness and boost your chances of successful debt recovery.]]>On Behalf of Allison L. Friedman, P.A.https://www.flcollectionslawyer.com/?p=497052024-02-16T14:13:10Z2024-02-16T14:13:10Zinitiate garnishment, a creditor must file a motion for a writ of garnishment with the court that issued the original judgment. This motion requires detailed information about the debtor's employment or the location of their assets.
Serving the writ of garnishment
Once the court issues the writ of garnishment, the creditor must serve it on the entity holding the debtor's assets, known as the garnishee. In the case of wage garnishment, this could be the debtor's employer. If bank accounts are the target, the bank is served.
The garnishee is legally obligated to withhold the specified amounts from the debtor's wages or accounts and direct them to the creditor. It's important for creditors to accurately identify the garnishee and ensure proper service to avoid delays or dismissal of the garnishment action.
Exemptions and debtor's rights
Florida law provides certain protections for debtors, limiting the amount that can be garnished and exempting specific types of income. For example, wages of a head of household are largely protected from garnishment. There are exemptions for social security benefits, retirement accounts and other specific income types.
Collecting the garnished funds
Upon successful service of the writ, the garnishee will begin withholding funds from the debtor's wages or accounts, as applicable. Depending on the court's instructions, these funds are then remitted directly to the court or the creditor.
Seeking legal assistance throughout the process helps ensure that creditors handle these situations according to applicable laws so that they can benefit from receipt of what they’re due, not additional legal and practical headaches.]]>On Behalf of Allison L. Friedman, P.A.https://www.flcollectionslawyer.com/?p=497042024-01-30T16:12:46Z2024-01-30T16:12:46ZAs a lender or a business owner, you certainly expect people to pay back the money that they owe. An agreement was made and you upheld your end of the deal. You expect them to pay on time and pay the correct amount without issue.
Of course, this doesn’t always happen. Many people fail to pay, and then they make excuses or present a reason why they haven’t paid their debt. Here are some examples of excuses they may use.
Payment is coming soon
First of all, many people will say that they’re going to make the payment soon. They just don’t have the money at the moment, but they will have it the next time they get paid – or the next week, or the next month. Unfortunately, many people continued to make these excuses again and again without ever paying.
They can’t afford the debt
In many cases, people will just say that it’s unaffordable. Maybe they took on that debt when they had a steady job, but their hours were reduced or they lost their job. It made sense previously, but their financial situation has changed. They feel that they can no longer afford to pay back what they owe.
They’re not the only one
One excuse that people sometimes use is simply to claim that they are no different than anyone else. A lot of consumers don’t pay back their debts. They feel like this justifies their decision not to do so. The reality, naturally, is that all of those consumers should eventually pay off their debts. Unfortunately, these are just a few of the excuses you may see. As you try to collect, take the time to look into your legal options.]]>On Behalf of Allison L. Friedman, P.A.https://www.flcollectionslawyer.com/?p=497032024-01-18T15:37:30Z2024-01-18T15:37:30Zbroader purpose of recovery, but also helps to identify when legal action against a particular account holder might be necessary.
Obviously, a robust accounting system is the foundation for tracking accounts effectively. Modern accounting software can automate much of this process, providing real-time insights into outstanding accounts. These systems can flag overdue accounts and track communication with debtors. Yet, flagging overdue accounts is not enough when it comes to determining whether it’s time to take action against a particular overdue account holder.
Supplemental approaches worth considering
If you’re a business owner, you’ll want to regularly review your company’s accounts receivable to identify accounts that are moving towards collections. This involves monitoring payment due dates, the duration of overdue payments and the amount outstanding. Regular reviews help in early detection of problematic accounts to allow for timely interventions.
You’ll also want to keep in mind that having a clear collections policy is essential. This policy should outline the steps to be taken when an account becomes overdue, such as sending reminder notices, making phone calls and eventually moving the account to collections. The policy should also define the point at which legal action may be considered. If you are unsure of when the law allows for such action, remember that seeking legal guidance is always an option.
You’ll also want to determine clear thresholds proactively for when to initiate legal action. This could be based on the amount owed, the length of time the account has been overdue or a combination of factors. These thresholds can help in making consistent and objective decisions about pursuing legal remedies.
By maintaining a structured approach to collections, businesses can better manage their receivables and maintain a healthier financial standing. If you’re a business owner, you’ll want to be as proactive as you can in this regard, as doing so can help to ensure that you’re paid what you’re owed.]]>On Behalf of Allison L. Friedman, P.A.https://www.flcollectionslawyer.com/?p=497022024-01-03T02:23:42Z2024-01-03T02:23:42ZWhen a borrower doesn’t pay back an auto lender, the lender may decide to move forward with the repossession. This is when they reclaim the vehicle that was purchased with the loan. The goal is to then sell that car again, getting the money that was still owed by the initial borrower.
But the reality is that this doesn’t always work out as smoothly as one would think. Cars lose value at an incredible rate. Many other assets will retain some value for at least a few years, but a new car drops in value as soon as someone drives it off of the lot.So, when a lender reclaims a car and then sells it to another buyer, the lender still tends to lose money. This is why lenders often do not repossess cars after a single missed payment. They do not want to take the vehicles back if they can avoid it. Instead, they want the borrowers to continue paying the loans. That’s the only way for the lender to actually get back the money they expected. Repossessing the car is seen as the last resort when it’s clear that the person isn’t going to pay at any point in the future.
What other options are there?
This situation is certainly not ideal. Mortgage lenders may have better luck with repossessed homes in a strong housing market than companies who service auto loans have with repossessed vehicles. A house may sell today for more than it would have just a few years ago. Meanwhile, a car is almost inevitably going to move in the opposite direction, quickly hemorrhaging value as soon as it is purchased. This makes things much more complicated, so lenders who are not being paid need to understand all of the legal options they have.]]>On Behalf of Allison L. Friedman, P.A.https://www.flcollectionslawyer.com/?p=497012023-12-20T23:03:16Z2023-12-20T23:03:16ZThey commingle financial resources
During the early stages of a business startup, entrepreneurs might use their personal credit cards to pay certain expenses. They might use their personal checking account to cash the first few checks that they received from clients.
Although this may seem like a way to delay starting separate financial accounts, it is actually a serious mistake. Commingling personal assets with business resources could lead to personal financial responsibility for business obligations in the future.
Plaintiffs suing the business could ask the courts to “pierce the corporate veil.” If a judge agrees that a review of company finances shows certain mistakes occurred, like financial commingling, they can hold the owner personally responsible.
An individual's future income and personal assets could be at risk if they do not carefully maintain separate finances for themselves and the organization they start. Learning from the mistakes of others and getting the right legal support can help reduce the risk inherent in an entrepreneurial endeavor.
]]>On Behalf of Allison L. Friedman, P.A.https://www.flcollectionslawyer.com/?p=497002023-12-04T21:25:59Z2023-12-04T21:25:59ZWhen someone isn’t paying what they owe, there are certain steps that can be taken to try to reclaim that debt. In some cases, it is as simple as notifying them that the amount is still due, as they may have forgotten. But in many cases, you have to take much more drastic steps.
One potential legal step that can sometimes be taken is known as wage garnishment. This can only be done with a court order, so it isn’t done lightly. But it also has one major benefit over any other collection efforts.
The money is withheld by the employer
The way that wage garnishment works is that the person’s employer withholds the money from their paychecks. This takes the decision out of their hand. Previously, they would’ve been paid their full wages and then asked to pay back a portion of the outstanding debt. But wage garnishment can be set up so that that money is taken out first, and the debt will eventually be paid off through these small installments.This is useful if it’s a situation where the person has enough money to pay back the debt, but they simply do not budget well enough to make it happen. They spend everything they earn each month and claim there is nothing left for the debt. By garnishing their wages, it ensures that the correct portion of those earnings goes to the debt they already have, rather than being spent on future purchases. As noted, though, this is a legal process that cannot always be used. It’s important to know when it is an option and what steps to take.]]>On Behalf of Allison L. Friedman, P.A.https://www.flcollectionslawyer.com/?p=496992023-12-03T18:11:31Z2023-12-03T18:11:31Zpast-due invoices.
Provide firm due dates
Some customers may not realize that there are firm due dates for invoices. While it might be tempting to say things like the balance is due “net 60,” not all customers will understand. Instead, it’s best to put an actual due date that includes month, date and year so there’s no discrepancy about when payment is due. Ensure the due date is easily visible on the invoice.
Outline past-due penalties
Outline the penalties that come with late payments. If your payment formula is based on a percentage model, putting the actual dollar amount for the late payment on the invoice may be beneficial. Tiered penalties also need to be written out clearly. These include late payments based on the number of days the invoice is past due.
Offer payment plans
Customers may not pay an invoice if they can’t pay the balance. To combat this, you can include payment plan terms you’re willing to accept. Make it clear that the entire balance will become due if the payment plan is used and a payment is missed.
Establish immediate payment incentives
Some customers may be more responsive if you include an incentive for immediate payment in full. This might be as minor as offering 5% off if the balance is paid within 10 days of sending the invoice. Make the terms easy to understand and straightforward so customers know how to take advantage of the deal.
Warn of legal action
Some customers still won’t pay even if you send them invoices, so you may have to outline what legal action is possible. This is typically a last resort and should only be done if you intend to follow through.
Ultimately, business owners have to do what’s best for their businesses. Reviewing their options and seeking legal guidance concerning the collections process may be beneficial. This enables them to learn their options and set a plan to collect what's due to their company in ways that are likely to be effective for their circumstances.]]>