Including Attorneys’ Fees and Costs in Contracts

If any aspect of your business involves the extension of credit, you are taking a risk. Incorporating certain terms in your contracts can cover some of the costs of those risks. Whether you are leasing real estate to tenants, selling materials or renting equipment on credit, or loaning money, it is probably a good idea to consider including provisions for late fees, finance charges, and attorneys’ fees in your contracts.

Initiating the Post-Judgment Collections Process

Once a lawsuit is over and judgment has been entered, North Carolina law requires a creditor to take additional steps to begin the process of attempting to collect the judgment. Knowing how to navigate the particulars of this process can improve a creditor’s chances of recovering money from the judgment debtor.

Enforcing Security Interests Under the Uniform Commercial Code

Taking a security interest in a debtor’s collateral is a way to keep pressure on the debtor to make consistent, timely payments. A security interest is simply a lien on assets given to secure an obligation. The power of a creditor’s interest is in the creditor’s ability to enforce the interest by repossessing the collateral upon default.

Essential Promissory Note Terms

A promissory note establishes a contractual obligation for one party to repay another and sets forth the payment terms and rights upon default. As its name implies, it is a promise made by one party to pay another. A note can be used to document the terms of a loan or a debt repayment. Our clients often use promissory notes secured by confessions of judgment to resolve past due accounts either before a lawsuit is filed or to settle a case after it is filed.

A Customer Filed for Bankruptcy – Now What?

There are several types of bankruptcies, and they offer different protections for debtors and different outcomes for creditors. Understanding which type of bankruptcy has been filed and whether there are assets and possible payments to creditors can help a creditor determine the amount of resources to expend on monitoring and participating in the bankruptcy.

Planning to Resolve Disputes Among Business Partners

Disputes among business partners are common. Some can be resolved amicably, but there are times when a dispute can become disastrous for the business. Having a plan for resolving the inevitable disagreements can help the business move forward more easily and can relieve some of the tension among the partners.

Prejudgment Attachment: When and How Can a Creditor Obtain an Attachment Order?

The typical collections process when we receive a new file includes sending a demand letter, filing a lawsuit, obtaining a judgment, and then beginning post-judgment execution against the debtor’s assets. The process can take several months to more than a year to get to the point where assets can be seized. In some cases, this lengthy process can be devastating to the ability to collect the debt. North Carolina law offers some prejudgment options that can be utilized immediately under the right circumstances. Among these is a prejudgment remedy known as attachment.

Collecting Debts Owed by Defunct Corporations and LLCs

Judgment creditors face unique challenges when attempting to collect a debt from a corporate entity as opposed to an individual. Among many challenges, one is what to do when a debtor corporation or LLC ceases to exist. It should come as no surprise that corporate entities are not always around forever. They are often merged with other entities, dissolved, or abandoned. While that may spell the end of the road for creditors, it is not necessarily the case.