Suppose you have invested labor and parts in a piece of construction equipment and you have not been paid. The person with whom you contracted for the repair of this equipment is not the title owner; rather, the person who took the equipment to you and asked you to repair it leased the equipment from the owner in order to perform some …
For most creditors, word that one of their credit account customers has filed for bankruptcy protection under Chapter 7 of the United States Bankruptcy Code creates a sense of apprehension. It is common knowledge that payments received from the customer within the 90-days immediately preceding the filing of the bankruptcy petition are subject to review by the trustee. All creditors, …
Enforcement of Foreign Judgments: Information For Creditors Regarding Collecting Out-Of-State JudgmentsBy James R. VannAttorney at Law Suppose you have a judgment against a debtor and the debtor either leaves the state or owns property in another state. How can you collect on your judgment? The answer to this question lies in a basic understanding of how these “foreign judgments” operate. Generally, …
The following dates and information must be known and provable in order to sustain a lien on real property in North Carolina: 1) Date of first performance – The first date on which equipment, materials, and supplies were sold for the specified project. 2) Date of last performance – The last date on which equipment, materials, and supplies were provided …
The legal rights of a lien claimant in the construction industry includes a breach of contract remedy as well asthe extraordinary remedies provided by the mechanics liens laws. The legal rights of a lien claimant can include a claim of lien upon the real property improved and the funds due to the parties involved with the construction. While the contractual …
Bankruptcy, Dismissal & Statutes of Limitation: A Landmine For The UnwaryBy James R. VannAttorney at Law A recent opinion issued by the North Carolina Court of Appeals should serve to remind all creditors of the necessity of vigilance when a debtor is in bankruptcy. In Person Earth Movers, Inc. v. Buckland,N.C. App. , 525 S.E.2d 230 (2000), the Court reviewed …
Commercial Credit Application – What Information Is Really Necessary?By James R. VannAttorney at Law The first step in collecting a delinquent account is obtaining information about the debtor. The credit application is usually the best source for obtaining valuable information about the debtor and the assets of the debtor. If the necessary contractual formalities are in order (i.e. date, terms, signatures, …
Am I Liable For Giving Job References?By James R. VannAttorney at Law As an employer, you have probably been asked to give a job reference for a former or current employee. If that employee had a record of unsatisfactory job performance, it is likely you agonized over the information you provided. You may have been afraid to give a negative reference …
In today’s credit-driven society, disputes and complaints are an almost everyday occurrence. The time and resources expended to reach a reasonable solution to even minor disputes substantially increases the cost of doing business. Attorney’s fees and litigation costs are far from rare. In facing the dilemma of backed-up court dockets and mounting public frustration at the perceived inability to quickly …
Most businesses may face challenges in the near future in collecting past due accounts receivable. Being persistent generally will increase your productivity in collection and remaining positive will certainly help you stay in a better frame of mind! Statistics support the idea that most customers want to pay their past due accounts. Thus, being persistent in asking for payment generally …
North Carolina law provides that a business which operates in North Carolina and collects personally identifiable information (social security number, drivers license number, date of birth, etc.) on individuals (including employees and customers), the business is required to maintain an Identify Theft Policy. The Federal Trade Commission now requires businesses to identify “red flags” which are areas for possible identify …
It can be shocking, crushing, and, worse, financially devastating to have a valued customer declare bankruptcy. However, the ambitious credit manager and business owner should strive to be prepared for the bankruptcy of a customer. Careful planning can mitigate or even negate the economic impact of a customer’s bankruptcy. Yet to fully prepare for the worst, it is necessary to …
Preferential Transfers in Bankruptcy: How to Minimize the Preference Risk For suppliers of goods and services, nothing may be more unsettling than discovering that a customer has filed for bankruptcy. To add insult to injury, there is a risk that any recently received payment or settlement might be recaptured by the bankruptcy trustee as a preferential transfer or “preference”. Do …
