10 STRANGE THINGS YOU NEED TO KNOW
by: Wilson Cole
1. If a company files for bankruptcy and it paid you within the last 90 days, the bankruptcy trustee can make you return those funds. It is called a preferential payment and I have at least six clients a year that have faced this issue. So if you suspect a company is in trouble, time is not your friend.
2. Most companies that go out of business never file for bankruptcy. The fact is there is no reason; they simply walk away from the corporation. Yes, you can sue the company and you will get a judgment, but if there are no assets then you will never be able to collect.
3. If you have a debtor sign a personal guarantee and then puts a title, for example “President,” next to his/her name, this more than likely voids the personal guarantee.
4. If you do not have a signed contract in the state of Massachusetts, you will lose the case if the debtor’s attorney is aware that the Massachusetts Supreme Court has ruled that there no agreement without a signed contract.
5. You must register in the state of New Jersey as a licensed recruiter or temporary staffing firm. Failure to do so means that you cannot use the New Jersey court system if you have a dispute or if the debtor fails to pay you.
6. If you do not have a signed contract, you cannot recover interest or legal fees.
7. If you accept a credit card payment, the debtor could try to reverse the credit card charges for up to 12 months after the charge. If you do not have the proper paperwork, the charges could be reversed and the funds pulled out of your merchant account.
8. To be a secured creditor, you only have to have the debtor sign a contract that gives you permission to file a simple form called a UCC1 with the courts.
9. If a company does not pay you and you tell someone that this company does not pay any of it vendors, it could sue you and win. It happened to one of our clients last year.
10. A company can try to reverse a check that might have cleared months earlier. Also, you can demand that your bank refund you the money?
These are just a few of the strange things that can happen on your collection accounts. If you have a question on any of these topics, please email Wilson. Let him know the topic and he will email you a quick video that gives more information on your requested topic. If you need our help on any collection account, please call Wilson Cole at 877-892-3814 Ext 6578.
Wilson Cole is President of Adams, Evens, & Ross – a Commercial Collection Agency Exclusively for the Staffing and Recruiting Industry. Wilson can be contacted at 800-452-5287 Ext 6578 or you may email him at Wilson@aercollections.com.