The Collection Process
Business people hate litigation, and the New Jersey collection law firm of James S. Friedman LLC, understands that. We know that our clients do not want to be involved in litigation unless it is absolutely necessary. Clients typically view litigation as a time consuming distraction that ultimately lessens the value of their claim against a debtor. The bottom line is, well, the bottom line - the client's goal is to get paid. Toward that end, the firm works through the collection process as quickly as possible, but in a manner that makes business sense for the client and the client's business objectives.
Every case is different, and therefore requires a different collection strategy. Work begins with a thorough analysis of a file to determine whether it even makes sense to pursue the underlying debt. It is important to learn as much as possible about the debtor's status and available assets early in the collection process. Unfortunately, not all valid debts are collectable. If it appears that viable resources are being invested in a fruitless collection effort, the firm will advise the client accordingly.
If a debt is collectable, it may become obvious very early in the process that a particular case can be resolved only by starting suit. We understand, however, that this is not always true. Although the firm is always prepared to institute litigation and proceed to Court, it attempts to avoid this wherever possible because of the costs to the client. Accordingly, virtually every case begins with a relatively simple but firm demand for payment, typically in the form of a letter. Litigation results if and when this letter is not met with an appropriate response, such as payment of the outstanding obligation.
If a lawsuit is necessary, the firm works to conclude it as promptly as possible, and with as few court appearances and as little discovery as circumstances allow. The reason for this is simple - court appearances and the discovery process can be disruptive to the client, and frequently amount to little more than bad faith efforts by debtors to delay payment. Accordingly, from the day the lawsuit begins, the firm's goal is to obtain a judgment or favorable settlement as quickly and as efficiently as possible. We appear regularly in the Superior Court of New Jersey and the United States District Court for the District of New Jersey on behalf of our collection clients, and are well known in these venues.
Judgments are frequently easy to obtain, but must then be turned into money. Thus, upon receiving a judgment, the firm moves quickly into post-judgment proceedings so as to identify and locate assets and seize them for our client. Execution can be complicated by a debtor's efforts to hide assets, or place them beyond the reach of creditors. The firm uses all available means (including the latest technology and private investigators) to find hidden assets, and then seizes them in satisfaction of the obligation owed to our client.
Finally, litigation is not the only process available to resolve disputes concerning debts. Where a formal process is necessary, but litigation simply makes no sense, the firm seeks to negotiate disputes within the framework of arbitration or mediation. These processes can result in a relatively speedy resolution and prompt payment. If desired, they may also be used to promote the continuation of the business relationship between the client and the debtor.
Please read about the following topics of interest to our collection clients.
- Our Collection Practice
Want to know more about the most efficient means to collect monies due to your business? Call James S. Friedman, LLC, at 800-361-6554 (toll free) or contact us online to learn how quickly you can get through the collection process and obtain payment.