As a creditor, missed payments can seriously affect your cash flow and your business. When those whom you have provided a service or a product to have not paid what they owe, you do have several options to get justice.
After going through the process of making contact with the debtor and making reasonable requests to obtain the debt, you may want to consider legal action. It is possible to initiate court proceedings, although creditors are often able to resolve the issue before reaching this stage.
What can court-based remedies lead to?
If the creditor decides to sue to collect the debt, they will be able to enforce any judgment that the court makes based on the case. This could lead to a judgment lien.
What is a judgment lien?
A judgment lien can only be made by the court. It is a ruling that enables the creditor to take possession of the debtor's property in order to cover the debt. Judgment liens can be put in place in many different circumstances and to cover many different types of debt.
What kinds of property can be used in a lien?
The judge will decide what property to place the lien upon. They may choose to put a lien upon a car or boat, for example. It can even be possible for the judgment creditor to seize the debtor's bank account or garnish wages in order to gain back the unpaid debt.
If your business is struggling because you are owed money, it is important to look into the options you have to gain back the debt. Acting quickly is important in order to get the results that you deserve.