Monday, June 23, 2014

Debt Collection Tips: identify the proper party.

One of the most important steps in the debt collection process is determining the proper party to sue.

In the case of an individual, the creditor must take great strides to ensure that the individual debtor's name is properly spelled, along with the debtor's street address and social security number.

In the case of a corporation, partnership or limited liability company, the exact legal name should be obtained. The legal status of a debtor may be confirmed through the Secretary of State's office. The creditor may also want to run a business credit report, such as a Dun and Bradstreet or Equifax report.

Where a creditor has obtained a personal guarantee of a corporate debt from an individual, it is equally critical that all the same information is obtained for that person.

The identity of a potential debtor should be verified immediately upon consideration of extending credit. Many businesses' credit departments are lax in having account applications signed and reviewed. This first encounter with a debtor is the right time to verify the debtor's status.

Gathering as much information as possible about a debtor will assist in collecting debt from the debtor. At every stage, from pre-suit negotiation to institution of litigation to enforcement of judgment, the exact legal name of the debtor will prove valuable to collection. Liens, credit bureau reports, and attachments of property will prove successful if accurate information is provided.

— by Richard A. Klass, Esq.

-----------
copyr. 2014 Richard A. Klass, Esq.
The firm's website: www.CourtStreetLaw.com
Richard A. Klass, Esq., maintains a law firm engaged in civil litigation in Brooklyn Heights, New York.
He may be reached at (718) COURT-ST or e-ml to RichKlass@courtstreetlaw.com with any questions.
Prior results do not guarantee a similar outcome.

Friday, June 13, 2014

Buying Your House Does Not Have to Be a Hassle

A Primer on Considerations for the Buyer.

A buyer of real estate must be aware of a number of issues before entering into a Contract of Sale. These issues can include:

A. Pre-contract tests and inspections
The buyer may elect to conduct a number of evaluations regarding the quality of the house to be purchased, including: a) termites; b) lead paint; c) engineer's report; d) radon; e) environmental study; f) appraisal; and g) neighborhood study (e.g., New Jersey now requires disclosure of any sexual offenders in the area). Many of these tests will provide key information regarding the house which may be needed for several reasons, including whether the house should be purchased, what items the seller should repair or cure prior to closing, or what concessions should be made in the purchase price.

B. Mortgage requirements
The buyer may want to contact a mortgage lender or mortgage broker to see if s/he is qualified for a mortgage. The lender may require a substantial down payment or income qualifications. The lender may offer mortgage loans at different rates, based upon the type of property; income or no-income verification; or payment or "points" up-front.

C. Title considerations
The buyer will conduct an inspection of the title records concerning the property to ensure that the property is free of all liens and encumbrances, and that the description of the property in the Contract of Sale exactly matches the property as listed on the county's records. They buyer will retain a title company to conduct the search, and will purchase title insurance to cover any possible claims. Various issues may arise concerning title, including: a) Mechanic's liens; b) bankruptcy; c) Environmental Control Board violations; d) Fire Department violations; e) Certificate of Occupancy issues; f) issues with the "chain of title" from the seller or prior owners; g) tax arrearages or tax liens; and h) Judgments against prior owners. Many of the various title issues can be resolved prior to, or at closing. In some situations, corrective action will be needed to pass "clear" title.

— by Richard A. Klass, Esq.

-----------
copyr. 2014 Richard A. Klass, Esq.
The firm's website: www.CourtStreetLaw.com
Richard A. Klass, Esq., maintains a law firm engaged in civil litigation at 16 Court Street, 28th Floor, Brooklyn Heights, New York.
He may be reached at (718) COURT-ST or e-ml to RichKlass@courtstreetlaw.com with any questions.
Prior results do not guarantee a similar outcome.

Tuesday, June 3, 2014

Debt Collection Tips: Suing the proper corporate entity

Many times, a debtor will be identified as the "XYZ Company." Without further information, the creditor cannot know whether the entity which owes the debt is a corporation, sole proprietorship, partnership, or limited liability company.

It is necessary when considering suing a debtor that the proper legal entity be identified. In the case of a corporation, the name must include either "Inc.," "Corp.," or "Ltd." A limited liability company must include "LLC." A partnership or sole proprietorship can be identified from a business certificate filed in the County Clerk's Office. Other forms of legal entities include limited partnerships, professional corporations, and professional limited liability companies.

The necessity of suing the proper party is to ensure that when it comes time to enforce the prospective Judgment, the debtor will be properly identified and the debtor's assets will be leviable. Further, it will help eliminate defenses concerning the jurisdiction of the court over the proper party.

To assist in collection against the proper entity, the creditor should obtain the exact name of the debtor and its type of organization at the onset of the transaction. A search through the records of the Secretary of State's Office can verify the information provided by the debtor. The creditor may also request that the debtor provide a copy of the Certificate of Incorporation or Business Certificate of the entity. In fact, this is a common requirement of a bank when a debtor opens a bank account.

— by Richard A. Klass, Esq.

-----------
copyr. 2014 Richard A. Klass, Esq.
The firm's website: www.CourtStreetLaw.com
Richard A. Klass, Esq., maintains a law firm engaged in civil litigation in Brooklyn Heights, New York.
He may be reached at (718) COURT-ST or e-ml to RichKlass@courtstreetlaw.com with any questions.
Prior results do not guarantee a similar outcome.