Winning a court case and being awarded damages against a party does not necessarily mean that the court battle is over. Unless the losing party is willing to pay you on the judgment, you will have the obligation to collect it yourself. There are legal tools to help with the process, but there is no
Minneapolis Collections Lawyer
Is your business owned money? Debts to a company can crush the company.
We represent creditors in collecting large debts. We also represent debtors, ensuring their rights are protected.
We have represented professional service firms, medical practices, small business owners, contractors, and sub-contractors. Debts may involve non-payment of loans, fraud, large unpaid invoices, and other debts.
We have refined our approach over the years to use best practices that improve the odds that our clients recover funds owed to them. Often, we will send out an initial demand for payment. Sometimes, this demand on our law firm’s letterhead motivates the debtor to pay. More often, the debtor refused to pay, so we file a lawsuit. We don’t waste time; statistics indicate a debt is less likely to be paid as it ages.
Once the lawsuit is filed in court, and the debtor is notified of the lawsuit and required to respond, usually within 20 days. If the debtor does not respond to the lawsuit, we can file a motion for default judgment. In essence, this means we ask the court to let you win the lawsuit by default because the debtor failed to timely respond.
At this point, the collection process may begin despite the fact that the debtor is still not cooperating. The court may either garnish up to 25 percent of the debtor’s wages, or it may require the selling of the debtor’s assets such as car, real estate, or bank accounts (known as a lien) to satisfy his debts.
Filing a lawsuit is often best course of action you can take when you are owed money and the debtor won’t pay, because a lawsuit forces a debtor to respond. The one concern is if the debtor has assets, or if your lawsuit will be wasted effort because the debtor files for bankruptcy, discharging your debt.
Commitment to Excellence
We understand each case is different, so we listen carefully to our clients’ unique circumstances and goals when preparing a strategy with them. Collaborating closely with clients in strategy development is critical to assure our work aligns with your budget and expectations.
Collections Checklist: How to Collect Debts to Your Company
Debt collection can be messy. However, at some point every business owner will need to deal with unpaid accounts. Fortunately, certain steps can be taken that may help such collection run smoothly. There are both passive and formal ways of attempting to collect debt, as well as preventive action that can be taken to help
Debt Collections: The Doctrine of Unclean Hands
On February 17, 2015, the Court of Appeals held in a published decision that “[a] district court does not abuse its discretion by granting equitable relief to a party with unclean hands if the party has purged herself of her adverse equity.” Brown v. Lee, --- N.W.2d --- (Minn. Ct. App. 2015). The facts of
The Fair Debt Collection Practices Act (“FDCPA”)
The Fair Debt Collection Practices Act or "FDCPA" was established as legal protection for consumers against abusive debt collection practices. The statutes’ purpose is to eliminate abusive practices in the collection of consumer debts, promote fair debt collection, and provide consumers with an avenue for disputing and obtaining validation of debt information in order to
Creditors Can Get Inherited IRA Funds, Supreme Court Says
US Supreme Court Rules that Inherited IRA Funds are Not Exempt from Claims of Creditors in Bankruptcy Cases On June 12, 2014, the United States Supreme Court ruled in the case of Clark v. Rameker that inherited individual retirement account (IRA) funds are not “retirement funds” for purposes of the exemption of certain assets from
Is my 401(k), IRA, or pension safe from creditors and lawsuits?
Many believe that creditors can’t touch their retirement savings. But in many states—including Minnesota—that’s frequently not true. If you have an ERISA-qualified 401(k) or pension plan, your savings are probably safe from creditors. In such plans, your money generally has complete protection under federal law from garnishment, attachment, and other creditor remedies, so long as
What Debt Collectors Can and Can’t Do in MN
It is very common for people who fall behind on their bills to have trouble with collection agencies. While collection agencies have a number of options when it comes to collecting debts, the law sets some limits on their conduct. The Fair Debt Collection Practices Act is a federal law which regulates the conduct of
Minnesota Department of Revenue Levies
When a debtor does not voluntarily pay a debt, enforced collection action is used by the Minnesota Department of Revenue in an attempt to collect the debt. A levy (also referred to as Levy and Distraint) is an administrative collection tool. It gives a collector with delegated authority the power to take property and the
Credit Repair and the Credit Repair Organizations Act
Consumers with poor credit scores often consider using a credit repair company to help fix their credit scores. Credit repair companies can be beneficial in helping guide you through the credit repair process, informing you of your options, and working with you to fix your poor credit scores. However, you should carefully consider and thoroughly
Other Useful Minnesota Uniform Transfer Act Information
It is important for an attorney to counsel a client about the transfer of assets leading up to bankruptcy. A client needs to understand the sooner an attorney knows about a transfer the less likely it will cause harm to the client. It is important to understand the exemptions allowed to be taken under state
Practical Examples of Fraudulent Transfers
A potential fraudulent transfer problem will arise on a regular basis in a bankruptcy proceeding. A typical transfer that may come under scrutiny would be gifts to family members that occurred recently. This could take the form of a parent purchasing a car for their child, which is put in the child’s name. Or paying
Important Minnesota Cases Involving Fraudulent Transfers | MUFTA
Minnesota has had several major cases involving fraudulent transfers. One case close to point deals with the drastic implications of attempting to take advantage of a bankruptcy proceeding. In Tveten, the debtor had 19 million dollars of debt owed to creditors. On the eve of bankruptcy, he transferred his remaining $700,000 from non-exempt to exempt
Potential Consequences of Violating MN Uniform Transfers Act
These cases generally result in voidance of a transfer. The debtor will want to be careful in a transfer that may be questionable. In order to receive bankruptcy relief a debtor must act in good faith. If a transfer or transfers are particularly egregious, a judge may find the debtor lacks good faith and has
Relevant Information | Minnesota Uniform Transfer Act (MUFTA)
MUFTA is codified in Minnesota Statute’s §513.41 - §513.51. As the fight is generally between the creditor and the transferee, we must understand what a transfer is, and what constitutes an asset. The definitions section is §513.41. A transfer can take place in just about every manner. ““Transfer” means every mode, direct, or indirect, absolute
Overview of the Minnesota Uniform Fraudulent Transfer Act (MUFTA) (UFTA)
MUFTA is codified in Minnesota Statute’s §513.41 - §513.51. MUFTA is Minnesota’s adoption of the Uniform Fraudulent Transfer Act (UFTA). When the legislature adopted the Act it was nearly identical to the Uniform Act itself. While the first version of UFTA came into existence in 1918, the law of fraudulent transfers has been around for
How to Collect a Debt | Debt Collection 101 | Get What You’re Owed
Minnesota collection attorney Aaron Hall describes the debt collection process and explains how you can collect debts owed to you. We frequently receive calls from people who are owed money. They want to know what are their rights, what are their legal options, how do they get the money that is owed to them. Well,
Attorney’s Liens in Minnesota
I. INTRODUCTION: Pay Your Bills! As a general rule, it is always a good idea to pay your bills. It is particularly important to pay your legal bills. And I’m not just saying that because I work in the legal field. While it is true that the costs of legal services can be quite high,
The Rights of Creditors With Regard to Corporate Debts
Obtaining financing is a crucial part of most companies’ growth and success, and many lenders advance money in hopes of it being repaid at a profit. Even with financing, however, businesses often fail, making it difficult for lenders to get their money back. Most creditors’ rights are contractual, but Minnesota law provides a few other
Minneapolis Debt Collection: Steps for Garnishing Wages of a Debtor
If someone owes you a debt, but refuses to pay, there are things you can do to collect that debt. If you know that the debtor has a steady income, you can garnishes the debtor’s wages. If you don’t know if the debtor is employed, you can follow legal procedures for debt collection and obtain
The First Steps Before Garnishing | Minneapolis Debt Collection
Steps by Peter Rosbjerg With certain exceptions, often involving fraud or deceit of the debtor, a creditor may not garnish assets of a debtor without first obtaining a judgment against the debtor. There are many other steps a debtor must take before garnishment, including docketing the judgment. A creditor also must find out where there