When a company winds down and closes its doors, it can frequently leave creditors holding a bill. Your debtor goes out of business. Generally, California law grants wide deference to the protection provided by corporations to shareholders and directors, and grants similar immunity to new companies. It erects a wall against the former company’s creditors, […]
What is a Foti Message Within FDCPA Compliance
The Fair Debt Collection Practices Act (“FDCPA”) is a federal law intended to protect consumers from unscrupulous or harassing debt collection practices. The FDCPA was enacted in 1978, before the Internet, or even cell phones. Therefore, especially with regards to technology, the FDCPA can be less than clear. This article will discuss the rather surprising […]
Why Use a Credit Application
1) Protection From Bad Debt At the inception of a new business relationship, it may be difficult to imagine that this exciting new client will one day become a frustrating debtor. However, all debtors start out as customers. It is crucial to protect yourself from the beginning, and it is easy to do so with […]
Certificate of Insurance – Do You Ask for This?
This article is reprinted with permission from CreditBytes. The scenario: Your company has a customer that has consistently ranked in your top 20 for the past 5+years, which accounts for a significant portion of your company’s annual sales. Recently, the customer has placed another significant order along the lines of what they’ve been submitting regularly […]
The Out of Business Corporation and Successor Liability
by: David E. Greenberg In discussing the out of business corporation, one must first understand the nature of corporations in this country. The U.S. corporation is a legal entity unto itself, separate from the principals or directors. In other words our law regards a corporation as an actual person, complete with its own life, health, […]
Countersuit and Consequence
Just when you thought everything about your lawsuit against a U.S. debtor was going smoothly … BANG! The defendant files a countersuit against your company. What is a countersuit? It’s a lawsuit filed by a defendant against a plaintiff in direct response to a suit brought against the debtor by that plaintiff. The countersuit asserts […]