Our Philosophy and Approach to Collection Work

When it comes to collection work – spotting issues, finding assets – there’s no substitute for preparation, preparation and more preparation.

The great boxing champion Muhammad Ali famously stated that

“The fight is won or lost far away from witnesses—behind the lines, in the gym, and out there on the road, long before I dance under those lights.”

It’s the same rule in B2B collections — winning does not begin in the courthouse, it begins in the office with debtor research, document review and attention to detail.

You can view our collection process in 3 separate stages:

    • Pre-suit – where we review your file and create a debtor profile;
    • Litigation – where we file your collection lawsuit and work towards judgment; and
    • Post Judgment Recovery – where we identify and seize assets to satisfy your judgment.

Throughout the collection process, we continue to gather information about the debtor, which begins with creating a debtor profile and continues post-judgment when we’re looking for the debtor’s assets.

Step 1: Pre-Suit – Reviewing Client File and Creating Debtor Profile

Our collection process starts with a thorough review of your background file, not just the unpaid invoices, but also all relevant

    • emails and other correspondence;
    • contracts;
    • credit applications;
    • other documents containing sales terms; and
    • all other relevant documents provided.

After thoroughly reviewing your background file, we use our own resources to create a pre-suit debtor profile.  We typically seek to:

    • verify the debtor’s still in business;
    • verify its address for service of the lawsuit;
    • verify its corporate status;
    • identify its principals;
    • identify other entities owned by the principals;
    • search internet and social media for information on the debtor and principals;
    • search public and private databases for information on them;
    • review existing judgments against them; and
    • search for possible real estate owned by them.
Step 2: Litigation

We then proceed to the actual litigation.  There are 3 common scenarios:

    • Settlement – Where you and the debtor reach an amicable resolution.  This can happen at any point – before the lawsuit, during it, or even after a judgment;
    • Uncontested Litigation – Where the debtor defaults (meaning it fails to answer the lawsuit), you submit proof of your claim and the court enters a default judgment; and
    • Contested Litigation – Where the debtor answers the lawsuit, you demand information from each other relating to the claims and defenses (called discovery), and the court enters judgment for one of the parties after determining the facts.

The purpose of a trial is to present evidence so the court can determine the facts, and then rule.

If the parties agree on the material facts, they can ask the court to rule without the need for a trial.  This is called summary judgment.

Litigation commences with the filing and service of the lawsuit.

In some fraud cases, we can seek to seize the debtor’s assets before judgment, i.e., while the case is pending. This is a called a pre-judgment attachment and the courts rarely grant them, but it can be a powerful tool when available.

If the case settles, we draft the paperwork to protect you.  For example, we make sure the agreement entitles you to a judgment if the debtor fails to pay you.

If the debtor defaults, we prepare the required paperwork and your proofs for a judgment.

And if the debtor contests the lawsuit, we exchange discovery demands and prepare your case for trial.  If the material facts are undisputed, we’ll generally forgo a trial if we can obtain a summary judgment.

Step 3: Post Judgment

After obtaining your judgment, we then seek to enforce it.  We typically do this by:

    • Recording judgment liens against the debtor’s real estate;
    • Identifying the debtor’s assets, through independent searches and requiring the debtor to disclose financial information (called post-judgment discovery); and
    • Seizing the debtor’s assets to satisfy the judgment.  

Read more about our Judgment Recovery services

Our business collections firm has offices in Cherry Hill and Hackensack and handles B2B debt collection matters in every county throughout New Jersey.

Request Judgment Collection Services

What Makes Us Different Our Philosophy and Approach to Collection Work

Please contact us if you have a debt collection matter in the State of New Jersey or if you have any additional questions or concerns.