Debt Recovery: Strategic Litigation and Judgment Enforcement

Every demand for payment must be calibrated to satisfy the Fair Debt Collection Practices Act (FDCPA) and state-specific consumer protection laws to ensure the creditor does not become a target of a countersuit. Our firm issues high-impact demands that clearly outline the legal consequences of non-compliance, often resulting in immediate settlements before a formal complaint is even filed. We ensure that every communication is documented to establish a record of the debtor's refusal to pay, which serves as a foundation for seeking attorney fees and costs in future litigation.

Before initiating a lawsuit, we conduct a deep forensic audit of the debtor’s footprint. This includes skip tracing to locate elusive individuals and asset mapping to identify bank accounts, real estate holdings, and ownership interests in other business entities. In the modern era, this also includes tracing digital assets and cryptocurrency holdings that debtors often believe are invisible to creditors. Knowing where the money is hidden before you sue is the only way to ensure that a future judgment is actually collectible.

In cases involving significant commercial debt, we often seek an ex parte writ of attachment. This extraordinary legal remedy allows the court to seize or freeze a debtor’s assets while the lawsuit is still pending. By securing these assets early, we prevent the debtor from liquidating their wealth or fleeing the jurisdiction during the litigation process. This creates immediate settlement pressure, as the debtor loses access to the very capital they were attempting to withhold.

Most debt recovery cases do not require a full trial. We utilize aggressive motion practice to secure a summary judgment, which is a final court ruling that the debt is valid and owed. By demonstrating that there is no genuine dispute of material fact regarding the existence of the debt, we bypass the delays of a traditional trial. This moves the case immediately into the enforcement phase, saving significant time and litigation costs for the creditor while establishing a fixed judgment amount.

If a business entity is insolvent, we look for evidence of commingling or undercapitalization to pierce the corporate veil. This allows us to hold the individual owners or parent companies personally liable for the debts of the defunct entity. We specialize in identifying the procedural failures, such as the failure to maintain corporate minutes or the unauthorized transfer of corporate funds for personal use, that expose the personal assets of the board and management to our collection efforts.

Once a judgment is entered, we immediately move to serve writs of garnishment on the debtor’s employer and levies on their known bank accounts. These actions are instantaneous and force the immediate transfer of funds to the creditor. In many jurisdictions, we can seize up to 25 percent of a debtor’s disposable income until the judgment, including all accrued interest and legal costs, is paid in full. This constant pressure often forces even the most stubborn debtors to negotiate a final settlement.

We record the judgment in every county where the debtor owns real estate, creating an automatic lien that clouds the title. This prevents the debtor from selling or refinancing the property without first satisfying the debt. In high-value cases, we may initiate a sheriff’s sale to forcibly sell the property to recover the funds. This process is complex and requires absolute procedural accuracy to ensure that the sale is legally valid and the proceeds are correctly distributed.

If a debtor refuses to disclose the location of their assets, we utilize a Debtor Examination. This is an evidentiary hearing where the debtor must testify under oath about their finances. If the debtor fails to appear or provides false information, we move for an order of contempt. Judicial sanctions for contempt can include substantial daily fines and even incarceration until the debtor complies with the court's demands. This is the most effective tool for breaking through a debtor’s wall of silence.

If a debtor files for bankruptcy in bad faith, we initiate adversary proceedings to challenge the discharge of your specific debt. We argue that the debt was incurred through fraud, misrepresentation, or willful and malicious injury, which under federal law makes the debt non-dischargeable. This ensures that the debt survives the bankruptcy and remains collectible for life, often making you the only creditor remaining after the debtor emerges from the bankruptcy court.

Debtors often attempt to move money to insiders just before a judgment is entered. We utilize state and federal Uniform Voidable Transactions laws to sue the recipients of these transfers. We can claw back cash, real estate, and business interests that were transferred for less than fair market value, returning them to the pool of assets available for your recovery. The cost of pursuing these transfers is often offset by the significant increase in the ultimate recovery amount.