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Business Debt/Suing for personal loan

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Expert: - 11/19/2008


Question
He owes me $7,500. He has been collecting Calif Unemploymnent Insurance for almost a whole year now. All the while I have not received a dime from that income. He says "too many things come up." He owes no property (he lives with parents) and all he has to his name is a $9k car.

I don't doubt I will get the Judgement forcing him to pay me via Small Claims. I DO fear that he intends to file for bankruptcy thereafter and that the judgement (order to pay) will be discharged.

How is this fair? I am not a lending business. I have no insurance. No one protects ME from borrower's irresponsibility and broken promises.

My question: Can I be tactful as follows: I shall separate the claims into two separate suits, $3,750.00 each. I will await the bankruptcy and accept that they will wipe it out. Once that's done, I will re-sue in a separate case for the other $3,750.00. Since he can't do bankruptcy twice, he will have to pay me the $3,750.00 and aaaall that interest that will accrue because he's so 'broke.' At least I will recover a good chunk, rather then see the whole broken promise of $7,500.00 go down the drain.

What do you think?

Best regards,

Rafael

Answer
Rafael,
If he claims your debt in his bankruptcy, you would not be able to do that. You might want to get a free consultation with an attorney to find out what you can do since you fear he may file bankruptcy.
If you do sue and receive a judgment, you can attach his vehicle if that is his only asset.
I hope this helps, I would act quickly.
Sincerely,
Michelle Dunn

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Michelle Dunn

Expertise

As one of the Top 5 Women in Collections, one of the Top 50 Collection Professionals, and winner of the Business Excellence award, I can answer any questions about debt, debt collection, improving business credit, creating a credit policy, enforcing a credit policy and collecting on past due accounts. I can also answer questions in regards to starting a debt collection agency since I have been a bill collector for over 24 years, started and ran my own collection agency for 8 years, and maintain my 12 year old Credit & Collections Association for members of the credit & debt collection industry. I am also the author of the popular and award winning book "Starting a Collection Agency, how to make money collecting money" now on it's 3rd edition. This book has won a the Writers Digest self published award as well as the New York Book Festival Award. I am a repeat contributor to the Wall Street Journal, and have been featured on NPR, CNN, as well as many other national radio and television programs. I have also been featured in national publications such as the Wall Street Journal, Forbes, Smart Money, MSNBC and much more. I have 17 published books to my name and am an accomplished speaker and consultant. I currently write 9 columns for newspapers, magazines and online portals worldwide.

Experience

I have over 24 years experience in debt collection, I started and ran my own collection agency for 8 years and I am the founder & owner of my Credit & Collections Association that I founded in 1998. www.credit-and-collections.com

Organizations
My Credit & Collections Association, I was also a member of the American Collectors Association and Plymouth Chamber of Commerce for 11 years. I am a member of many writing groups as well as my local Women Inspiring Women chapter. I am a member of Know More Media as an expert for their blog on business credit.

Publications
Business NH Magazine, Smart Money Magazine, MSNBC, CNN, Forbes.com, The Wall Street Journal, Home Business Magazine, Entrepreneur Magazine and website, many books, newspapers and television programs as well.

Education/Credentials
I have written 17 books in my collecting money series and one for Entrepreneur Press called the Ultimate Credit and Collections Handbook. My newest book is being published by John Wiley & Sons in May titled, The Guide to Getting Paid, how to weed out bad paying customers, collect on past due balances and avoid bad debt. This book is also being sold to many colleges as a text book.

Awards and Honors
My book Starting a Collection Agency, how to make money collecting money won an award from Writers Digest and the 2007 New York Book Festival in the "How to" category. I have won 2 awards from Dun & Bradstreet and Governor Jean Shaheen. I was nominated as one of the Top 5 Women in Collections twice as well as having been selected as one of Collection Advisor's Top 50 Collection Professionals by my peers.

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