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DEBT COLLECTIONS

Stark Law can help with Debt and Retail CollectionA major part of the practice is as a collection firm. We work closely with accountants, title companies, insurance agents, and other business professionals. Together, our collection team is able to identify and locate assets hidden by debtors. By using sophisticated debt collection techniques such as lawsuits against third parties for fraudulent transfers and filing receivership motions, we are able to recover money for our clients that other firms miss.

 

RETAIL COLLECTIONS

Retail and judgment debts are those that are owed by consumers. These accounts are from consumers that owe you or your business for work you completed for them or products that you provided to them. These are very tricky to collect since there are many pitfalls under the Fair Debt Collection Practices Act ("FDCPA") This statute give consumers rights that a debt collector must respect. A collector who unwittingly violates these statutes can not only get himself sued, but his client as well.

 

In normal retail debt collection, we typically use the following post judgment debt collection techniques:
  • We issue Garnishment for wages, bank accounts and other sources of funds
  • We obtain Writs of Seizure of Property. Once we know what assets the debtor has, we send a court officer out to seize and sell these assets. In many situations, this pressure on the debtor is enough to convince a debtor that we are very serious about collecting your debt.
  • We serve subpoenas on debtors to appear in our office with tax returns, titles, deeds, and bank account statements. If the debtor fails to appear, we obtain an arrest warrant. Again, in many instances, debtors find this technique quite persuasive.
  • We obtain Orders for Receivers. A receiver is an individual who "steps into the shoes" of a debtor and/or his business to run the debtor's affairs. The receiver collects the assets of the business and pays funds over to you as the creditor.

 


 

FOR ATTORNEYS AND OTHER PROFESSIONALS

COLLECTING PROFESSIONAL FEES CAN BE RISKY IF YOU DO NOT KNOW HOW TO DO IT

One of the most common defenses to a lawsuit for professional fees is the threat of a counterclaim for malpractice. Irrespective of whether there is merit to such a counterclaim, the professional must still inform her malpractice carrier if such a counterclaim has been filed. In some cases, the professional must even report the threat of a malpractice action to his insurance carrier. We are very sensitive to this issue. That is why we contact the debtor to find out why he has not paid our professional client’s fees. We try to develop a sense of whether the debtor has a genuine issue with the services provided or whether the debtor is simply avoiding the debt.

 

Many times, we have counseled a professional to wait for the statute of limitations to pass on any potential malpractice counterclaim before filing suit. In Ohio, the statute of limitations for a malpractice claim is one year from the last date of service Other times, we counsel our clients to file a lawsuit right away, without waiting for the statute of limitations to expire.

 

We advise our professional clients that even after the statute of limitations for a malpractice counterclaim passes, a debtor may still file an affirmative defense of malpractice. However, as an affirmative defense, the value of the malpractice claim cannot exceed the value of the professional’s underlying claim in the case.

Contact Stark Law Offices



419-684-5933



419-684-7040



Stark Law
5505 Tiffin Ave.,
P.O. Box 336
Castalia, OH 44824

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