Reputable Lawyers in Newark, NJ Assist with Unsecured Collections

Cost-effective services to recover amounts owed businesses and professionals

Collecting unsecured debt can be a difficult proposition. Since there is no collateral to attach, you must often go through additional steps to enforce your right to recovery. Before you consider writing the debt off as a loss or selling the debt for pennies on the dollar to a collection agency, consider how Rothbard, Rothbard, Kohn & Kellar can help. Since 1978, our commercial litigation attorneys have helped a wide variety of businesses and professionals in Essex County collect unsecured debts from delinquent clients. Our highly professional and reputable attorneys never engage in questionable practices that might expose you to civil liability, and our cost-effective services often provide a much greater return than other available options.

Special difficulties in collecting on unsecured debt

Unsecured debt is the extension of capital to a borrower without designating a specific asset as collateral. Our attorneys regularly pursue payment of unsecured debt from:

• Bad checks
• Construction contracts
• Credit card balances
• Medical bills
• Professional services bills
• Student loans
• Retail charge accounts

We act in full compliance with the federal Fair Debt Collection Practices Act and other applicable state and federal laws. You need never fear that we will use deceptive, harassing or abusive practices that would reflect poorly on your reputation or expose you to civil liability.

Asserting creditors’ rights in unsecured transactions

Since unsecured transactions have no collateral to attach, the process involves getting a court judgment on the debt and then petitioning the court to enforce collection through various means, such as:

• Income garnishment — The court can order a debtor’s employer to garnish wage or salary payments and send a certain amount each pay period to the creditor.
• Property liens — The creditor can ask the court to impose a lien on real property the debtor owns wherever the court has jurisdiction. This remedy is frequently applied in the construction industry when a property owner refuses to pay a contractor, subcontractor, or supplier. The lien gives the creditor an interest in the property, so the owner cannot sell without using proceeds to repay the lien holder. Under certain circumstances, lien holders can also get an order to execute a lien, which forces a sale of the property for repayment.
• Property levies — Similarly, a creditor can get a court order to attach personal property that has value sufficient to repay the debt.
• Assignment orders — Certain assets, such as anticipated tax refunds and life insurance policies with cash value, are not subject to property levies, but the court can issue an assignment order. The order goes to the source of the funds to be assigned with instructions that when the funds are released, they must go to the creditor rather than the debtor.
• Contempt proceedings — When a debtor has the means to pay, but simply refuses to do so, a court can find the debtor in contempt and order sanctions, which include fines, community service, and incarceration.

Results of collections procedures always depend on the circumstances of the individual debtor. Some will try to discharge unsecured debt through bankruptcy. If that happens, we assert your right to receive as much repayment as possible. But a debtor’s bankruptcy is not necessarily adverse to your interests. In fact, creditors often must force a debtor into bankruptcy through an involuntary proceeding to ensure repayment before assets are exhausted. Our experienced attorneys perform extensive analysis of the situation so you can understand the costs and benefits of your legal options and make the choice that is most likely to help you recover the maximum amount possible.

Contact our reputable legal team in Newark, New Jersey for unsecured collections

Rothbard, Rothbard, Kohn & Kellar employs efficient strategies to help businesses and professionals collect unsecured debts. Our Newark office is conveniently located at 50 Park Place on the 12th Floor, right across the street from Military Park and just one block southwest of the New Jersey Performing Arts Center. Call us at 862-227-8068 or contact us online to schedule an appointment.