Representing Creditors When Loans Go Bad
Creditors are in a difficult position. They are often forced to extend credit in situations they would normally avoid. Then, when these loans go bad and the lender isn’t paying, mountains of regulations handcuff creditors, making it extremely difficult to collect without exposure to lawsuits or legal violations. As a lender or creditor, it is important to work with an experienced attorney who knows the legal landscape of collections and can fight to get the maximum possible payout on the credit you’ve extended to lenders.
Sam Grossack, attorney and founder of the law firm Grossack Law Group, represents lenders in collections matters. He is licensed to practice in both Rhode Island and Massachusetts, and he works with clients throughout both states in a range of collections matters. By handling all aspects of accounts receivable, attorney Grossack creates tremendous efficiency and savings for local businesses compared to them handling these matters on their own. Attorney Grossack operates his own real estate group as well as the law firm, so he brings a thorough understanding of the legal areas where collections overlap with real estate law matters.
The firm represents creditors in actions involving late payments. There are numerous options for getting results in these cases:
- Breach of contract claims: This is often the first step in collections. Bringing a lawsuit for breach of contract can get the ball rolling with injunctions, judgments and court orders.
- Liens: One option is to put a lien on the debtor’s home. There are different types of liens, but they give the creditor some rights and stake on the property. In some cases, you could have first dibs on getting repaid if the owner sells, in more extreme types of liens, you might be able to liquidate the property.
- Wage garnishments: With a court order, a creditor can garnish a debtor’s wages, taking a certain amount off the top of every paycheck to ensure regular payment. Usually a wage garnishment amount will not be equal to what actual payments would be, but it is still a helpful step toward getting compensated.
- Foreclosures: In some extreme cases, it is possible to foreclose on a property to obtain full payment or close to full payment for the outstanding debts.
The right approach for collections actions depends largely on the court and the type of judgment you get in your breach of contract claim. These are all complicated, time-consuming actions. Attorney Sam Grossack has the knowledge and experience to help you collect on arrearages.
Contact Grossack Law Group
The best first step when a debtor is in arrears is to talk with a lawyer who knows the collections and can help you. Call the firm today at 617-829-9927 or contact the firm online to schedule a consultation.