When a business expects to receive a given service, product, or amount of money based upon the terms of a contract, it can be financially catastrophic when the delivering company fails to meet those terms in a complete and timely manner. Goods, services, and profits are the fuel which businesses run on, and when a company is deprived of any one of those resources for a sustained period of time, the consequences to the overall health of that company can be devastating. In the short term, the aggrieved company misses out on the product, service, or funding it was rightfully expecting. In the long term, this immediate loss can trigger delays in production, problems with other contracts, or a whole host of other negative effects — and all of it can snowball together to create a vicious cycle from which it can seem impossible to emerge unscathed, if at all.
At Berkowitz Klein, our commercial collections attorneys have been practicing in Doylestown, PA and throughout southeastern Pennsylvania for nearly three decades. No matter how challenging, frustrating, or complicated your commercial collections issue may seem, you can rest assured that with our 25-plus years of experience both in and out of the courtroom, your business is in good hands with Berkowitz Klein.
The Statute of Limitations
The statute of limitations is similar to a ticking clock. The statute of limitations is a legal term for the period in which businesses (or individuals) may pursue litigation. Once the statute of limitations has expired, claims become invalid from a legal perspective. In Pennsylvania, the statute of limitations pertaining to commercial debt collection is four years. While that may seem like an ample span of time in which to collect on a delinquent debt, it is never advisable to wait until the last minute; particularly because court dates can be widely spaced, and must be strictly obeyed. Therefore, the sooner you initiate your commercial collections claim, the safer you will be within the statute of limitations — and, of course, the less stress you will have to deal with.
A judgment lien is a security interest applied against a property, whether it is physical property, or even a company bank account. In Pennsylvania, judgment liens may be levied against companies which are delinquent on their commercial debts as a means of obtaining restitution for precious time, money, or goods and services that have been lost.
To utilize a judgment lien as a means of replacing lost finances, a judgment must first be awarded in a commercial dispute. This means that a lawsuit must be filed, advisably with the assistance of an experienced commercial collections attorney.
Once the lien has been granted, the lien can then be filed against the company which has failed to pay its commercial debts. After the lien has been filed, a writ of execution must be obtained from the court where the judgment was originally granted as a form of proof. The writ of execution will allow a creditor to apply the lien against a debtor company’s property, be it physical or financial.
Attempting to collect on a delinquent commercial debt without skilled legal experience can be a nightmare. Our attorneys are always ready and available to help Doylestown businesses file lawsuits, mind the statute of limitations, and obtain judgment liens and writs of execution. No matter how daunting your commercial collections task may seem, Berkowitz Klein can help.
Contact us online, or call our law offices at (610) 889-3200 (ext. 1) to discuss your options with a Doylestown, PA commercial collections attorney.