While commercial success is fueled by many factors, the most important factor of all is money. Without money, a business cannot continue to hire employees, manufacture products, accept new clients, implement policy changes, or expand its area of service. Unfortunately, businesses are sometimes denied appropriate payment for the goods and services they provide. Matters such as breach of contract and contract disputes can cause a catastrophic delay in the rendering of payments.
When this delay is allowed to drag over a duration of time, the aggrieved company continually suffers. The longer the aggrieved company is deprived of the payment or payments it was expecting, the more that company is hindered in its everyday operations. The longer everyday operations are hindered by diminished financial resources, the less able that company becomes to meet deadlines, quotas, and other important obligations and responsibilities. The bottom line is that the longer a commercial debt is permitted to go unsatisfied, the more damage it causes.
Why Choose a Montgomery County Commercial Collections Attorney From Berkowitz Klein?
At the law offices of Berkowitz Klein, our legal team has over 30 years of experience representing corporations, partnerships, LLCs, and individuals in the full spectrum of business litigation matters. For more than three decades, our business debt collection lawyers have been helping men, women, and commercial entities collect delinquent debts so that they can resolve their conflicts and move forward in the professional world.
While business debt disputes can sometimes be resolved through mediation, arbitration, or negotiation between the parties involved, there are many cases where litigation is the most effective path toward collecting a delinquent debt. However, representing yourself or your business in a Pennsylvania court without the aid of an aggressive and experienced Montgomery County commercial collections attorney is not in your best interests. The state and federal regulations governing debtor protection, creditor rights, judgment liens, wage garnishments, and contract disputes are highly complicated and continuously evolving. Additionally, there are many instances where federal and Pennsylvania statutes come into conflict, which only adds to the confusion of pro se litigation.
Our attorneys have been specializing in commercial litigation and business law for decades. No matter what the nature of your debt collection issue may be, we have been there before. At Berkowitz Klein, we know how to help your business succeed.
Thanks to numerous laws enacted to protect debtor rights, collecting a business debt can be challenging. However, there are effective techniques for commercial entities and creditors to obtain the payments they are entitled to. One of these techniques is imposing a judgment lien. What are judgment liens, and how can they be utilized?
A judgment lien is a type of security interest which can be attached to a physical property or a bank account. Liens are commonly used by creditors who are attempting to recover financial losses from debtors who fail to render payments. When a lien is filed against a piece of property, the owner cannot sell the property until their debts are paid off. When a lien is filed against a bank account, the funds can be frozen until the debt is paid.
To file a judgment lien against another company, you must first obtain a judgment in a commercial dispute, meaning that commercial litigation is prerequisite to filing a lien. Once you have been awarded a judgment, if the debtor still refuses to pay, the lien may then be placed on the nonpaying company’s property or accounts. Under the statute of limitations, a lien may be effective for up to five years, after which the judgment must be revived.
Wage garnishment is another method of collecting on a commercial debt. While wage garnishments are strictly regulated in Pennsylvania, when effectively utilized, they can still be a useful tool to help businesses recover monetary losses from nonpayment.
In Pennsylvania, wage garnishment can be used in matters involving delinquent student loans, unpaid child support, and back taxes. The state caps wage garnishment at 10%.
Sometimes, the failure of one company to pay another company results from a contract dispute, which may involve an allegation of breach of contract. For example, a company could refuse to pay their debts due to a belief that the creditor company failed to live up to their end of the contract. When payment and nonpayment ride on the interpretation of contractual language, close and careful evaluation of the terms therein is critical. At Berkowitz Klein, our attorneys have extensive experience drafting, revising, and enforcing a wide variety of commercial contracts, including but not limited to:
- Distribution Agreements
- Employment Agreements
- Purchase Orders
- Sales Agreements
- Service Contracts
- Shipment Orders
If your Montgomery County company has been undermined by inability to collect a payment, you do not have to resign yourself to the financial losses you have incurred. You may be able to recover your losses and obtain payment through commercial litigation. To schedule a private consultation with a highly experienced Montgomery County commercial collections lawyer, call the law offices of Berkowitz Klein at (610) 889-3200 (ext. 1), or contact us online today.