Celebrating 10 years! 2007-2017

The joys of debt collection

I've only been doing this a few years and overall it is ok b mcacollector07/12/17
Sounds shady, like the debtor simply opened up a new account onehell07/12/17
You're absolutely right! Thanks Onehell! mcacollector07/12/17
They're messing with you. Tell him to provide proof you're n fettywap07/12/17
There is a legal remedy for this. The debtor claims to have jeffm07/12/17
Conditionally release the funds sounds like the easiest rout vohod07/12/17
mcacollector (Jul 12, 2017 - 5:39 pm)

I've only been doing this a few years and overall it is ok but days like today make me want to throw my computer out the window and storm out.

I have a business debtor's bank account frozen due to my judgment/ levy and I am working out a settlement with the debtor's counsel who is pretty cooperative. Someone who does business with the debtor has (allegedly) sent several "accidental" wires to the frozen bank account which cannot be reversed by the bank due to my levy. As a result of their alleged mistake, the business associate's counsel is badgering me to release funds back to them and will litigate if necessary. My position is "on what planet do I have any obligation to work with you on this? I have no obligation to you or your dumb client who can't send a wire to the correct account and I will not release a dime until I have my settlement agreement finalized and executed."

Am I wrong? Am I supposed to care where the funds come from (assuming they're not exempt funds) and whether they arrived in my levied account erroneously, or not?

Reply Like (0)
onehell (Jul 12, 2017 - 5:56 pm)

Sounds shady, like the debtor simply opened up a new account somewhere that you don't know about and told all his customers to start paying him there. This payer forgot and that's the real "accident."

I think I would want to get the customer who allegedly committed this "accident" under oath saying that the entire payment was accidental, not just intended for some secret account the debtor has. And depose debtor about same.

That said, you are levying defendant's assets. So if Defendant REALLY isn't entitled to the funds then neither are you and you don't want this third party coming after you for conversion or interference with contractual relations or whatever. So in short I'd do a pretty thorough investigation of their claim but I wouldn't dismiss it out of hand. It might even be a tipoff to the existence of other accounts you wouldn't have otherwise known about, and thus a blessing in disguise.

Reply Like (0)
mcacollector (Jul 12, 2017 - 6:10 pm)

You're absolutely right! Thanks Onehell!

Reply Like (0)
fettywap (Jul 12, 2017 - 6:17 pm)

They're messing with you. Tell him to provide proof you're not entitled to the funds. Until then, keep the money. I don't think they could get attorney fees even if they did try to sue you.

Reply Like (0)
jeffm (Jul 12, 2017 - 6:47 pm)

There is a legal remedy for this. The debtor claims to have no interest in the funds in its account.
It can therefore interplead the funds and make your client and the customer defendants. The 2 of you can then litigate it.

Reply Like (0)
vohod (Jul 12, 2017 - 7:33 pm)

Conditionally release the funds sounds like the easiest route. But if the money is owed to Judgment Debtor and they freely put it in the account, too damn bad. In my state you can order financial disclosure as a post-judgment discovery tactic. Ask under oath if Judgment Debtor is owed money by these fellas. TL;DR: he will lie, so will these other fellas. Its collections

A deposition is practically speaking a huge risk as its most likely you are earning a modest commission (collections being collections).

Reply Like (0)
Post a message in this thread