Collection Action Attorneys in Orange County
A successful business model and business oversight involves turning a profit. A business will not last long if it is not bringing in a profit and therefore any unpaid invoices can have a drastic impact on the future of your business. It is important to address any collections issues head-on to prevent business dissolution and it from winding up in financial disarray and begin the process of forcing payments from debtors. If you have not received payment for invoices, you may want to consider consulting an Orange County collection action attorney.
Businesses and creditors alike have different options when a consumer does not pay an invoice or files for bankruptcy without paying. It is important to consult with an attorney prior to taking collection actions because California law is extremely specific in dealing with collections. If you press too hard to receive a payment, you may be violating consumer rights laws within the state. An experienced attorney knows which laws must be followed.
To begin with, a creditor must go to court in order to receive a judgment by the court to allow the creditor to demand collections on the party owing the debt. This may occur through wage garnishment or a levy on the debtor’s bank accounts. Both require a court’s approval and must follow specific California laws which outline the procedures for collecting any amounts due.
Wage garnishment is one of the most common debt collection methods and occurs by requiring the debtor’s employer to withhold a certain amount from the debtor’s paycheck each month. California law allows up to 25% of a worker’s wages to be garnished through this method. However, 401(K) plans and other retirement account plans are exempt from this garnishment, and therefore some debtors may attempt to circumvent debt collection by placing funds in these accounts.
As a creditor, you may also go the route of levying on a debtor’s financial accounts. This allows a creditor to take any money owed to them, and can include a levy on a debtor’s property as well. There are rules and regulations attached to any levy or attachment, and a creditor cannot take the full amount of assets or property, and must be wary of certain assets which are exempt from levy.
Boyd Law | Orange County, California Business Law Attorneys
If you are facing the unpleasant situation of collecting unpaid bills, you are not allow. Hundreds of businesses face this same dilemma each day, and many of them turn to collections attorneys to help settle the matter. The attorneys of Boyd Law have years of experience in handling business disputes of all natures, including collections actions. Our attorneys will work to resolve your dispute as efficiently as possible, without any detrimental occurrences. Contact our Orange County office today for your initial free consultation.