Collections

New York Supreme Court at 60 Centre Street Think Settlement of Your Commercial Litigation Case from the StartIn New York State, only approximately 3 percent of all cases filed in Supreme Court are disposed of after a trial. If you have a business dispute, your goal is to come to a resolution as quickly and as inexpensively as possible. If you have been involved in a lawsuit before, I am sure you know why this makes sense.

As an attorney, one of my responsibilities is to discuss with you the costs of a lawsuit. The basic costs of a lawsuit may include the following:

  • Court Costs
  • Attorney Fees
  • Expert Witness Fees
  • Court Reporters
There are emotional and economic costs to you and your company as well. You are going to have to come to my office and meet with me.  If you have an employee who has intricate knowledge of the case, they need to be available.  Your time is finite. The meeting that you could have conducted regarding a new marketing initiative is now centered on litigation. Let’s face it, litigation is not kind on your nerves.
After doing a basic cost benefit analysis, eventually you will likely settle. Litigation could take years. Key witnesses may be unavailable. The costs of a lawsuit may simply be too high.
That’s why it is vital to have a discussion with your attorney to discuss strategy. This would include an analysis of what would be best theory of the case so you can position your argument in a way that we can settle your case for the right price.
You should start the process as early as possible.  Here a couple of items to get your thought process flowing:
  • Put pen to paper (if you still use paper) and simply write the facts of the case. Think of all of strengths and weaknesses of your case.
  • Identify anyone who has knowledge of the case. Anyone means anyone. From your secretary to the salesperson who executed the agreement.
  • View your adversary. Does your opponent have deep pockets? If so, it would be wise to settle early.
  • Think about your true intentions of starting a lawsuit. Are you looking for money or is it personal?
  • Estimate the correct amount that you think that you are entitled to.  If you are being sued, think about how large a verdict can you expect.
Be aware that settlement is not a sign that you are caving in. You are doing yourself a disservice by not giving it a thought from the start.
The Law Office of Frederic R. Abramson represents plaintiffs and defendants in commercial litigation in New York. If you have a question, feel free to call me at 212-233-066.
 Think Settlement of Your Commercial Litigation Case from the Start

debt debt collector 2 What do Debt Collectors and Mortgage Companies Have in Common?

News that mortgage service providers failed to accurately document the seizure and sale of tens of thousands of homes have caused a public outcry.  Robo-signers for mortgage companies verified the truth of foreclosure documents without even reading them. The New York court system now requires attorney’s to verify foreclosure papers.

The mortgage companies are not the only businesses using robo-signers. It has come to the attention of  the New York Times that debt collection companies have been using robo-signers for years.  As an attorney, I have encountered the issue of robo-singers on thousands of occasions.  If your debt was verified (checked) by someone who does not have personal knowledge of your file, you are probably in luck.  The debt collector usually can’t prove your debt.

This is how it works.  Large banks, such as JP Morgan Chase and Bank of America sell a debt that is difficult to collect to a debt collection company.  The debt collection company purchases the debt for pennies on the dollar.

The debt collection party first attempts to send a threatening letter with a follow up phone call. When that fails to work, they hire a lawyer to help collect the debt. That is when the fun and games begin. The debt collection company doesn’t have first hand knowledge of the debt.   A robo-signer from the debt collection company then verifies the debt.

The Times reports the extreme example of a  robo-signer who sued his company for wrongful termination because his demand for a better pen was denied. He was signing so many documents that apparently bics hurt his hand.

The law firms are hoping that people fail to answer the lawsuit and try to collect on a default judgment.

If you have been sued as a result of an alleged debt you should:

  • Read the papers that are given to you to find out the party that is suing you.  Do you have any relationship with the business suing you?
  • What are you being sued for? Is it a credit card debt?
  • Ask for verification of the debt. Make the law firm provide paperwork proving that you owe the debt. Often they are unable to come up with it.
  • When was the lawsuit filed? Depending how you have been served, you must provide an answer within 20 or 30 days.
  • Has the debt been resold? If the debt has been resold to a company that is located outside New York, it is unlikely that they will be able to provide a witness at trial. Even if the debt is valid, they will be unable to prove it and you will win.
  • Where are you being sued?  If you are a New York resident and the lawsuit is in New Jersey, they do not have proper jurisdiction over you and you can have your case dismissed.

If you have been sued in New York for a debt, contact me at the Law Office of Frederic R. Abramson at 212-233-0666.

 What do Debt Collectors and Mortgage Companies Have in Common?

pastdue What You Should Do If a Debt Collection Law Firm Sues You

Thousands of New Yorker’s have fallen behind on paying their bills.  The New York Times reports that debt collection law firms have taken over the docket in New York Civil courts demanding repayment. In New York County, there are two courtrooms devoted to debt collection lawsuits.

The Times highlights the role of Cohen & Slamowitz, a Woodbury, N.Y. law firm.  The firm has been filing roughly 80,000 (wow!) lawsuits a year with only 14 lawyers.  Because debt collection law firms often do not have enough staff to vet their cases, the basis of many lawsuits is improper. In my experience, many debt collection lawsuits have incorrect information about the debtor and the amount in dispute.

Credit card companies have increasingly sold off debt to debt buyers. They sell the debt in bulk, usually for 5 cents or less on the dollar.  The  new owners of the debt then hire a law firm and then attempt to collect on the debt.  The law firms are hoping that people fail to answer the lawsuit and try to collect on a default judgment.

If you have been sued as a result of an alleged debt you should:

  • Read the papers that are given to you to find out the party that is suing you.  Do you have any relationship with the business suing you?
  • What are you being sued for? Is it a credit card debt?
  • Ask for verification of the debt. Make the law firm provide paperwork proving that you owe the debt. Often they are unable to come up with it.
  • When was the lawsuit filed? Depending how you have been served, you must provide an answer within 20 or 30 days.
  • Has the debt been resold? If the debt has been resold to a company that is located outside New York, it is unlikely that they will be able to provide a witness at trial. Even if the debt is valid, they will be unable to prove it and you will win.
  • Where are you being sued?  If you are a New York resident and the lawsuit is in New Jersey, they do not have proper jurisdiction over you and you can have your case dismissed.

If you have beens sued in New York for a debt, contact me at the Law Office of Frederic R. Abramson at 212-233-0666.

 What You Should Do If a Debt Collection Law Firm Sues You

1 judgment1 What are the Sheriff Fees for Enforcing a Judgement in New York?

If you obtain a judgment or a court order, the Sheriff is in charge for  - Enforcing Judgments & Court Orders. Listed below is information from the New York County Sheriff’s office regarding enforcement.

Property and Income Executions, Order of Attachment, Order of Seizure, et. al.
The Sheriff often works with litigants (including City agencies) who have court orders that awards them property and/or income. They are entitled to this property or income if it is not voluntarily surrendered by the other party in a court action.

Fee Schedule for Collection of Money

A service fee of five percent is charged in collection cases  from an execution or attachment. However, this is usually added to the judgment debtor’s payment, not deducted from the creditor’s award.

For example, if a judgment debtor owes $100, the five percent fee will be $5. The Sheriff will collect $105 from the debtor, so the creditor receives the full $100 to which he or she is entitled.

Property Execution


The purpose or function of the property execution is to satisfy a judgment by seizing property. In most cases the judgment will be for money owed. The Sheriff will either seize cash, personal property or real property, or conduct a public auction to convert the property to cash. Although we are essentially acting as agents for the judgment creditor in the action, our activities will be performed in a neutral, unbiased manner.  The Sheriff seizes only property the debtor has an interest in.

Property Execution Fees
$40.00
Each additional defendant: $15.00

Income Execution

An income execution is an enforcement issued by the judgment creditor’s attorney as an officer of the court, or the court clerk, directing the Sheriff to satisfy a money judgment from the  debtor’s income. The debtor’s earnings and State and Federal rules for payment, calculation and regulation determine the amount of each payment. Payments may be paid, voluntarily or involuntarily, to the Sheriff through payroll deductions. Income executions, which are not paid voluntarily, are served second stage on the debtor’s employer.  In a second stage service, the proper amount of money is seized from the debtor’s pay. The employer is required to forward this specific amount to the Sheriff for application to the account.

Income Execution Fees
Debtor: $30.00
Employer: * $30.00
* If the money is not recovered from the debtor, the debtor’s employer is served, and the debtor’s salary is garnisheed.

The purpose of an attachment is to seize and encumber property, which may be used to satisfy a judgment. Personal and real property can be attached and liquidated to satisfy a money judgment.

The above process is a “provisional remedy.” Anlthough the attachment is ordered by the court, it is also pre-final judgment. Any property seized is taken into the Sheriff’s custody and held until the court orders the final disposition.

Attachment Fees
$80.00
Each additional defendant: $55.00
Received and Levy: $40.00

Each Additional Levy Fee
Serve Defendant: $15.00
Mileage: $25.00

Order of Seizure
An order of seizure is used to seize specific personal property items when ownership and possession is disputed. A final judgment will usually direct the disposition of the property to a specified party,

The above process is a “provisional remedy.” Although the seizure is ordered by the court, it is also pre-final judgment. Any property seized is taken into the Sheriff’s custody and held until the court orders the final disposition.Property Seizure Fee
$116.50

Additional Fees - Against Secondary Defendant or Party
Executing against additional defendant or party: $55.00
Serving an additional defendant not in possession: $15.00
Summons filed w/Order of Seizure for each defendant: $15.00

If you have a question about collecting a judgment, contact me at the Law Office of Frederic R. Abramson at 212-233-0666

 What are the Sheriff Fees for Enforcing a Judgement in New York?

 Wage Garnishment: The Hidden Danger of Credit Card DefaultThe New York Times reports today that more struggling borrowers are facing wage garnishment than ever before. Because many credit card borrowers decide not to defend their case in court, creditors can win big judgments in court.

I recently wrote an article outlining what you should legally do if your wages have been garnished. You should go into the court where the judgment has been entered and make a motion to vacate the default.

The New York City courts have a strong policy of having cases decided on its merits.  Generally you have to prove that your were not served properly and show that you have a valid defense.

Let’s say you moved from Forest Hills to the West Village and never received the summons and complaint. In addition, there was an incorrect charge from Le Bernadine for $650.  It looks like someone stole your identity and was having a grand old time dining through the grand palaces of New York haute cuisine.   The judge will likely vacate the judgment and remove the wage garnishment.  Your case will then proceed and will be decided on its merits.

Even if you do owe the money, you should always defend yourself in court. Here’s why:

  • You force the credit card company to prove your debts.  When I first started practicing law, I litigated thousands of cases for a large bank. The bank subsequently merged with another bank and the attorney who sent me the cases lost the businesses.  The bank usually did not have the necessary paperwork, such as credit card statements, to prove their case.
  • Even if the credit card company has the paperwork to prove the debt, if you defend your case the court in New York requires someone with knowledge to testify as a witness. Since many debts are resold to a third party. These third parties may not have a presence in New York.  As a result, they may not have anyone who can testify regarding the validity of debt.  You may win your case even if you owe the debt.
  • Most credit card user agreements allow for huge interest charges, penalties and even attorney fees to be added.  In nearly all cases, in New York the judge will strong arm the credit card company to waive the fees.
  • Credit card companies understand that there is a difference between obtaining a judgment and collecting on it.  It also costs the attorney valuable time to litigate the case in court.  As soon as you receive the summons and complaint, a call should be made to the attorney for the credit card company to discuss settlement. It is not unusual to obtain a settlement for a fraction of what you owe.

If you have been sued for a credit card debt, feel free to contact me at the Law Office of Frederic R. Abramson at 212-233-0666.

What Litigation Costs and Expenses are Recoverable in NY? How about Attorney Fees?

March 19, 2010

Share
Nearly every lawsuit asks for recovery of attorney fees, costs and expenses for bringing the action.  When potential clients contact my office for the first time for a civil litigation matter, the most common question asked is whether attorney fees are recoverable.
Attorney fees are generally not recoverable.  There are exceptions to this rule, such as when authorized by [...]

Read the full article →

Breach of Contract Lawsuit in New York: Quick guide to steps

May 18, 2009

The web designer that you hired failed to deliver the new web 2.0 apps on your website as agreed to in your written contract. In the alternative, you have been sued by a customer because they were not happy with the materials that you supplied. Should you call a lawyer and either start or defend a lawsuit? Below, is quick guide that summarizes the basic steps, legal process and expenses to breach of contract lawsuit.

Read the full article →

You Just Got Sued. Now What?

April 2, 2009

Share
You are sitting in your office on the busiest day of the year, and just when you think nothing else could go wrong, a person walks in and utters the fateful words “You’ve been served”, while handing you a stack of papers.   You have just been sued.  What is the best course of action you [...]

Read the full article →

Tips for collecting money from companies that may no longer exist

March 18, 2009

Share
Just because you entered into a valid contract with a company does not mean that your contract is secure. According to Crain’s New York Business, more companies are going out of business than ever before. Many are doing so without any notice. Bankruptcy filings alone have tripled in the last year. You contact the [...]

Read the full article →