Debt Collection Tips: The necessity of obtaining the debtor’s identifying information

Posted on July 13, 2014 by Richard Klass

Many creditors fail to obtain information from a potential debtor which may be necessary in the collection process.

In order to maximize the successful collection of a debt, a creditor must make sure that it obtains the information which will help (a) locate the debtor and (b) locate his/her assets or sources of income. A creditor should, at a minimum, obtain the following information:

Social Security Number
Date of Birth
Full name, exactly, with middle name.
Exact address, with zip code.
Employer’s name, address, telephone number, supervisor’s name and direct extension.
Verification of employment signed by employer’s human resources department.
Bank account information, with branch and account number for each account.
Spouse’s name, if applicable.
Telephone numbers for work and home.
Signed authorization from the debtor to obtain credit reports, if applicable.
If debtor is to guarantee another’s account, all information concerning the primary obligor.
Most recent federal and state tax returns, together with W-2, K-1 or 1099 forms.

R. A. Klass
Your Court Street Lawyer

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Probate/Administration: a guide to probate or administration proceedings in New York State.

Posted on July 3, 2014 by Richard Klass

Upon a person’s death, a proceeding may be brought in the Surrogate’s Court of the county in which the person formerly resided. The proceeding will seek to collect and administer assets of the deceased person, and distribute them to his/her heirs.

There are two basic types of proceedings: Probate and Administration.

Probate:

Where the deceased executed a “Last Will and Testament,” a proceeding will be filed to “probate” [or “prove”] the Will. The deceased, known as the “testator” will have designated an “executor” [someone selected to carry out the deceased’s wishes], who may or may not receive a commission for such services. The deceased will also have designated beneficiaries to receive portions of his/her estate. The deceased may indicate specific bequests of property (such as “to my brother, I leave my guitar”) or general bequests (such as “to my three siblings, I leave them each one-third of my net estate”).

Administration:

Where the deceased did not execute a Will, the person is referred to having died “intestate.” Contrary to popular belief, the assets of that person’s estate do not automatically go to the State. Rather, there is a section of law which specifies the manner in which an intestate’s assets are distributed. Depending on who the survivors of the intestate are (such as a spouse, child, parent, or cousin), the law will tell the “administrator” to whom the net assets of the estate must be paid. The “administrator” serves a similar duty to the deceased’s estate as the “executor” mentioned above, and may be appointed by the Surrogate of the county upon proper application.

Collection of assets

After appointment, the executor/administrator will have the duty to locate and collect the various assets of the deceased. An account may be opened in which the assets will be deposited; non-liquid assets, such as cars, houses, stocks, or furniture may be sold at auction or otherwise converted to money. Actions may be brought on behalf of the deceased to collect moneys due to the estate or for wrongful death/personal injury actions.

Tax returns

After all of the assets have been collected, the executor/administrator will determine whether federal and/or state estate tax returns must be filed. Various banks or institutions may require “tax waivers” or “releases of tax lien” from the State in order to release funds to the executor/administrator.

Accounting

The final duty of the fiduciary is to file with the court an “accounting” of what that person did during his term as executor/administrator.

Professional fees

The fiduciary will retain and pay professionals in connection with the estate proceeding, including attorneys, accountants, brokers, auctioneers, and appraisers.

copyr. 2014 Richard A. Klass, Esq.
The firm’s website: www.CourtStreetLaw.com
Richard A. Klass, Esq., maintains a law firm engaged in civil litigation in Brooklyn Heights, New York.
He may be reached at (718) COURT-ST or e-ml to RichKlass@courtstreetlaw.comcreate new email with any questions.
Prior results do not guarantee a similar outcome.

R. A. Klass
Your Court Street Lawyer

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Debt Collection Tips: identify the proper party.

Posted on June 23, 2014 by Richard Klass

One of the most important steps in the debt collection process is determining the proper party to sue.

In the case of an individual, the creditor must take great strides to ensure that the individual debtor’s name is properly spelled, along with the debtor’s street address and social security number.

In the case of a corporation, partnership or limited liability company, the exact legal name should be obtained. The legal status of a debtor may be confirmed through the Secretary of State’s office. The creditor may also want to run a business credit report, such as a Dun and Bradstreet or Equifax report.

Where a creditor has obtained a personal guarantee of a corporate debt from an individual, it is equally critical that all the same information is obtained for that person.

The identity of a potential debtor should be verified immediately upon consideration of extending credit. Many businesses’ credit departments are lax in having account applications signed and reviewed. This first encounter with a debtor is the right time to verify the debtor’s status.

Gathering as much information as possible about a debtor will assist in collecting debt from the debtor. At every stage, from pre-suit negotiation to institution of litigation to enforcement of judgment, the exact legal name of the debtor will prove valuable to collection. Liens, credit bureau reports, and attachments of property will prove successful if accurate information is provided.

R. A. Klass
Your Court Street Lawyer

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Buying Your House Does Not Have to Be a Hassle

Posted on June 13, 2014 by Richard Klass

A Primer on Considerations for the Buyer.

A buyer of real estate must be aware of a number of issues before entering into a Contract of Sale. These issues can include:

Pre-contract tests and inspections

The buyer may elect to conduct a number of evaluations regarding the quality of the house to be purchased, including: a) termites; b) lead paint; c) engineer’s report; d) radon; e) environmental study; f) appraisal; and g) neighborhood study (e.g., New Jersey now requires disclosure of any sexual offenders in the area). Many of these tests will provide key information regarding the house which may be needed for several reasons, including whether the house should be purchased, what items the seller should repair or cure prior to closing, or what concessions should be made in the purchase price.

Mortgage requirements

The buyer may want to contact a mortgage lender or mortgage broker to see if s/he is qualified for a mortgage. The lender may require a substantial down payment or income qualifications. The lender may offer mortgage loans at different rates, based upon the type of property; income or no-income verification; or payment or “points” up-front.

Title considerations

The buyer will conduct an inspection of the title records concerning the property to ensure that the property is free of all liens and encumbrances, and that the description of the property in the Contract of Sale exactly matches the property as listed on the county’s records. They buyer will retain a title company to conduct the search, and will purchase title insurance to cover any possible claims. Various issues may arise concerning title, including: a) Mechanic’s liens; b) bankruptcy; c) Environmental Control Board violations; d) Fire Department violations; e) Certificate of Occupancy issues; f) issues with the “chain of title” from the seller or prior owners; g) tax arrearages or tax liens; and h) Judgments against prior owners. Many of the various title issues can be resolved prior to, or at closing. In some situations, corrective action will be needed to pass “clear” title.

copyr. 2014 Richard A. Klass, Esq.
The firm’s website: www.CourtStreetLaw.com
Richard A. Klass, Esq., maintains a law firm engaged in civil litigation at 16 Court Street, 28th Floor, Brooklyn Heights, New York.
He may be reached at (718) COURT-ST or e-ml to RichKlass@courtstreetlaw.comcreate new email with any questions.
Prior results do not guarantee a similar outcome.

R. A. Klass
Your Court Street Lawyer

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Debt Collection Tips: Suing the proper corporate entity

Posted on June 3, 2014 by Richard Klass

Many times, a debtor will be identified as the “XYZ Company.” Without further information, the creditor cannot know whether the entity which owes the debt is a corporation, sole proprietorship, partnership, or limited liability company.

It is necessary when considering suing a debtor that the proper legal entity be identified. In the case of a corporation, the name must include either “Inc.,” “Corp.,” or “Ltd.” A limited liability company must include “LLC.” A partnership or sole proprietorship can be identified from a business certificate filed in the County Clerk’s Office. Other forms of legal entities include limited partnerships, professional corporations, and professional limited liability companies.

The necessity of suing the proper party is to ensure that when it comes time to enforce the prospective Judgment, the debtor will be properly identified and the debtor’s assets will be leviable. Further, it will help eliminate defenses concerning the jurisdiction of the court over the proper party.

To assist in collection against the proper entity, the creditor should obtain the exact name of the debtor and its type of organization at the onset of the transaction. A search through the records of the Secretary of State’s Office can verify the information provided by the debtor. The creditor may also request that the debtor provide a copy of the Certificate of Incorporation or Business Certificate of the entity. In fact, this is a common requirement of a bank when a debtor opens a bank account.

R. A. Klass
Your Court Street Lawyer

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