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MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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I have a customer that has been avoiding me for about a month,

Customer Question

I have a customer that has been avoiding me for about a month, they owe me $17,000. I just found out that they are going under. Is there anyway to get payment if the banks forclose on their property?
Submitted: 4 years ago.
Category: Business Law
Expert:  MShore Law replied 4 years ago.
Thank you for the post, I am happy to assist you by answering your questions. Is this a commercial customer or consumer?
Customer: replied 4 years ago.

they are commercial

Customer: replied 4 years ago.
Expert:  MShore Law replied 4 years ago.
Yes, but you should act fast to place a lien on the property before the foreclosure. Did you take a security interest in the property or any property as part of the rendering of services? I ask because if so you need to perfect that lien as soon as possible. Also, is the obligation to pay you irrefutable (and in writing)?
Customer: replied 4 years ago.
yes.... several seperate contracts
Expert:  MShore Law replied 4 years ago.
Great, did you already record those liens?
Customer: replied 4 years ago.
haven't done anything, just found out they are going out, aging is only 60 days old
Expert:  MShore Law replied 4 years ago.
ok, I just want to be clear, have you obtained a security interest in the property? If so, did you record the lien?
Customer: replied 4 years ago.

I have no security interest, just found out they were going under, haven't done anything yet. Had no idea anything bad was happening?

Expert:  MShore Law replied 4 years ago.
thank you, you need to file a lien on the property provided that the agreement for the service/product you were to provide established your security interest in the property. If not, and you therefore are effectively an unsecured creditor, you need to file suit against the client immediately with the objective of quickly obtaining a default judgment, then obtaining a writ to attach the client's property to the judgment for satisfaction. As you have likely gathered, this process would be much faster with the assistance of counsel.Please let me know if you have any follow up questions.

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