Kreis Enderle Hudgins & Borsos handles all aspects of the commercial collections from start to finish. The process begins by conducting pre-litigation investigations and analysis. We also help protect clients’ future claims by preparing legal instruments to secure troubled accounts. When litigation is necessary we provide a streamlined and efficient process to obtaining judgments and enforcing them both inside Michigan and across the United States.
Services performed:
Paralegals in our research department will combine credit/asset reporting information, title searches, and background checks along with online confirmation of property ownership to form an asset analysis snapshot which assist clients in evaluating the collection potential of the prospective debtor.
Our attorneys will propose and execute strategies to secure debts including personal guarantees, promissory notes, construction liens, mortgages, and UCC filings. Often this process includes negotiating with debtors to achieve security and payment without the necessity of filing a collection suit.
- Pre-judgment Litigation Strategies
Attorneys work together to tailor complaints which provide our clients an array of options when pursuing debtors. This may include filing claims seeking injunctive relief, relief from fraudulent transfers, accounting of assets, receiverships, lien foreclosure, as well as more traditional collection claims. Lawsuits may be filed in the State or Federal court system to provide clients the options of the various claims available in the respective courts. Cases are performed on a contingent or hourly basis depending upon the circumstances of each case.
- Post - Judgment Collection Strategies
Attorneys pursue enforcement of judgments through a variety of mechanisms including periodic and non-periodic garnishments, judgment liens, levies against real property, seizure of personal property and other mechanisms to provide comprehensive pursuit of both debtors and third-parties whom they utilize to shelter or transfer assets. We actively collect throughout the State of Michigan and have registered Michigan judgments throughout the United States to pursue debtors in other jurisdictions.
Attorneys in our collections and bankruptcy department work in a collaborative fashion to insure that our creditor clients’ rights are pursued in the federal bankruptcy courts to address questions of whether the debtor is entitled to discharge the debt, has failed to properly disclose assets or has fraudulently transferred assets to third parties.
An example of our success was recently achieved in a case in which we represented a Plaintiff in a suit against a Defendant construction company for defective workmanship. A Judgment in the amount of over $56,000 was obtained against defendant and plaintiff started post judgment collection. From the documentation subpoenaed (check register, bank statements, copies of checks) and the deposition of the Defendants principal after judgment, it became very clear that the named Defendant (entity) had fraudulently conveyed assets and receivables to various other corporate entities in an effort to hide them from the Plaintiff and shield them from Plaintiffs’ collection efforts. It also became clear that the principals had commingled corporate and personal funds. Plaintiff filed a subsequent action against the other corporate entities and the principals of the original Defendant under theories of fraudulent conveyance, conversion, successor liability and to "pierce the corporate veil" and obtain judgment against the principals personally. Shortly after the second suit was served upon the principals and related entities, the case was settled and the Defendants agreed to pay Plaintiff the balance owed on the judgment.