Commercial Debt Collection in New York

Our firm represents businesses that are owed money by other businesses. Whether the debt is a single large invoice or a stack of delinquent accounts, we pursue commercial debtors and their guarantors with the full range of remedies New York law provides. Call 212-233-1233 to speak directly with attorney Albert Goodwin about your matter.

How Commercial Collection Works

Commercial collection is the process of recovering a business-to-business debt. Unlike consumer collection, it is not governed by the federal Fair Debt Collection Practices Act, which gives a creditor's attorney more room to apply pressure. A typical matter moves through several stages, and most cases resolve before reaching the last one.

Demand

We begin with a formal demand letter on our letterhead. A surprising number of debtors who ignored your own invoices and calls will pay once a lawyer is involved, because the letter signals that a lawsuit is the next step.

Suit

If the demand does not produce payment, we file suit in the appropriate court — Civil Court for smaller amounts and Supreme Court or the Commercial Division for larger ones. Most commercial debts rest on a written contract, a series of invoices, or an account stated, all of which are straightforward to prove.

Judgment and Enforcement

Once we obtain a judgment, the real work of collection begins. We use information subpoenas to locate the debtor's assets and then enforce the judgment through bank levies, restraining notices, and seizure of property.

Personal Guarantees

Many commercial debts are backed by a personal guarantee signed by an owner or officer. A guarantee lets us pursue an individual in addition to the company, which dramatically improves the odds of recovery when the business itself has no assets or has shut down. We always review the file for a guarantee at the outset.

Interest, Costs, and Attorney's Fees

New York allows a judgment creditor to recover statutory interest, currently nine percent per year on most commercial debts, plus the costs of suit. Where your contract or credit application contains an attorney's fee provision, we pursue those fees as well, which can make collection close to cost-neutral for you.

Move Quickly

The single biggest factor in whether a commercial debt gets collected is time. The longer an account ages, the more likely the debtor is to dissipate assets, take on other creditors, or go out of business. If you are sitting on an unpaid balance, the best time to act is now.

To discuss a commercial collection matter, call 212-233-1233 or email [email protected].