When you run a business, at some point you likely will have a client or customer who falls short on paying for the services or products you provided them. Maybe you have a contract for construction work on a large office project and the developer can’t pay you as your contract stipulates. Or you are a supplier for a manufacturing company and it hasn’t fully paid you for your last shipments.
If you realize you likely won’t collect payment anytime soon, if at all, you may decide to pursue litigation. Yet before you do, you may want to consider also seeking pre-judgment relief – and sooner rather than later.
What is pre-judgment relief?
With pre-judgment relief or pre-judgment remedies, your business can attach some of the debtor’s assets to your lawsuit. This is a way to ensure you could receive those assets if you are successful in litigation. Also, through pre-judgment relief in Massachusetts, your company can start charging interest right away on the debt, when your company seeks pre-judgment relief. That interest will accrue until the lawsuit is settled. The ability to collect more interest on a debt is one reason your business may decide to seek pre-judgment relief promptly.
Other advantages of seeking pre-judgment relief promptly include:
- Seeking pre-judgment relief can accelerate the pace of a lawsuit.
- Seeking pre-judgment relief can force an early settlement.
- A defendant may have to disclose all their assets as part of the pre-judgment relief process.
- Misconceptions or confusion around the collections dispute could be resolved at a pre-judgment hearing.
Getting help with pre-judgment relief
If you have a payment collections dispute that you may want to seek pre-judgment relief for, you should consult an attorney with experience in that area of law as soon as possible. With an attorney’s help, you can prepare for a pre-judgment relief hearing and your company will be more likely to secure the assets you desire. You also will have help negotiating a settlement with your debtor or litigating your case.
It’s never easy to crack down when you need to receive payment for your business’ products and services. Yet, promptly pursuing debt collection is an essential part of running a successful business.