of Solid Results
We have been representing creditors for over 25 years. The expertise of our attorneys is unmatched. Following are just a
few examples of how we have assisted our many clients over the years.
One of our commercial clients retained us to collect their overdue accounts receivable from debtors located across the United States. We learned that in one of the cases the debtor was planning to move all of his assets and inventory to Mexico. We quickly filed a lawsuit and obtained an emergency court order allowing us to take the amount owed from the debtor's bank account. (This procedure is available in some states.) When the process server arrived at the business the next day, the debtor was loading up moving vans. Our client received full recovery in that matter.
Promissory Note Litigation
Our client purchased a portfolio of
unpaid receivables from a failed entity. They were provided with original
promissory notes and limited documentation, but not much more. Records were in
disarray or missing. With no witnesses from the failed entity, debtors refused
to pay our client. We filed suit in the majority of the cases. Under the
California Evidence Code, possession of an original note creates rebuttable
presumptions that our client was the holder and owner of the note, and that the
note was unpaid. As a result of our litigation strategies, our client recovered
a good percentage of their portfolio.
Credit Card and Retail Collection
We represent many credit grantors in all aspects of collection and litigation. In one instance, our client wanted to quickly liquidate a consumer portfolio. Working in close conjunction with their collection
and legal departments, we were able to improve their cash flow, recover substantial amounts of unpaid debt, and keep them updated on a regular basis through consolidated computerized reports.
In another instance, our client had purchased a substantial amount of credit card paper. We were able to streamline collection and litigation procedures for them, resulting in faster recoveries.
We have been collecting secured debt for numerous banks and other financial institutions. In one instance, a corporate promissory note was secured by a blanket UCC lien, and several personal guarantees. We obtained a writ of possession against all of the corporate assets and liens against the guarantors' real property. We won the case on a summary judgment, and proceeded to sell assets to recover all of our client's money.
One of our clients was sued by a corporation which had purchased goods from them claiming that their entire business had been ruined by defective goods. We established that the goods were not defective, that the debtor had not complied with the Uniform Commercial Code, and that the terms and conditions in our clients' confirmation of the purchase order barred the debtor's claims.
In one instance, we coordinated
collection of thousands of judgment cases which were previously at a law firm.
We quickly took over judgment enforcement, and collected millions of dollars for
our client which otherwise would have been lost to them. We frequently take over
collections after judgement.
Sister State Judgments
We have successfully collected upon judgments from other states where the
judgment debtors had moved to California (sister state judgments). The procedure
is straightforward: have the foreign judgment entered in a California Court,
personally serve the judgment debtor, and then proceed with judgment collection.
We have utilized this procedure thousands of times over the years.
In one of the preference actions we have defended, the trustee was seeking return of approximately $200,000 from our client. The trustee contended that the creditor had been paid that amount within 90 days prior to bankruptcy, and sought payment of the amount paid plus two years of interest. Although the trustee was correct, and our client had few possible defenses, we were able to settle the case for only $125,000. In other cases, we have been able to establish new value or other defenses apply; in those matters, our client paid nothing to the trustee.
We also represent trustees. We also enjoy marshalling assets for trustees. It benefits not only the estate, but all of the other creditors. Therefore, our expertise in collection easily translates into recoveries in Bankruptcy Court matters by preference prosecution and collection of accounts receivable.
Student Loan Collection
We collect and litigate student loans for lenders, guaranty agencies and others. We have substantial experience with guaranteed and private loans. We have explained to countless judges how consolidated loans are capitalized, and have the expertise and experience to successfully eliminate the various defenses and assertions raised by students and their counsel. We know how to collect all types of student loans, even those owed by attorneys.
In one case, the student attempted to assert that the loans were actually grants and disputed virtually every single issue in the case. They even refused to acknowledge that they had signed the loan documents and promissory notes, contending that their signature was different. We were successful in cutting through all of the defenses and proved up the case at trial. Our client was then fully paid.
Student Loan Litigation
In another matter, a student sued our client, contending that certain provisions of Federal statutes were unconstitutional. We successfully fought back each of the claims raised against our client. We also have defended numerous other types of complaints filed against our student loan clients.
Student Loan Adversaries
We have years of solid experience defending bankruptcy adversary actions filed by students based upon claims of undue hardship (11 U.S.C. 523(a)(8)), or unconscionability (the standard for dischage of HEAL Loans) in Bankruptcy Court.
In one case, we were retained as outside counsel by the State of California and another student loan client to defend an adversary action filed by the Debtor to determine nondischargeability of a student loan. We prevailed in Bankruptcy Court on behalf of both clients, and won on appeal to the District Court on a legal issue which was then unsettled in the Ninth Circuit.