Time for a little law. I recently represented a business that was trying to collect on an account. This business had done several thousand dollars worth of work for a customer but when it came time to pay, the customer disappeared. There were several things my client should have done differently in handling this account on the front end. But it was too late for those things.
My client was an unsecured creditor. In other words, my client did not have a security interest in any of the property owned by the debtor. We found out that the business held a few valuable pieces of equipment and some other assets.
So we filed an application for a Writ of Attachment. This is a debt collection weapon that can be used to reach non-exempt property of a debtor. Since this is considered an “extraordinary remedy” a court will only grant the writ if the Creditor is able to meet certain legal criteria.
One of the grounds is a showing that “the defendant is in hiding so that ordinary process of law cannot be served upon him.” Most of the other grounds require a showing that the debtor has committed some sort of fraud. Judges look at these remedies very carefully. But if you get your Order you can gain some powerful leverage in pursuit of your money. This definitely got the attention of the debtor and we had the majority of our money very soon thereafter.