Commercial Landlords

Collection of Debts in Vermont

Our firm has over 30 years of extensive experience in helping creditors recover delinquent obligations, from debtors anywhere in Vermont.

Key to Success
The key to success in legal debt collection is securing assets or income of the debtor, out of which our client’s obligation can be paid. This can be done via lien, seizure, or other methods. In order to be able to do this, we first examine all of our client’s documentation on the situation in question, to determine who the potential debtors are. (Is it just a corporation or LLC which is obligated on the lease? Or, have one or more of the principals signed a personal guaranty, or exposed themselves to personal liability in some other way?)

Once we identify the potential debtors on the delinquent obligation, we conduct an investigation of each of them (using a proprietary online database and other methods) to determine their assets and sources of income. Based on this information, we advise our client as to whether there appears to be a reasonable chance of recovery. If so, we start legal proceedings to obtain a judgment against the debtor(s). If the debtor does not resolve the obligation after being served with suit papers and a copy of the judgment; we then take legal steps to secure or seize the debtor’s assets and income, in a way that would make them available to pay what is owed to our client.

Fees and Costs
Obviously, doing the work mentioned above, and taking legal action, involves attorney’s fees, investigation costs, Court filing fees, and Sheriff’s fees. However, the lease signed by the debtor usually provides for recovery of these fees and expenses if the debtor defaults on payment of its rent and other charges. Therefore, the judgment we obtain from the Court will include not only the principal amount of the obligation, but also interest, and the fees and costs involved in pursuing the debtor. Then, assuming the debtor has sufficient assets or income which we can secure, these costs plus principal and interest are ultimately reimbursed to our client.

Client’s Lease Form
Because of the importance of having the right provisions in the lease, the first thing we do in working with a new client is to review the client’s existing form lease, and suggest any changes which may be necessary to enable them to achieve full recovery against a tenant who defaults on his obligation.

Difference Between Collection Agency and Attorney
Some businesses use collection agencies to recover obligations. However, a collection agency is limited to contacting the debtor by mail and phone, to try to persuade him to pay voluntarily. An attorney is not limited to that approach, and can take legal action to obtain payment directly from assets or income of the debtor.