180 Degrees Around Weehawken, New Jersey

It's October 31, 2009. Time to take a break from the business of collecting.

New Jersey seems to have an infinite amount of beautiful vistas. Try this one, for example: Weehawken, NJ (the town that hosted the Burr-Hamilton duel)

You're moving your head from left to right 180 degrees. Click on a picture and you're standing in Weehawken, NJ and looking at Manhattan Island, NY.

Pennsylvania Community Association Statute of Limitations

Pennsylvania Community Associations: Careful of Short Statute of Limitations!

Pennsylvania Statute of Limitations - Assessed Fees of Planned Communities Act - Statute of Limitations is a rule mandated by the Commonwealth of Pennsylvania which defines limits to the amount of time in which a suit can be filed.68 Pa C.S.A. ~5315(e) explains that the statute of limitations for actions with respect to assessed fees collected by Planned Communities is limited to three years from the date the assessment becomes payable.

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This rule differs from some other types of contract actions to collect debts where the statute of limitations is four years.

Community Association Collections - Experienced Collections From BCA Financial Services Bloomfield, New Jersey (NJ) 07003

BCA Financial Services - Collection Agency for :

*** Community Association Collections ***

Unpaid Dues…A Free Ride?

Unpaid dues and assessments are a constant burden on property owners associations and a major headache for managers and board members.

The property owner who expects a free ride by ignoring his financial obligation to the association is, for all practical purposes, passing his debt on to his neighbors. This is the net effect, for the unpaid bill must be absorbed and paid by the (increased) dues on the paying members.

If allowed to go unchecked, this problem will result in a severe financial crunch as well as widespread irritation among the paying members.

Paying members demand and deserve nothing less than equitable sharing of the burden.

In my personal experience as a professional collection agent, I was asked to attend an open board meeting a few years ago and the opening remark from a member in attendance was “What are you doing about the members who aren’t paying?”

The answer, of course, should be “...prompt and continuing attention to the slow payers and professional help on the seriously delinquent who are not coming forward with an effort to pay.”

Such professional help may be 1) a professional collection agency, experienced in this area of collection or 2) an attorney. Bear in mind that an attorney’s actions (especially, if not specializing in this field), may be confined to writing a letter and suing for judgment. Also, consider that an attorney’s overhead, being greater than that of a collection agency, necessitates fees and advanced costs greater than that of a collection agency.

While admitting to prejudice in this regard, I believe a collection agent on the other hand will familiarize himself and his staff with the constitution and by-laws and can rationally and patiently refute most of the standard excuses offered by delinquent members. An agency can also, if networked with the American Collectors Association, pursue and even refer for suit, any debtor anywhere in the country. And, most important, an agency will work on a contingent fee basis (no collection-no fee).

Bear in mind, however, that time is every debtor’s ally. The longer a debtor is allowed to ignore a debt, the more factors against successful collection pile up; such as marital status, health or income problems, changes of address (usually leaving no forwarding address) and, of course, the mental attitude that comes from having gotten way with it for so long.

The delinquent member who is brought current promptly, will probably remain as a paying member versus the long delinquent member whose obligation has piled up beyond his willingness or ability to pay and who thus becomes a drop out who completely defaults and has to be sued.

John Debold
Managing Partner BCA Financial Services

Collection Lawsuit Update 2009 - NY - NJ - PA

2009 UPDATE--When the lawsuit is necessary to collect your money
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Since these are difficult economic times, we’ve heard recently from clients who want to employ various degrees of compassion for consumer debtors.

While your debtor may not have the ready cash, or any cash to pay your bill immediately, a plan should nonetheless be forthcoming. If it is not and you hear nothing from your debtor, you must consider a lawsuit to secure a Judgment (in District Court-NOT “Small Claims”) to protect your interest. More on why Small Claims court is not recommended later.

If they own a home, your court Judgment will have more weight than simply a credit bureau “derogatory.” Your docketed judgment will be a Judicial lien against that particular parcel (or any they may own in the state the judgment was taken) should they sell or become deceased.

After a Judgment is awarded, the Court Officer will “Levy” Herewith an explanation (although these can vary a bit from state to state.)

“Active Levy” – this is a court ordered levy that will always take assets away from the debtor. Usually these are assets that are cash (in a bank) or can easily be conveyed to cash, i.e. valuable artwork, collector car. Usually a judge will not order the sale of a debtor’s home to pay a debt, unless there are extenuating “fraud-type” or possible criminal circumstances. It can, in fact, happen for a debt, but it can be time consuming, unreliable and costly. Welfare benefits, Social Security benefits, SSI, Veterans' benefits or unemployment benefits cannot be levied upon. In New Jersey the only item that can’t be levied, other than the above benefits is clothing.

“Constructive Levy” – This is a “softer” levy. Assets are encumbered (liened) but are not sold. Your Judgment is a lien against, for instance an elderly debtor’s home and they will not have to pay during their lifetime (or until the home is sold, transferred, etc.). Judgments sit for 20 years in NY and NJ and can be renewed. Pennsylvania at 5 years, is much shorter, but can be renewed.
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If you don’t know of your debtor’s assets: While once again varying from state to state, the attorney can file an “Information Subpoena” or [obtain an] “Order for Supplemental Subpoena” (Discovery) to ask as many questions of the debtor regarding his assets until he is satisfied. If these subpoenas are ignored, our attorneys (if the claim warrants) can issue a Warrant of Arrest.

“Small Claims Court”: It is not recommended to use Small Claims Court for your collection suits as Small Claims Court may present problems for businesses. Other than the fact that SCC has the historical feeling of a consumer’s court, the judge must invoke Rules of Evidence and Rules of Procedure, which you would be unfamiliar with as a lay person.

Garnishment of a debtor’s wages (not in Pennsylvania): If place of business is known, or can be found, the Court Officer will be directed to the debtor’s employer to have funds deducted from his paycheck (provided he earns more than $127.50 per week in NJ).

See Also Older Blog: "To Collect Money Suit Should Not Be Your First Choice"

Creditors: Obtain Information Before Transaction!

BCA Financial Services Collection Agency Clients:

Start off 2009 on the right foot:

This past year at BCA Financial Services Collection Agency, we have seen literally hundreds of claims come in to our office with very little or no “back-up” information.Remember the last time you obtained a loan at a bank? You sat there and filled out numerous boxes of information so detailed that they can tell you the maiden name of your mother.

When you extend credit at your business, it’s not unlike a bank loan. While you may not need as much information as the above bank, you’ll need all the basics—plus: TRADE STYLE for business credit transactions and PLACE OF EMPLOYMENT for consumer transactions.

Protect your business – obtain information when giving credit.

Trade Publication Collection Agency

Trade Magazine collections are not unfamiliar to BCA Financial Services. They take legwork, diligence and “reach.” Often our clients are in one state, say New York, and their customers (advertisers) are in another, sometimes very distant, state.

A delinquent debtor in say, Utah will understand the cumbersome nature trying to collect your money with so many miles between you.

In the worst-case scenario, BCA Financial Services can sue in the debtor’s state, using a bonded attorney from one of the five attorney referral services to which we subscribe. We say worst case because a debtor company may put up a challenge, however specious, and either delay the case or require an appearance by our client.

Hopefully the case will be successfully collected by our office eliminating the need for this.

Forwarding for suit has to be evaluated by our clients and BCA Financial on a case-by-case basis. The amount, jurisdiction’s court costs and debtor’s viability will be a factor in our mutual decision.

Visit BCA's Web Site often for valuable collection information.

BCA Financial Services Has Been Accepted Into the American Collectors Association!

BCA Financial Services , a New Jersey Bonded Collection Agency, has again been accepted as a member of the American Collectors Association for 2008-2009.

This will be their 31st year of membership in that most august and prestigious of businesss organizations.

Here is their new certificate.