Debt collection and COVID-19. Some people are in a really bad situation these days, when financial aid from the government has not reached those in need yet, while the bills are always there to pay. Yet, among those who do not pay their debts, there are those who can pay, but prefer to use the troubled time to avoid meeting their obligations.
Debt collection and COVID-19: what are the impacts?
While we are all compassionate to those suffering, a cunning kind of “shrewd” attracts less sympathy.
If you suspect a foul play, it would be a good idea to see your lawyer.
Be it instalment pay agreements, commercial lease or a leasing arrangement, a hypothec (mortgage) loan, a long-lasting or a recent debt, if you have a valid claim, you should think twice before deciding to do nothing. Even if you want to give an understandable relief to your debtor for this while, you should do it in a correct way, in order to protect your right for the future. To put it in a simple way, most of the time you will need an additional agreement. And the terms of this kind of agreement are not as simple as you might think, as they change the whole contract you have. Unfortunate wording might ruin a lot.
If, on the other hand, you are not in the mood to forgive and are resolute to pursue your claim but postpone it because of the quarantine and the Courts closed, do remember that it’s still a good time to make first necessary steps — to get your foot in the door. Nobody knows how long this quarantine stays imposed and when the consequences are gone. It’s always easier (and cheaper) to act in advance.
You might be on the other side, of course. Say, you are in an honestly precarious financial situation and trying to negotiate a deal. No, you are not refusing to pay, you are just trying to get to a moment when you will be able to pay actually. Do you have rights? Yes, you do. Force majeur, factual impossibility to act, other party’s obligation to decrease their loss, etc. — there are many legal means to help you if you are acting in good faith. So if you receive some threatening notices from your creditor, don’t rush to panic. Calling your lawyer in advance saves a lot of trouble in the future.
We are debt collection lawyers
Allen Madelin is a small law firm with considerable expertise in helping start-ups and small enterprises, consumers and divorcing spouses, landlords and tenants. We are debt collection lawyer. Contact us at 514 904 4017 or by email: [email protected] to make an appointment. We offer your first consultation at $125 in the actual situation.
