Tuesday, February 14, 2017

Enforcing Your Rights and Recognizing the Enforceability of Certain Clauses

Searching for the best way to enforce your right to be paid? Have a contract you need enforced? Wondering if certain parts of your contract might not hold up?

As a creditor, you can get into a difficult situation where a debtor is late on payments or even refusing to pay. As expert providers of debt collection in Michigan, we understand your frustration and believe you should know your rights when it comes to enforcing a contract.

If you have a contract with debtor, written or verbal, you have the right to be paid. When payments become an issue, you can pursue a legal judgment against your debtor and have the courts back up your claim to the owed money. With a judgment on your side, you have several options to pursue payment:

  1. Wage Attachments- Federal law allows a creditor to take up 25% of a debtor’s net earnings directly from a paycheck. Other rules may apply, and you can’t take as much that the debtor cannot support his or her family, but it is a very effective method.
  2. Property Liens- If the debtor has real property, like a house or land, a creditor can apply a lien which impacts a sale. When the debtor moves to sell the property, all parties involved are aware the creditor will need to be paid before the debtor receives any money from the sale. Once a lien is applied, a creditor can also repossess the property.
  3. Property Levy- A levy is similar to a lien, but applied to personal property, such as a car, motorcycle as well as personal assets, guns or a coin collection. When a levy is applied to a property the creditor has legally claimed a right to be paid with any money earned from a sale of the item, or the item can be repossessed and sold at a public auction.

These are only a few examples of ways to enforce a judgment or a creditor’s right to be paid. But, creditors should also know that simply because it’s written in a contract and agreed upon by both parties with a signature does not mean a clause will be enforced by the courts.

For example, any clause which negatively impacts a person’s basic rights will not be enforced by the court. Clauses that contradict state or federal laws are also unenforceable in most cases.

If you’re wondering how to proceed to enforce your rights as a creditor, contact the debt collection experts at MMRHM, P.C. We can legally represent you in any collection case and take some of the stress off your shoulders.  Give us a call today.

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