Debt Collecting Q & A – Issue #12

Dear Jim –

An information technology firm owes me almost $40 thousand for consultant work I did for them. Now they have changed the name of their firm and had a lawyer send me a letter that claims their bank has seized their assets. I know this is not true. They are still at the same location and employ the same people. They just answer the phone with a different name when I call. I don't know what to do. I always thought they were a reputable firm.

Mark S., WI

Dear Mark:

This is an old tactic. The letter you got from their lawyer is inferring that they've filed for bankruptcy when it hasn't. The bank hasn't seized their assets. The attorney is lying. Check with their bank and if the situation is as we suspect file a complaint with your state bar association for the lawyer's unethical practices. Talk to the attorney about how unethical it is to attempt to hide the assets of his client so they can stick people. You might also want to imply that the next time the company pulls a name change maybe it will be the lawyer's turn not to get paid! Keep making calls to the company CEO and controller and confront them about their ethics. Ask them their opinion of the Enron scandal. Talk about filing a lawsuit. Look for an attorney who will work for a percentage of the amount you collect. These people are taking you for a bad and painful ride and if I were you I wouldn't waste a second in going after them at full steam.