We regularly represent local and regional creditors, debtors, and Bankruptcy Trustees (Western District of Washington) in commercial collection matters. Frequently, parties feign insolvency in an effort to convince the creditor to drop their claims. In light of such statements, we have the experience to evaluate whether the “poverty plea” is legitimate, and therefore counsel the creditor into adopting a settlement posture, or whether it is more advantageous for his creditor clients to press their case even harder to judgment and collection.
We are no stranger to defendants who file bankruptcy solely in an attempt to prevent us from attaching their bank accounts and selling their assets. This is where the litigation begins, and our experience matters. Creditors have the option of filing “adversary proceedings” in Bankruptcy Court whereby the creditor requests the Bankruptcy Judge to deny the discharge. We have successfully prosecuted adversary proceedings and denied a debtor’s request for discharge.
Client paid Builder to remodel deck on Client home, but Builder lied to Client and claimed entire home was filled with dry rot. Client paid high six-figures to Builder only to discover Builder was not working on home. Obtained judgment and executed on Builder’s home, which forced Builder into Chapter 11 (which we successfully opposed), then into Chapter 7 proceedings. We filed an action to have client’s debt avoided under Section 523, and prevailed on summary judgment. Debtor is currently serving nine years in prison for his actions.
Client Creditor attempted to collect judgment from Debtor Corporation that had no assets and an expired corporate license. President of Debtor Corporation avoided service for months.We successfully obtained bench warrant for President’s appearance by arguing that under RCW 6.32, Debtor Corporation had absconded from the State by failing to pay license fees or conduct business. President appeared and gave key testimony.
Represented major construction contractor in breach of overseas delivery contract. More than ten claimants sued the Defendant Supplier. We obtained prejudgment writs of attachment/garnishment against Defendant’s property and accounts, while attaching Defendant’s litigation law firm and bankruptcy law firm unearned fee accounts. Both law firms withdrew, which enabled my client to obtain an immediate judgment. Our client was the only party who collected against Defendant.
We were hired to collect on a judgment. Initiated supplemental proceedings, issued writ of execution, and held Sheriff’s sale. Client obtained full recovery plus attorney fees.
Client Contractor built a commercial structure, but Defendant Owner refused to pay. We filed a lien foreclosure action and obtained prejudgment remedies, which led to immediate settlement.
We employed prejudgment remedies to dismiss Defendant’s $200,000 bond and retainage claim, and then obtained a $150,000 judgment in favor of Client—all in less than one month.