The Law Office of Alan Pritchard, PLLC
Attorney at Law · 901-249-8748
Practice Areas Business and Commercial Disputes Breach of Contract Cases Commercial Debt Collection Construction Law/Mechanics' & Materialmens' Liens Evictions Immigration Closely Held or Family Owned Corporations and Shareholders Rights
Memphis, TN Attorney | Commercial Debt | Alan Pritchard

Commercial Debt Collection

To discuss your case with Mr. Pritchard, contact him directly at 901-249-8748 or click here to use the online contact form.

In most cases involving the collection of a commercial debt, the “easy” part is obtaining a judgment against the debtor.  Many times, knowing there is no defense to the creditor’s claim, the debtor will not  file a responsive pleading to the creditor’s lawsuit and will allow a judgment to be taken by consent or default.  The real work begins with the collection of the judgment.  Many commercial debtors attempt to hide their assets or fraudulently transfer them to third parties.  It is important to have an attorney who knows the “tricks” of such a debtor and has the experience to locate and execute against those assets.  Mr. Pritchard has that knowledge and experience.  

Mr. Pritchard generally handles commercial debt collection cases on a contingency basis which means he does not get paid unless he is successful in collecting on the judgment whether through a lump sum payment or an agreeable payment arrangement.

Mr. Pritchard is an attorney experienced in the area of commercial debt collection who knows the procedural rules and substantive law that assist a creditor in locating and executing on the assets of a debtor who is unwilling to voluntarily pay the judgment entered against him.The law initially gives the creditor ten years in which to collect the unpaid judgment.  The creditor can renew the judgment for additional ten year periods while the collection efforts continue. 

Procedural rules provide the means for the creditor’s attorney to compel the debtor to produce bank records, tax returns, and other financial documents and to give sworn testimony on his financial transactions.  Additionally, the law allows the creditor to reach the property of the debtor in the possession of third parties, such as an employer, a bank, or other financial institution.  The same procedural rules are used to determine whether an individual or entity hiding behind a corporate veil is responsible for the commercial debt or whether the debtor has fraudulently transferred assets to relatives or other third parties to avoid paying the judgment. 

In determining whether to "pierce the corporate veil" and hold an individual or an entity liable for the commercial debt, the court will consider whether the corporate entity has been used to work a fraud or injustice in contravention of public policy, whether (1) there was a failure to collect paid in capital; (2) the corporation was grossly undercapitalized; (3) stock certificates were issued; (4) the stock is owned by one individual; (5) the same office or business location is used; (6) they employ the same employees or attorneys; (7) the corporation is used as an instrumentality or business conduit for an individual or another corporation; (8) corporate assets are diverted by or to a stockholder or other entity to the detriment of creditors, or the manipulation of assets and liabilities in another; 9) the corporation is used as a subterfuge in illegal transactions; (10) the corporation was formed and used to transfer to it the existing liability of another person or entity; and (11) they fail to maintain arms’ length relationships among related entities.  Mr. Pritchard will review your case to determine which factors are present and which individuals or other entities attempting to hide behind the corporate veil are responsible for the commercial debt.

Debtors also seek to hide their assets by fraudulently transferring them to third parties.  Courts can go behind and undo such transactions so that the fraudulently transferred assets can be used to satisfy the commercial debt. Fraudulent transactions are those that are made with the intent to hinder, delay, or defraud the creditor.  To determine whether a transaction is fraudulent, a court will look at several factors that include, but are not limited to, whether the transfer was to an insider; whether the debtor retained possession or control of the asset after the alleged transfer; whether the transfer was concealed; whether the debtor was sued or threatened with a lawsuit before the transfer; whether the debtor transferred substantially all of his assets; whether the debtor received a fair price for the transferred asset; whether, shortly after the transfer,the debtor became insolvent, and how close in time after the debtor incurred the debt at issue did the transfer occur. 

If your judgment is obtained in a state other than Tennessee and the debtor has assets in Tennessee, Mr. Pritchard can file the pleadings necessary to domesticate your judgment in Tennessee and reach those assets to help satisfy your judgment. 

If you need a commercial debt collection attorney in Memphis or Tennessee, you can contact Mr. Pritchard at 901-249-8748 to discuss your case.  Mr. Pritchard can also help you collect commercial debts in Mississippi, Arkansas, and Kentucky.