Businesses lose vast amounts of money every year from customers who write bad checks. It’s important to understand the steps you can take to recover funds owed. Skilled New Jersey debt collection attorneys can help.
Limitations on Bad Check Collection
When a customer writes a check for an amount over what they have in their account to cover it, that check will bounce. This leaves your business with an unpaid debt. You have options for pursuing payment, but there is a limit to how long you can wait. New Jersey limits collections on bad checks to three years after the check was presented for payment or ten years after the check was written, whichever is sooner.
Process for Collecting on a Bad Check
Like other collections actions, a creditor cannot pursue steps such as garnishment until and unless they first obtain a money judgment against the debtor. This is where using a non-attorney collections agency can present a problem. Most collections agencies are not equipped to file suit on behalf of their creditor clients. A skilled attorney can pursue a money judgment in court giving you the tools you need to collect the money you are owed.
Remedies Available in a Bad Check Collections Matter
If you successfully obtain a money judgment against your debtor, the law allows you to recover a variety of out-of-pocket costs and damages in addition to the face value of the check. You may be able to go after your attorney fees, the costs of providing notices to the debtor, court fees and treble damages. Treble damages may be three times the value of the check. Your treble damages can’t exceed 500 percent. Your attorney can discuss options with you about what assets your debtor may have to satisfy the debt owned once you have your money judgment in hand. The longer you wait, the fewer options you have.
Trust your collections matter to experienced, aggressive New Jersey debt collection attorneys. To make an appointment with the offices of Snellings Law, LLC, call 973.265.6100.