Professional Debtors: '' To sue or not to sue ''

We dedicated our current publication for ''entertaining'' professional debtors, and ways to avoid them. You can see from the title the amount of irony it represents.

Maybe some of you haven't met such debtors, or even doesn't know what do we mean by such debtors, or at least had bad experience(s) facing such debtors. Most important is that you are going to face one, at least once, and you won't know but afterwards.

It seems that in every field, we have a touch of professionalism.

We call them professional because:

1- You will not be able to collect your debt because they already know the ways how to prevent you from doing it.;

And,

2- You are dealing with a professional debtor because either you're a bad rookie or just unlucky. Always keep that in mind.

What do we mean by professional debtors?

They are the people having no assets to cover the debt, haven't presented any guaranty and above all, their domicile is unknown. In case they answered the phone, it will be just for maneuvering or stealing some time. They promise without action, and they really know how to promise. In case you decided for a lawsuit, the end will be winning uncollectible judgments. They wasted your time and money, and ready to waste it twice. You should always bear in mind that a professional debtor usually uncovers his identity when maturity dates start rolling. He plays gentleman at the beginning.

We get many calls for such cases, and we can say that they are one of the toughest. They are tough when weighing your decision in answering the following general question:

'' To sue or not to sue?''

In order to take a good decision, and before you file suit, there are certain points that should be hinted:

Debtor's assets

This is the main point that should be taken for your decision. In case the debtor has no assets times 3 the amount of the debt, your case will vary between risky and dead situation.

To know your position, you should search about the debtor's assets. Real estate status would be a premium search. Business Income would be a second choice. Legal status would be a main choice.

As known to all, a professional debtor always tends to decrease his belongings by shell agreements, that's why mortgaging, would be the best option to be decided.

A simple strategy is required:

To control, you need to be secured.

To be secured, you have to grab.

To grab, you have to search.

Questions are the main keys of your search, here are some:

Debtor's domicile:

'' Professional Debtors are hard to catch ''

Debtor's domicile is important for direct and indirect communication.

For direct communication; in case the debtor started to change domiciles with no forwarding address, communication strategies (which are the best strategies) are off record. You could no more talk to him.

For indirect communication; in case you decided to file a suit, a clear domicile would be of positive help for notification purposes.

We can classify types of domiciles:

You could face total ignorance of the domicile, uncertain domiciles, unreal domiciles or far domiciles.

     -    Total ignorance of the domicile: No idea where he is. Alive?
     -    Uncertain domicile: You are not sure if he's here or there.
     -    Unreal domicile: Domicile Fraud. Strangers answer your calls.
     -    Far domicile: From Lebanon to Brazil.

Debtor's kind:

You could meet different types of debtors,

     -    Good debtor: He pays on time.
     -    Delaying debtor: He delays payments, but pays.
     -    Bad debtors: He delays payments, and pay few.
     -    Professional debtors: You started to have an idea.

We would like to note 2 cases, which could be common for all readers;

   a-  It is when your debtor is your customer.

It is a very critical case, and hard to deal with. If you don't know how to balance conflict of interests, we advise not to rush. The conflict of interest is represented in that image:

'' You hate your debtor and you love your customer ''

If it was the case, sure it is recommended to deal in between these bounds: Do not make him mad but do not endanger yourself (no mad no dangers). Project interests can play a main role in killing the debt for future business partnerships. Honest communication can deal with resting aside the word '' suspicion'' a little bit, knowing that you dislike talking about your debt with your customer. When maturity date is attained, you will have hard time for just reminding him of your money.

You should play on the interests of having him a customer and on collecting your cash back.

In such cases, you start disliking your customer but you don't want to lose him. Why? Because he is just a customer.

In case he closes the debt, then, you forget about it and he will be back your true customer that you always honored and respected. In case not, you decide. We consider that each case should be dealt with upon the situation and facts surrounding it.

   b-  When your debtor is a close friend or from the family.

It is hard to request your money from a 20 year old friendship, or from your father.

In such cases, conflict of interest is represented in morals and principles, and the money is usually given for humanitarian reasons and purposes.

What should be done is either forgetting about the issue, or demand. In both cases you should wait and not rush things. By waiting you create a motif for asking, and he could come and pay you without asking.

If your situation imposes that you request your money back promptly, then you should deal with the issue in a smooth and convincing way. Remember that family problems are the toughest of all.

Never consider demanding is a bad thing, it is your right after all, whether the debtor was your brother or stranger. But there's a difference in the way you demand.

Our Law Firm does not handle legal conflicts between family parties.

Debtor's profile:

It is better to deal with a debtor having a high profile of positive deals and honesty. A clearing survey with his environment would be excellent.

Ask about him through his friends, his suppliers, his enemies and his competitors. They can help you in it.

Experience has a major role in this area. It can help you determine the true status of your debtor. Usually that experience starts developing the minute you got beaten down by a debtor. It is ironic, but we believe that most of us had once a bad moment with a debtor. The only thing that should be taken from that experience is learning not to commit the same mistake twice.

Is your debtor a womanizer, poker player or easy spender?

Knowing the purpose of your money is essential. Is it going to be for poker, investments, medical issues, scholar fees...?

If your money was to be spent on straights and full houses, your money will straight out with an empty house. What is worst then a bad player is his creditor.

Loan your money in two purposes:

     a-  In case the money was for investments. Good investments.
     b-  In case it was for humanitarian reasons.

As a conclusion:

In order to make an informed and intelligent decision, you should have as much information about the debtor as possible. This information includes the location of the debtor, whether the debt is collectible, whether future business from the debtor is possible and what it will cost to pursue.

Our Publication was achieved thanks to research and applied experience. We hope we cleared out what is needed to be known about Professional Debtors.

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