Re: Business Leins

More | Report Post

On 4/08/04, Jim Miner wrote:
> I have small business in NY State. I buy my products from
> a company in VT. There was a company that I used to buy
> all of my product from but they had severe management
> issues and I stopped doing business with them. We had a
> few outstanding items. I owe them a little money, but
> they say that I owe more than I do, their records are
> incorrect. They say they have sent everything to an
> attorney in NY to place a lein on my business. What does
> that mean. Will it be against my bank accounts or what?
> I do want to pay them the amount that I owe (around
> $800.00) but not until they acknowledge that the other
> amount (about $1200.00) is incorrect.(they are charging me
> for orders that we cancelled during their crisis & for one
> peice that was loaned to me this until this Spring - which
> I intend to return)(None of this is in writing however, I
> do have the invoices from the new company that provided me
> with the peices that were previously ordered from them)
> Mostly my question is what is a business lein and how do
> I fight against it, will I be notified by someone and
> given a chance to tell my side?

A creditor can not put a lien on any property, levy your bank
account, or initiate any post judgement remedies without
first obtaining a judgement. This means they have to sue
you, serve you with a complaint, and give you an opportunity
to answer the complaint (or some other legal response) thus
telling your side of the story.

Now, most of those in the field of collections will suggest
that you request validation of the debt (i.e., proof that you
owe a particular creditor a specific amount). Once the debt
goes to a third party, in this case the attorney, they must
send you a 30-day notice prior to commencement of any further
collection activities. Read this 30 day notice very
carefully as it will set forth your right to request
validation. Your request must be IN WRITING.

This is a general overview that represents the norm. It is
not inclusive of the creditors entire rights or procedures to
enforce those rights. Best of luck

Re: Business Leins, 4/08/04, by Sir.

Business Law Chatboard

LATEST POSTS | BY TOPICS | SUBMIT A POST