I feel as though it’s a common theme in my blogs but perhaps that’s because it’s so important. Don’t lose precious time when considering whether to file suit against a debtor. One of the tell-tale signs that suit is going to be necessary is when you attempt to work out a deal with the debtor before involving lawyers, allowing the debtor to make monthly payments and the debtor defaults. This should immediately send up a red flag that the debtor isn’t taking you kindness seriously. Once a debtor defaults without consequence it is nearly a certainty that it will happen again and that you will not see the rest of the promised payments.
Although we will sometimes facilitate a monthly payment plan, we only do so pursuant to a signed stipulation providing for the entry of judgment against the defendant upon default. This gives the debtor incentive to make the monthly payments and if they fail to do so, it gives the creditor the right to enter judgment and execute thereon.