By Andrew R. Schwartz | Published August 20, 2024 | Posted in Confession Judgment | Tagged Tags: Commercial litigation, debt collection, debtor | Comments Off on Using Confession of Judgment in Illinois Debt Collection
Using Confession of Judgment in Illinois Debt Collection
A confession-of-judgment clause, often included in promissory notes, guaranties and other contracts, provides advance consent by a debtor to let the creditor take a judgment against them without a trial if the debtor defaults on the obligation. This means the creditor can obtain a court judgment for the amount owed without first notifying the debtor Read More
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Common Causes of Commercial Litigation
Commerce depends on agreements forged with a shared understanding of rights and responsibilities. But even the best-laid plans can go awry. Disagreements often arise and sometimes become legal disputes. Commercial litigation, a broad term encompassing disputes between businesses or business and individuals, can prove costly and time-consuming. Here are some of the most common causes Read More
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Spotting the Signs of Fraudulent Transfers
Imagine a scenario where a debtor, facing mounting financial pressure, strategically transfers assets to avoid paying what is owed. The dissipation of resources to hinder creditors from collecting their debts is known as a fraudulent transfer. The Illinois Uniform Fraudulent Transfer Act (IUFTA) allows creditors to challenge transfers made by debtors with the intent to Read More
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Collecting Debts Through Judgment Liens on Real Estate
For a creditor collecting on an overdue debt, winning a court judgment is only half the battle. The other half is enforcing the judgment. Debtors frequently employ underhanded tactics to avoid paying, which requires the creditor to take countermeasures. Among the methods that Illinois law allows for enforcing a judgment is placing a lien on Read More
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Unjust Enrichment Claims in Disputes Among Company Owners
Partners, members or shareholders typically have the same goals at the onset, but over time, differing priorities often become apparent. Some owners jockey for power, making self-interested financial moves or trying to induce other owners to give up their stake in the business. Some owners may accumulate more control and more money, leaving minority owners Read More
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Recognizing and Setting Aside Preferential Fraudulent Transfers to Insiders
A fraudulent transfer or conveyance occurs when a debtor voluntarily depletes or dissipates their own assets to the point that they cannot fully repay the claims of creditors. A preferential fraudulent transfer involves a payment or transfer of money or property to certain creditors when the debtor was already insolvent. The Uniform Fraudulent Transfer Act Read More
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What Are Your Remedies When a Debtor Appears to be Judgment-Proof?
Taking a civil judgment is a significant step toward getting paid, but it is not always the final step. The debtor may refuse to pay the amount ordered by the court, forcing the creditor to take collection measures. This can become extremely difficult when the debtor appears to be judgment proof. Judgment proof debtors are Read More
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What Recourse Do You Have as a Minority Owner Facing a Squeeze Out?
Disputes and conflicts often arise in small businesses with multiple owners. From time to time, we see majority owners use their inherent leverage to oppress the powers, rights and/or benefits of a minority owner (one with a non-controlling ownership interest in the business). In the worst case, the majority owners may try to “squeeze out” Read More
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When Can Asset Protection Strategies Be Considered Fraudulent Transfers?
Individuals and business organizations may legitimately seek to preserve wealth through various devices and methods known collectively as asset protection strategies. These often involve transferring money or other property into trusts and/or foreign bank accounts — which is perfectly legal so long as the transfer is not “fraudulent” in nature. A fraudulent transfer occurs when Read More
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Resolving Business Oppression Claims Among LLC Owners
In many businesses, including limited liability companies (LLCs), partnerships, and “S” and “C” corporations, unequal ownership responsibilities and rights often result in significant tension and disputes. The majority owner (usually a person or group controlling voting rights) often directs business operations and makes policy decisions at the expense of the outvoted minority equity interest holder. Read More
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