Legal Question in Civil Litigation in Arizona

collecting from an on-line ''debtor'' who lives out of state

I run an on-line business and have learned that an out-of-state, contracted client recently sold thier business. They still have an outstanding debt to me. The new owners say they did not incure any outstanding debt when they purchased the company and I need to pursue the previous owners. I'm now having difficulty contacting the previous owners.

What is the best course of action for collecting the outstanding debt?


Asked on 4/08/05, 1:44 pm

1 Answer from Attorneys

Philip Owens Philip M. Owens, Attorney at Law

Re: collecting from an on-line ''debtor'' who lives out of state

First, contact the debtor by mail with a letter and statement. Don't worry about certification at this point. In this letter, you set a deadline for payment or suggest arrangements for installment payments. Hopefully, the debtor will contact you and say "oops, I forgot to pay, what do I need to do?". At that point you can work something out. If that fails, you must obtain an Arizona attorney to collect the debt. I do not know what size the obligation is so the cost can vary. In a lot of cases, the attorney will take a percentage of the recovery as his/her fee (also depending how large the obligation is). You will probably not be able to collect attorney fees from the debtor. But, there again, different circumstances apply. Consult your Arizona attorney on this. As far as the new owner is concerned, there are laws in most states that pertain to the sale of a business and the outstanding creditors of the old owner. You will need specific Arizona legal advice on this matter.

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Answered on 4/08/05, 4:12 pm


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