Laing Parent LLP

Collections

September 21, 2013 | Comments Off on Collections

Commercial Collection Services

We provide commercial collection services.  Due to our background conducting bailiff work, we are very adept at tracking delinquent debtors down and getting payment.  Sometimes, if the debtor is unable to pay in a lump sum, we enter into Settlement Agreements with the debtors, allowing them to make periodic payments over a set time.  Our Settlement Agreements contain provisions that allow us to register as secured creditors if the debtor fails to make payment under the agreement in the future.

This is why, when we do collections for clients, we will often enter into a Settlement Agreement providing for monthly or weekly payments.  The main benefit of such an agreement is that it will provide in its terms that it constitutes a General Security Agreement against the assets of the debtor and that you are authorized to register a Notice of Security Interest under the Personal Property Security Act (the PPSA) in the event of a default in payment.  This means that if the debtor defaults in making the agreed upon payments, we can seize and sell the debtor’s assets without need of getting a judgment and without need to share the proceeds of such sale with any other creditors (other than the Canada Revenue Agency in some cases).

There are a number of pieces of legislation that create security interests to allow the recovery of debt without the need or expense of going to court.  We specialize in the enforcement of these self-help remedies.

Credit Agreements

As indicated above,we insert clauses in Minutes of Settlement that create a PPSA security in the event of default, thereby allowing us to pursue a self-help remedy rather than a judgment.

We do the same thing with credit agreements.  If someone wants 30 days (or whatever you agree) to pay under a business-to-business supply contract, the terms of our credit agreements create a security agreement, again providing for a self-help remedy under the PPSA in the event that the customer doesn’t pay on time.  This is especially important if you are providing services instead of goods.  Goods we can repossess, but professional services we cannot.  We make sure you get paid, regardless.