“It pains me to say this, but I may be getting too mature for details.” – Jerry Seinfeld
I can’t even recall what I had for lunch – so how can I expect a debtor to remember a deal we made together? I really shouldn’t be amazed when a debtor not only fails to make a first payment, but also fails to remember the amount of the first payment and the date it’s due, as well.
It’s really to the debtor’s advantage to have a short memory when it comes to payment schedules, which is particularly true if the debtor is struggling to maintain a cash flow and is making an effort to conserve – not spend – cash.
Promises are meant to be broken. At least, verbal ones. Once in writing however, the rules change a bit because the written word is more difficult to ignore (“forget”) than the spoken word.
In many offices, the mantra is that it just isn’t done if it isn’t in writing.
That’s a good mantra to adopt.
The fastest way to obtain a judgment against your debtor is to show the court an admission of the debt and promises to pay in writing. In other words, courts love to see clear-cut writings. Indeed, all of your contracts made with suppliers, customers and other third parties should be clear, concise and contain language that just can’t be misinterpreted. The same reasoning applies: if these matters have to be litigated at some point in the future, you want a slam-dunk case to be presented to the judge. So we put agreements in writing.
Thank you to Muller, Muller, Richmond, Harms & Myers Law Firm in Michigan for contributing this article. C2C Resources uses the law firm exclusively for any debtor accounts that require suit in the state of Michigan.