#TuesdayTips – Economical Collections for Business Owners

On this week’s #TuesdayTips article, ERA Law Group, LLC wants to help business owners prevent collection nightmares.  It’s frustrating when you provide a service, send an invoice, and never receive payment.  As a business owner, you want to ensure your efforts to collect don’t exceed the amount you’re collecting.  There are many options to collect outstanding debts and even more ways to prevent a collection nightmare.

First, if you don’t have a contract, you need one.  Contracts are the heart of your relationship with your customer. There are certain provisions you’ll want to ensure are in your contract to make it enforceable in Court.  For example, your contract should permit several legal remedies upon breach by the customer, a provision for attorney fees in the event of breach, interest for late or non-payment, etc.  Second, ensure that you have the necessary and required licenses.  For example, contractors cannot enforce contracts against homeowners if they are not properly licensed with the Maryland Home Improvement Commission.  Third, do not begin any work until you have a signed contract.  If you have any amendments or change orders, get them signed.  With email, text messaging, scanning, etc., there’s no reason not to have a fully executed agreement within minutes.

If you have a contract and your customer hasn’t paid there are many legal remedies available.  For example, if the customer has made any payment by check, you can garnish their bank account.  You can sue for breach of contract and in some cases even get your attorney fees.  If a check bounced, you can collect a fee and sue for additional fees.

Don’t forget, a Maryland corporation must be represented by an attorney in both District and Circuit Court! Call ERA Law Group, LLC today at (443) 906-3566 and ask us how we can help you!

Getting divorced?

No one enters a marriage thinking or wishing for it to end.  But, it happens.  If you find this is happening to you and your marriage, know that you are not alone.  Marriages end, homes are split, and the once unified family is now divided.  Whether you’re the person seeking the divorce, the couple who mutually agree to divorce, or the person who has just been shockingly served, here’s what you need to know in Maryland.

Each family situation is different.  There tends to be two roads to divorce: by agreement between the parties or by a Judge.   If you have agreed how to handle any joint property and you don’t have minor children, you can get a divorce in Maryland without having to wait for any specific time period.  This type of divorce is by Mutual Consent.  If you do have minor children and/or maybe you haven’t settled all your property issues, you still don’t have to engage in war.  Maryland provides a voluntary divorce option for couples to divorce after a 12-month separation.

Unfortunately, divorce does tend to bring out the worst in couples.  In a situation where there has been a loss of trust, loss of a partnership, and, critically, a loss of communication, you need to be prepared to take action.  First, know what assets exist and the approximate value.  This may include property, retirement, personal property, vehicles, etc.  Second, know what type of debt exists and how much.   This can be in the form of a mortgage, outstanding credit card, a car loan, etc.  Be aware that, for purposes of the divorce in nearly all circumstances, any asset or debt is joint – regardless of how either is titled – if it was accrued during your marriage.  Lastly, and most importantly, prepare.  Prepare for your monthly expenses, prepare for your children, prepare for you.  Create a budget and adjust accordingly.  You cannot be certain how the Court is going to rule regarding alimony or a monetary award.  You may be confident that you will be able to remain in your home but what if that’s not the case?  Your spouse may have once promised to financially support you but now things have changed.

You may require the assistance of an experienced family law attorney and this preparation will only make for a more successful case.  Just remember, this too shall pass and you are not alone.  Call me today at (443) 906-3566!