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Law firm offering free cures for debt collection blues

By Rodney Tanaka , Staff Writer

March 23, 2005 - Getting customers to pay their bills is a problem many small businesses face. "I have yet to come across a business that doesn't have collection problems,' said attorney Lisa Spiwak, who specializes in collection cases. "It's almost unheard of for a small business to have every bill paid on time.'

And when clients don't pay their bills, it can cripple a small business.

"Cash flow is really the crux of what small business runs on,' she said. "The whole system of running a business is dependent on them getting paid in a timely manner.'

Her law firm, the Westlake Village-based Spiwak & Iezza, is offering a free handbook on debt collection.

Debt collection is a race, she said. When someone is in financial trouble, they usually have several creditors coming after them. In some cases, the creditors with an aggressive, quick approach may ultimately be the only ones who get paid, Spiwak said.

"I have seen where creditors wait too long to start the process,' she said. "By the time they get aggressive there's no money to be had.'

If a business is owed money, there's a strong likelihood 10 other people are also owed money by the same company, Spiwak said.

The first step is talking to the debtor directly, finding out why the bill has not been paid. Then the business must decide whether to put them on a payment plan, take aggressive action or use another method.

Spiwak advises companies to get as much information as possible through the Internet and by calling other people the debtor does business with.

"If everybody's not getting paid, you need to move quickly,' Spiwak said. "When small businesses have troubles they typically choose the least important creditors to not pay.'

Gloria Mitchell, owner of Brito Bail Bonds in La Puente, said she first tries to work it out with the client, setting up some feasible way of reducing or resolving the debt.

But she has also gone to bail collection attorneys because they understand how bail works and the legal ramifications.

Bail bonds require a 10-percent premium and collateral, she said. A bond premium puts a lien against personal or real estate property, she said.

"One way or another we're going to get the money, but you can spend hours trying to collect from clients,' she said. "Within 60 days I turn it over to a collection agency to collect for me.'

Rodney Tanaka can be reached at (626) 962-8811, Ext. 2230, or by e-mail at rodney.tanaka@sgvn.com .

Temperance credit union robbed by man with note

TEMPERANCE — May 14, 2005 - The Temperance branch of the Monroe County Community Credit Union was robbed yesterday by a man carrying a motorcycle helmet, Michigan State Police said.

The man entered the credit union on Lewis Avenue, just north of Sterns Road, about 10:20 a.m. and handed the teller a handwritten note demanding that money be placed on the counter. The teller complied, and the suspect grabbed the money and left, troopers from the Monroe Post said.

As the suspect was walking away, a dye pack hidden in the money exploded in his hand.

Troopers and Monroe County Sheriff’s deputies, including the sheriff’s helicopter, searched the area for the suspect. Police described him as being in his late 30s, approximately 6 feet tall, and weighing about 250 pounds. He was last seen wearing a dark gray sweatshirt, blue jeans, and a white baseball cap with orange and red flames on the sides.

Anyone with information is asked to contact the Michigan State Police Monroe Post.