Notice To Creditors
Categories: Credit
Five years ago, our neighbor Vlad opened a bar down the street. At first, it was a pretty nice place to Happy Hour with the gang, but things quickly deteriorated. Today, it’s the skeeviest bar this side of the Mississippi. Like...not even Bar Rescue could save this dive. About a year ago, we let Vlad sweet-talk us into loaning him $10,000 to try and turn it around, but not even ten grand could de-skeeve the place, and now we’ve heard rumors that the business is filing for bankruptcy and closing its doors forever. “Good riddance,” we say, before eagerly opening the morning paper to scan for the notice to creditors we know is coming.
A “notice to creditors” is a public notice alerting anyone who has a claim on a business or estate that they need to come forward with those claims within the next certain period of time or forever hold their claim peace. We’ve got that $10,000 IOU from Vlad in our study somewhere, and there’s no way we’re going to let him just claim bankruptcy and walk away without at least trying to recoup some of our investment. The notice to creditors will tell us how long we’ve got to file our claim and how we need to file it, i.e., do we need to send a letter or meet someone in person or what? It will also tell us which court is handling the claims, since we’re going to need to go to court in order to try and get our money back.
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Finance, a la shmoop. What are collection agencies?
All right so sometimes when a man and a woman have trouble getting pregnant well [A couple kissing]
the guy has to go to one of these places, oh wait that's a different kind of [Stop sign appears]
collection agency, sorry just kidding. All right well a collection agency in the finance world
is seeking a different form of currency that is literal currency, greenbacks [Lots of money being counted]
cashola, whose money are they after exactly? Deadbeats, anyone who made a
promise to remit payments to pay back a mortgage, to pay off a credit card, to pay [Wads of money]
out for a jewelry thing at the mall, to pay for a tattoo down there as well. [Someone getting a tattoo]
You name it and then they defaulted on that promise to pay back the vendor, yeah
because when you sign your name on the dotted line and agree to pay back a
lender for their generous loan or extension of credit or agree to buy [Someone signing a contract]
something and pay someone 30 days later for it, paying them back is really not a
suggestion... Once you fall behind enough in your [Woman who is owed money does not look happy]
payments and you're a real deadbeat well they call a collection agency who then
tracks you down delivers nasty threatening letters to your mailbox and [Letter being posted]
if it's a New Jersey collection agency well they usually send someone to break
your kneecaps with a billy club, yeah they still do that... If the message still [Guy opens his door to find a man in a suit with a bat]
isn't getting through to you well the next step is for the agency to set the [Truck wheels]
wheels in motion that will result in the repossession of your home, your car, your [Repossessed notice being nailed to a house]
treasured signed set of Big Bang Theory trading cards you swore would be buried [Gravestone with the trading cards sticking out of the ground]
with you. So yeah if you choose not to make good on your obligations well you
shouldn't expect the people you owe to forget about you, or to go easy on you
like why should they would you do that for them, because they will stick a
collection agency on you, which is not a good feeling when you're up to your [Guy stood in a pile of bills]
knees in debt, or if you live in New Jersey up to your thighs... [Guy who has had his legs beat off in a pile of bills]