I. Extending Credit

A. Unless you are paid in advance for goods or services, you are extending credit; you are a lender.

B. Importance of a written credit extension agreement

1. Essential information concerning the borrower/debtor

2. Essential information concerning the assets of the borrower/debtor

3. Agreement to pay interest and costs of collections, including attorney fees

4. Consent to convenient venue

5. Waiver of Homestead Exemptions

6. Certification as to completeness and correctness of information provided

7. Signatures

C. Special problems with corporate borrowers/debtors

II. Collecting Delinquent Accounts

A. Statutes of Limitations

1. Collectability decreases with age of account

2. Affirmative defense

3. Three vs. five years; revival by written acknowledgment

B. Demand letters

1. From lender/creditor

2. From attorney

C. Filing Suit/Obtaining Judgment

1. Jurisdiction and venue for filing suit

2. General District Court vs. Circuit Court

3. Attachment before judgment

4. Trial

a. Uncontested cases

b. Contested cases

5. Unauthorized practice of law problems

D. Post Judgment Procedures

1. Debtor Interrogatories

a. Lender/creditor self help

b. Subpoena documents

c. Special remedies: Rule to Show Cause; Capias; jail for contempt

2. Garnishment

3. Levy