Timing is Everything

By Ken A Rosen

In the realm of debt collection, the age-old adage "timing is everything" couldn't be more relevant, as illustrated by the enduring impact of the Barnhill v. Johnson (1992) Supreme Court decision. Despite its age, this legal precedent, cited a staggering 807 times, serves as a poignant reminder that the efficiency and speed of debt recovery can make all the difference.

The arduous process of chasing down overdue debts is a familiar struggle, often involving relentless phone calls, unfulfilled promises, and protracted negotiations. The pivotal question arises: How can one ensure the fruits of their labor aren't forfeited to a bankruptcy estate after investing substantial effort into debt collection?

Barnhill v. Johnson offers a crucial lesson – time is of the essence. When sensing that a customer is on the brink of financial disaster, proactive measures are imperative. Whether it's personally picking up the check or delegating the task to a trusted representative, the key is swift action. Depositing the check immediately not only expedites the collection process but also mitigates the risk of excuses like "I'll get to it ASAP."

For those skeptical of the urgency, the Barnhill decision serves as a cautionary tale. In-depth insights from this landmark case suggest that overreacting in the face of potential financial downfall is a prudent strategy. The article delves into practical recommendations such as employing overnight couriers, demanding bank checks, or opting for wire transfers to secure funds promptly.

In essence, the article encourages a proactive and strategic approach to debt collection, drawing inspiration from the timeless wisdom encapsulated in the Barnhill v. Johnson decision. By assimilating these lessons, businesses can not only enhance their debt recovery processes but also safeguard their hard-earned collections from unforeseen pitfalls.