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Commercial Debt Collection

Commercial debt collection is the process by which a commercial creditor causes a commercial debtor to pay its debts.  

A creditor that encounters a debtor that refuses to abide by its financial obligations may file a legal action against the debtor to recover money.


Kluewer Law P.C. represents creditors in commercial debt collection matters.

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Commercial Debt Collection

When a commercial debtor refuses to pay a commercial debt, the creditor may generally assert a lawsuit against the debtor for breach of contract. 


In order to prevail on a breach of contract claim against a debtor, a creditor must generally be able to demonstrate that there was a contract between the debtor and the creditor, that the creditor performed its obligations per the contract, that the debtor breached the contract by failing to perform that debtor’s obligations, and that as a result of the debtor’s breach the creditor experienced damages.

If, for example, a creditor ships products to a debtor and the debtor refuses to pay for those products as agreed, the creditor may assert a claim against the debtor for breach of contract to recoup the money that the creditor is owed. The contract between the debtor and the creditor may take the form of a detailed formal document or at times the contract may simply be an invoice or other document that evidences the transaction.

A Creditor Can Assert Numerous Claims in Connection With a Commercial Debt Collection Lawsuit  

Furthermore, where a debtor refuses to pay a creditor, the creditor may assert numerous other claims in addition to breach of contract claims.  For example, a creditor may sue a debtor per money had and received and unjust enrichment theories. Per money had and received and unjust enrichment theories, a debtor must often return money to a creditor whenever it is equitable for a debtor to do so. 

If a Debtor Defaults the Creditor Can Obtain a Default Judgment

If the debtor ignores a commercial debt collection lawsuit, or any other lawsuit, a default judgment may be entered against the debtor. In other words, if the debtor ignores a lawsuit, the creditor may be able to prevail in the lawsuit by means of a relatively straightforward uncontested process whereby the creditor can obtain a default judgment against the debtor. After the creditor obtains a default judgment against a debtor, the creditor may utilize all of the remedies available to a judgment creditor to collect on a default judgment. 

A debtor’s debt to a creditor is subject to interest. In California, where a contract is silent on the issue, prejudgment interest on a breach of business contract claim accrues at ten percent per annum. Cal. Civ. Code § 3289(b). In California, post-judgment interest generally accrues on a judgment at a rate of 10 percent per annum. C.C.P. § 685.010.

In Arizona, prejudgment interest on a business breach of contract claim is ten percent per annum, unless certain exceptions apply. A.R.S. §44-1201(A)(2). In Arizona, post-judgment interest is generally the lesser of ten percent per annum or a rate that is equal to the prime rate plus one percent, unless certain exceptions apply. A.R.S. §44-1201(B).

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Kluewer Law P.C.
Commercial Debt Collection Attorney

Los Angeles, California, San Francisco, California, Phoenix, Arizona

Kluewer Law P.C. has obtained numerous judgments and numerous recoveries in commercial debt collection litigations.


Kluewer Law P.C. represents creditors from all over the country and the world in commercial debt collection cases throughout California and Arizona.

Kluewer Law P.C. is headquartered in Los Angeles, California, and has locations in San Francisco, California, and Phoenix, Arizona. 

Joshua Kluewer is a commercial debt collection attorney based in Los Angeles, California. 

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