Question

It may not be worthwhile to pursue litigation when:

	A.	The customer has few assets
	B.	There is no evidence of tax liens against the customer
	C.	The company has not tried using a collection agency
	D.	The customer is petrified of the litigation process

Answer 1

Step 1 : Process of litigation simply means filing a case in the court of law. The litigation process is mostly related to civil lawsuits—where one party sues another, puts charges and claims legal remedy.

Step 2: Evaluate each of these statements individually:

A. Incorrect. Even if the customer has few or no assets, it should not stop a party to press charges against the accused. A party is entitled to all or any assets left, as far as it has a claim for that asset.

B. Incorrect. A imposed by the court of law to safeguard the payment of taxes upon a property. A tax lien may be imposed for non-payment of taxes owed on real property and also on failure to pay income taxes.

Even if there is no evidence of liens, there might be several other reasons to pursue litigation.

C. Correct. Debt Collection agency , the company should try using a collection agency first before moving to court to chase the defaulters actively and ask them to return their respective debts and loans.

D. Incorrect. Ignorance of law cannot be an excuse. A customer petrified or scared of litigation process cannot be protected for the default or crime he/she has comitted.