While collecting monetary damages from judgment debtors can be difficult, it is by no means impossible. The good news is, with a little patience and research, we can help. With our help it is surprisingly easy for us to show how to collect on a judgement
The civil court system in the U.S. has a history of helping people who have been wronged to gain justice. This is especially through monetary judgments. While the system makes it easy for aggrieved parties to sue others, it doesn’t make it so easy for the aggrieved parties to collect the money that has been awarded to them. This situation has led to the creation of a large class of people who are known as judgment creditors, people who have presented legal proof that they deserve monetary damages, but who have also found it difficult to collect on their debts from judgment debtors, or those who owe the money.
How to Collect on a Judgment
There are many effective ways to go about collecting a court-ordered judgment, including the following methods.
- Ask the Judgment Debtor Directly. While this method may seem simple at first glance a surprising number of judgment debtors will pay what they owe if they are asked politely. This is especially true if they are informed that their unpaid debts may affect their credit ratings. It may be wise to offer to create a payment plan that doesn’t create hardship for the debtor.
- Apply for a Writ of Execution. Obtaining writs of execution can give the judgment creditor the right to ask law enforcement help. You can have them seize and sell the debtor’s property in order to pay off outstanding judgments.
- Garnish Wages. Another effective method for collecting judgments is to ask the relevant court to appropriate a portion of the judgment debtor’s income. Garnished wages can help in order to pay off the outstanding debt.
There are certainly other ways for judgment creditors to collect outstanding debts. Those creditors who apply the tactics mentioned above stand a very good chance of eventually recovering the money that they are owed. Let us know if you want help on how to collect on a judgement.
Now that you have obtained a judgment worth a significant dollar value. The next step is to take the necessary measures for collecting judgment money owed to you. There are a number of exciting avenues through which you can make efforts to accomplish this goal. Then you can cash in on your judgment.
Read up on the FDCPA Laws
When it comes to collections, you are required by law to operate in accordance with the Fair Debt Collections Protection Act (FDCPA). Becoming familiar with what you can and cannot do by law when collecting judgment money is not just smart to know, it is the law. Fortunately, the FDCPA is a fairly straight forward document to read. It is intended to help collectors and debt owners know their rights and responsibilities under the law.
Petitioning By Mail
When it comes to collecting money owed to you through an acquired judgment, sometimes it is best to jump right into the process. You can do this by sending the person who owes you money a letter. First contact is a very important step. You just want the person who owes you money to know that you are very approachable and are ready to receive payment. In the letter you will want to introduce yourself or your company, establish that according to your records they owe you money. Let them know you have acquired from the name of the original party, state the amount owed and invite them to contact you if they have any questions or issues that need to be addressed. This includes providing the recipient of the letter with your contact information at the end. When you send this letter, be certain to send it by certified mail with return receipt. This allows the recipient to know you mean business without being negative towards the recipient. Remember, in this business you have to be firm, but you want to also keep it professional!
Make an Offer They Cannot Resist
Another letter you can send to entice a person to pay up quickly on a judgment is to offer the recipient a discount. Sometimes, simply making the goal of paying off a debt more attainable for the recipient, is just the ticket to getting paid. While you are still retaining enough profit for your efforts. Never underestimate the power of an enticing debt discount to a person. The person in debt typcially want to avoid being bothered with further collection efforts. This might just be the easiest way to get people to pay up and pay up fast. Remember, when sending out mail offers to a person who owes you on a judgment, always make it easier for them to pay you by including a self addressed, stamped envelope for them to use. The trick to collecting on a judgment is to remove as many barriers as possible to encourage rapid payment.
Winning a court case does not exactly lead to winning results. Receiving a judgment in your favor is only one half of the problem – the other half is collecting. Like most people, you could spend years struggling to obtain money that you won legally. For one less burden, transfer your judgement collection to a company that eases the unnecessary hassles of collecting.
Reasons for the Hassles
There are a few common reasons why collecting is difficult or impossible. The most common reason is that debtors refuse to acknowledge the judgement. They deliberately avoid wage garnishments by filing for a suspension, hiding money or changing personal information. Many debtors want to pay the judgement, but cannot due to lack of money or employment. When no wages are made, the process of wage garnishment is impossible to carry out.
Solutions to Collecting Problems
Selling your judgement is the fastest, easier solution to receive your money. The statistics show that most judgements are never collected, so selling is the only solution available to most people.
Forgetting about the judgement is never an option. Even if the debtor dies or changes his or her identity, it’s still possible to collect the money. There are options to settle any judgement regardless of the amount of money involved or the age of the case.
There are companies willing to buy the judgement off your hands. You no longer have to deal with the hostile, stubborn acts of debtors who refuse to pay. Even experienced collection agencies spend years trying to track down difficult debtors.
When you sell, you never have to reenter the courtroom and file a new case or get into contact with an old lawyer. For people who have walked in and out of courts for years, selling the judgment is instant relief to a long-term problem.
Like most people, you feel elated when you win a court case, but that good feeling wears off quickly. Soon enough, you realize that the ordeal is far from over. After spending years waiting in court, there is no reason to continue waiting for results. Submit a free online quote on your judgement collection, which includes the necessary court documents, and receive the cash immediately.
You’ve gone to court and gotten a judgment against someone that owes you money. That’s great, but it’s only the beginning. The next step is collecting the judgment. Here are our four tips for how to collect on a judgment:
Hey, it can’t hurt to try. Some debtors pay their debt when they receive a professional letter asking them to pay. Make it clear to them where to pay and how much they owe.
Find Assets that are Accessible
If your debtor is employed, you can file a wage garnishment. You file certain paperwork with the person’s employer, and the employer has to pay you directly from the person’s wages. There are specific rules for when this is allowed and how much you can garnish, so it’s important to read your state’s laws carefully for how to collect on a judgment.
Bank accounts are another great place to look. You can ask the court to allow you to take money directly from a person’s bank account. Like wage garnishments, there are specific rules for each state, and it’s important to follow them.
A Debtor Exam
If you’re not sure where your debtor might have hidden assets, some states allow you to conduct a debtor’s exam. In that case, a person has to testify under oath about all of their assets. This is also a good time to talk to the person face to face about creating a plan to satisfy the debt.
Sell your Judgment
Sometimes, it’s not practical to wait to collect on the judgment. You might need money right away. You might not know all of the ins and outs of state laws and garnishment procedures. If that’s you, you might consider selling your judgment.
There are companies that are in the business of buying civil judgments. You sell the judgment for a price that works for you both. You’re done worrying about the judgment. These companies have professionally-trained experts that work on collecting the judgment. You just enjoy your cash as soon as you make the sale.
A court judgment is a good start, but it’s just a piece of paper. The sad reality is that most judgments aren’t actually collected. If you’re working on an enforcement of judgement, here’s what you need to know:
Some property is exempt
You can go after a person’s assets to try to satisfy your judgment. If they have classic cars, a coin collection, famous art or really anything of value, you can try to seize it to satisfy your judgment. However, keep in mind that certain property is exempt.
The exact rules vary by state, so it’s important to read up on the local laws. In some states you can take vehicles, and in other states you can’t. There might be exemptions for household furnishings. Once you’re clear on what you can seize, personal property can be a helpful way for enforcement of judgement.
You can look at real property, too
If you have a judgment, you can place a lien on a person’s real property. That means that if the person sells the property, you get paid before they get anything from the sale. Again, each state operates a bit differently. In some states, a lien automatically attaches when you have a judgment. In other states, you have to register the lien with the right government office.
Consider an assignment order
Most people get a tax refund. If a person owes you money, you might be able to get their refund before they do. This can apply to other types of irregular funds that people receive such as commissions or dividends. If the person you have a judgment against doesn’t perform regular work for pay, this can be a great way for enforcement of judgement.
Work with a collection company
If you don’t have the time, knowledge or energy to do all of the tedious collection work, you might want to work with a judgment company. There are companies that buy your judgment from you. You can leave the tedious collection work to them and have immediate cash in your pocket.
Offering Your Judgments For Sale is the Fastest Way to Get Your Money
Judgment Collections Agencies
Judgment collection agencies are experts at forcing people to pay what the court ordered them to pay. This is good because most people look at their judgment order and wonder what is going to happen next. After all of the time and money that you have spent trying to comply with all of the rules and requirements of the legal system, you end up with a piece of paper of questionable value. It is unfortunate, but most people don’t understand how to turn a court judgment into actual money. This is where a professional judgment recovery business can solve all of your problems.
A judgment collections company will offer you several options to choose from in order to turn your judgment into cash. The first option is to sell your judgment to a judgment enforcement company. In this situation, you sell all of your rights to the collection company and then they can try to collect on the judgment as if it was their own. The amount of money that you get paid for your judgment depends upon a several factors. Judgment collections companies evaluate judgments for sale based on factors including the amount and age of the judgment and financial status of the debtor.
If you don’t want to sell your judgment, you have the option of consigning the judgment to a collections company that will attempt to get you your money in exchange for a set fee. This is a good option because it saves you all of the hassle involved in tracking down the debtor and his assets. No matter what, it is always better to let a company with the knowledge and expertise in collecting judgments do the work for you.
Sell Judgement to Collection Agency to Cut Your Losses
For businesses of all sizes, there may be a time that you must take someone to court for the money they owe you. This often leads to a judgement settlement. However, it does not mean you will receive your money. A judgement is simply a legal document showing that the person owes you money. Many businesses often choose the option to sell judgement to collection agency so that they can cut their losses and move on.
When you sell judgement to collection agency, the collection agency will actually pay you for a certain percentage of the value of that judgement. This means that when the collection agency pays you for the judgement, you no longer have to worry about trying to collect any money. If the collection agency is able to collect money, they keep it. If they do not collect the money, the collection agency is out the money they paid to you.
Many businesses find that by choosing to sell judgement to collection agency, they are at least able to cut their losses. Businesses receive a portion of the money that is owed to them. No company wants to lose money, but you have to consider the possibility that you will never collect on that debt. Collection agencies are experienced in such matters, so they stand a better chance of actually collecting on the judgements that they purchase.
Deciding to Sell your Judgement
The decision on whether to sell judgements to a collection agency may be a difficult one for your business. Therefore, some things to consider on whether you wish to sell these judgements include:
- how long the judgements have been in place
- whether you have been able to contact the person who owes you money
- and how much money is actually owed to your business.
Businesses often do not have a choice regarding their judgements. They need money now and. Even if you sell your judgements to a collection agency, you are still collecting a portion of what is owed to you. Only you can determine whether or not it is in your best interest to sell the judgements to an agency.
It frequently comes as a surprise to people when no money is received after they have won a judgment. Awarded amounts and the actual total of funds collected are often very different. It may even cost the business or individual more money and time to collect on a judgment than it did to win their initial case. It is frustrating because it is a situation that can stretch out for years and lower business profits and damage personal finances. There are answers and methods like contacting judgment collection services may not ensure every cent is collected, but it will increase the speed and amount of money that is received.
Talk to Debtors
Start the way professional judgement collection services handle their accounts. Contact the debtor directly. Wait at least 30 days after the original court date to prevent encouraging the debtor to appeal the case. Send a friendly, but insistent letter once the appeals process is expired. Detail the amount owed and offer some flexibility on accepting payments. This is a good method when the debtor is known to not have the assets or the income needed to pay immediately. An aggressive approach could encourage these types of debtors to file bankruptcy.
Use Legal Options
Some people will not pay even when they have the ability. Using the legal system is often the only option when dealing with them. Bank levies, wage garnishments and levies against their property are all potential options. It requires using a local sheriff or levying office to collect the funds. Not all options are legally available in all areas of the country and there are restrictions on how much is allowed to be garnished and what type of income is able to be seized.
Get Some Help
Using a judgment collection services is the solution to choose when people are ready to save time, money and avoid researching what is and is not allowed in each state. These services take on the effort and their professional standing helps to coerce stubborn debtors into paying sooner. The best part is that many will only charge a commission on fees that are collected. This makes it much more cost efficient for business owners with multiple judgments to enforce.
Avoiding a lengthy ordeal without giving up on a legitimate claim may require professional help. The responsibility of the court is to determine when money is owed. After the decision is made they will not review the case automatically to determine if the debt is paid. They do not issue any immediate orders regarding the seizure of money or property. They do not even offer inexperienced debtors any advice about managing collections. It is a process that many people learn about as they work through the system.
What You Need to Know about Court Judgement Debt Collection
Few people enjoy going to court and most try all available options before filing a lawsuit, but sometimes there’s just no other choice. If you’re one of those who have endured the stress of litigation and have won, you probably feel vindicated. In reality, the battle is just beginning. The judge may have found in your favor for a specific dollar amount, but court judgement debt collection is 100 per cent your responsibility.
A judgment is a legal order declaring you, the prevailing plaintiff, as the judgment creditor and the losing defendant as the judgment debtor. This gives you the right to collect the judgment amount from the debtor’s assets, but no court action is taken to persuade the debtor to do comply with the judgment and pay you.
In many cases, the defendant cannot be located or simply ignores the proceedings and fails to appear. Although you do not need to know where the debtor is physically located to attach his or her assets, it certainly makes it easier if you know where to start looking.
Recognizing Exempt Assets
One important factor to realize before proceeding with your court judgement debt collection is that some people may be judgment proof; that is they may be insolvent with no income or may have property and income that the law recognizes as exempt from collection.
In the event you are successful in locating your debtor’s assets, collection procedures must be followed precisely. For instance, there’s a difference in a proceeding to garnish a person’s wages as contrasted with levying an individual’s bank account. Not only will your collection efforts possibly fail, you may subject yourself to personal liability if you act improperly.
Consider Consulting a Professional
Debtors will often pay as soon as the judgment is entered, but if you are one of the unfortunate judgment creditors who are having difficulty collecting, you may wish to consider a judgment solution company that can provide advice and potential options. Judgment assignment, which is essentially a contingent arrangement or outright judgment purchase, may be appropriate for your particular situation.
Going to court is never pleasant. But, if someone has done you wrong, sometimes you have to sue them to make things right. You may go to court and pay all of the fees and follow all of the rules and eventually win your case. Unfortunately, when you win your case, you don’t walk out of court with your money. The court issues a “judgement” on your behalf stating that the defendant owes you some money. But actually collecting on your judgement can be quite difficult. Fortunately, you can call a judgement recovery business to help you get your money.
Every year, courts in your state issue thousands of judgements. Unfortunately, it is a sad fact that most people never collect a penny on the judgement that was granted them by the court. This is especially true of judgements issued by small claims courts. If you don’t know how to go about collecting a judgement, you are not alone. Nationwide, about 80 percent of all judgements go uncollected. The reason for this is that most people simply lack the experience necessary to successfully enforce their judgements. Fortunately, people can turn to a professional judgement recovery business to get them the money that they deserve.
You went to court and fought hard to win your case. Now, after all of your trouble, you find yourself stuck with this seemingly worthless piece of paper called a judgement. If you find yourself in this situation, don’t despair. There is hope. You need to call a professional judgement recovery business to help you turn your piece of paper from the court into cash. When you talk to a professional, you will realize that you have more options available than you think.
When you talk to a judgement recovery professional, you will understand that you have several options to choose from concerning collecting on your judgement. First, you can try to sell your judgement outright to the company. The judgement collection company will evaluate your judgement and make you a cash offer on it. In this case, you sign over all of your rights and the company will attempt to enforce the judgment and keep what they can collect. Another option is to assign your judgement to a collection company. In this situation, a judgement recovery company will work to collect your judgement in exchange for a fee. No matter which option you choose, you win. Don’t waste your time and money trying to collect a judgement on your own. Trust the professionals to get the job done right.