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.