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.
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.
When you file a lawsuit against another individual or entity, you may have a significant need to collect funds that you are legally entitled to. For example, you may have sued someone for damages after a car accident, and you may need access to those funds to pay for medical bills, property repairs, lost wages and more. You may have successfully won your lawsuit, and you may have been pleased to get a sizable judgment as a result. However, the unfortunate reality is that collecting a judgement can be more difficult than you might think. Some people must wait for years for their judgement to be paid, and the majority of judgements are never paid at all. Finding an effective way to collect the funds that are owed to you is important and even a necessity in some instances.
Selling Your Judgement
There are two primary methods available for collecting a judgement when the plaintiff will not pay. One option is to sell your judgement to a third party. There are companies that will review the details of your case and ruling and that may make you a cash offer for your judgement within a few hours. Generally, this offer will for less than the full face value of the judgement. This is because the buyer does assume some risk associated with non-payment, and some work may be required to enforce payment in many cases.
Assigning Your Judgement
Another idea is to assign your judgement. When you assign your judgement to another party, the third party will work hard to generate payment on the judgement. You will receive the proceeds, but you will pay the service provider a fee for the work they do if they are successful in their efforts. A common method that is used to generate payment by the plaintiff is to work through the courts to set up a garnishment of wages or to tap into other financial resources and assets that the plaintiff has. There may be no cost to you unless the efforts are successful.
Many people who file a lawsuit against another party have a strong financial need for proceeds from the lawsuit. Winning the case in court, however, is only part of the battle. The other factor to consider relates to getting the plaintiff to pay the money you are legally entitled to. If your plaintiff is not paying money as required by court order, you can use one of these two methods to generate results.
Ensure your Labor board judgment is enforced
When a labor board agrees with you and a judgment has been held against your employer or former employer, it feels good. However, the Labor board judgment is just the beginning. The ability to actually enforce your judgment, and obtain your money, can still be difficult.
Often, enforcement can fail due to a technicality. A Labor board judgment is only enforceable against the legal entity named in the judgment. Some employers may do their day-to-day business under one company name, but their formal legal name is different. If judgment was not filed using the legal name of the employer, obtaining payment can be difficult.
Similarly, an employer may go out of business before the judgment is enforced. Or if the judgment is against a subsidiary of a larger company, the employer may close that subsidiary and transfer operations to a different subsidiary. In either scenario, the company named in the judgment no longer exists to issue the payment.
Even if the employer continues to operate, payment may be difficult if the employer files for bankruptcy. You become one of many creditors of the company, and may be forced to delay receipt of your money. In some instances, there may be too many creditors for you to receive full payment, and you many receive only a portion of the judgment.
Unfortunately, there are also employers who just refuse to pay judgments. When an employer refuses to pay for any reason, you must spend more time and incur personal expenses to work with the police or the courts to enforce the judgment.
You can ensure you receive payment for the judgment, and that you receive it quickly, by transferring the judgment. By selling your rights to the judgment, you receive immediate cash and the enforcement of the judgment is left to a specialist. You are free from the time, effort, expense and stress of contacting the employer yourself. Start enjoying the money for which you had already worked so hard!
Debtors frequently are unable to pay for their debts, due to the fact that they are financially troubled, have virtually no assets to recover, or are skilled at hiding their personal assets. Learning how to collect on a judgement is key if you are serious about recovering your assets.
When you are addressing the first condition, you could work together with the debtor if they are willing. The individual’s financial predicament might be short-term. If that’s the case, you could possibly work out a repayment plan or even make arrangements for future payments. If you’re dealing with the other circumstance, you may have some work to undertake. You may also find yourself back in the courtroom. At this stage, you will need to determine whether it’s truly worth your time and energy to go after your hard earned money.
Getting Your Money
Should your debtor be resistant to pay when they possess the means, ensure you get your local sheriff engaged. There are three possibilities: a standard bank levy, income garnishment, or even a lien on real estate.
Initially, you will need to obtain evidence of your right to collect from your local small claims court. Although the identity of the court-issued file could differ, it’s commonly known as writ of execution. The local sheriff will serve documents to the suitable association in order to collect from a debtor.
Seizing funds through your debtor’s accounts is known as a bank levy. You will need the bank name, account number(s) with the precise name of the account holder.
Your next approach to contemplate is a lien on real estate. Should the debtor have property or home, it is possible to claim a portion of its valuation. You could generate a lien by way of registering your judgment in the county in which the debtor possesses real estate.
The final and easiest method to collect can be garnishment of wages. Should the debtor be employed, you are allowed to collect as much as 25% of his / her income prior to the judgment being paid.
Call for Aid
If you do not wish to accept less and the other approaches don’t interest you, you have one remaining option to consider. You could contact an expert. A collection company can keep on top of the debtor plus collect on your judgment for a small fee. This means you will need to consider whether or not it will be worth the cost.