You were awarded a monetary judgment. Now what?
1. Wait to act until the end of the appeal period.
After a judgment is issued, debtors have a period of time in which they can file an appeal. Beginning your collection efforts too soon is not worth the investment of time, energy and money. Debtors are not required to pay during this appeal period. Check with your state’s laws regarding the judgment appeal process and duration.
2. Obtain a judgment lien as soon as possible.
Find out if your judgment debtor owns any real property. If so, file for a judgment lien by recording your judgment in the county in which the real estate is located. This will ensure you get paid first in the event the property is ever sold, and you also secure your rights to collect if your judgment debtor files for bankruptcy.
3. Ask, but don’t tell.
“Ask and you shall receive.” Sometimes, by simply requesting the debtor pay you, they will actually do so voluntarily. However, be careful. You should ask, but don’t tell. Ask them to pay, but don’t tell them your strategy if they don’t comply. You don’t want them learning the other methods in which you can collect and put a stop to them before you’re able. Some debtors will cleverly hide and transfer assets to avoid being stuck under your thumb if they get scared. Be careful not to intimidate or threaten your debtor.
4. Explore judgment recovery methods.
Judgment recovery methods and tools include asset searches, skip-tracing, wage garnishment, personal property liens and bank levies. Speak to a judgment recovery specialist, or explore your state’s laws for more information.
5. Locate assets.
The easiest assets to find are bank accounts, employee wages, vehicles and real estate. A judgment recovery specialist can help you do an asset search to discover any assets the debtor may have. You also have the option to dig a little deeper with a debtor exam. A judgment recovery specialist or attorney can assist you with filing for an examination which would allow you to question the debtor about assets they may have and where they are located.
7. Seek professional help.
Hiring a judgment recovery specialist saves you the stress of trying to figure everything out yourself. Most debtors will not voluntarily pay, which means your judgment could remain unpaid for years until it expires. A company like Judgment Enforcement Solution, Inc. will take on the judgment, locate your debtor and all their assets and work to collect using all methods available by law. The best part about it is, they don’t get paid until you get paid, as they work off commission.
8. Renew your judgment!
Look up your state laws on judgment and lien renewal. Judgments will expire after a set number of years, depending on your state. Be sure to renew all judgments and liens before they expire. If you hire Judgment Enforcement Solution, Inc., they will file all necessary renewals as they come due.
9. Prepare to stick it out for the long haul.
People’s lives are constantly changing. Your unemployed debtor with no assets may find himself with a great job and a new home in a few years. Be aware of these changes as it can make all the difference as to whether or not you get paid. This is another great reason to hire a professional. Companies who specialize in judgment recovery, like Judgment Enforcement Solution, Inc., regularly monitor the debtor’s assets automatically. Regularly tracking your debtor may end up being the key to your success.
For questions about the best strategy for collecting your judgment, please contact (877) 879-9880.
Disclaimer: The information, opinions and materials contained in this blog are provided for general informational purposes only and are not intended to be legal advice. Being general in nature, the information, opinions and materials contained in this blog may not apply to any specific factual and/or legal set of circumstances. No attorney-client relationship is formed nor should any such relationship be implied. The information, opinions and materials contained in this blog are not intended to substitute or refute legal advice given by a licensed attorney. You should not act upon information, opinions or materials contained in this blog without seeking advice from a licensed attorney in your own state or jurisdiction. Laws change frequently and vary in different locations. If you require legal advice, please consult with a licensed professional attorney in your state or jurisdiction.
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