The winning party in a debt collection lawsuit is known as the judgment creditor. The losing party is the judgment debtor. Creditors are tasked with collecting the monies owed them, which isn’t always easy. Needless to say, collecting from debtors who lack either the resources or willingness to pay can be difficult.
Are you a judgment creditor struggling to get paid? If so, I would be willing to bet you just want to put the whole thing behind you. You just want to get paid as quickly as possible so that you can move on. Well, I cannot give you any guaranteed ways to reach your goal. But I can offer you the following four tips:
1. Bring in a Professional
At the top of my list is bringing in a professional. My first choice would be a specialist collection agency, like Salt Lake City’s Judgment Collectors. Specialist agencies that do nothing but collect judgments are the most qualified to handle the job.
If an agency like Judgment Collectors wasn’t available, I would turn collection over to an attorney with debt collection experience. Attorneys are the second most qualified professionals to handle debt collection.
As for the reason behind bringing in professionals, it’s pretty simple: judgment collection is not easy. You need to follow certain procedures. You need to play by the rules. And unfortunately, you are often dealing with debtors who either cannot pay or have no intention of doing so. Professionals know how to address all these challenges.
2. Search for Assets Covertly
Professionals have an advantage in that they know how to search for debtor assets. They know which records to look at, how to interpret data they find during their searches, and how to leverage tools like social media and credit checks to find what debtors may be trying to hide.
In the absence of a collection agency or attorney, I would advise that you search for assets covertly. Use things like public property records in court records to uncover whatever assets might be available. But don’t let the debtor know you’re doing so.
You are only going to clue the debtor in once you have found his assets. You can then let him know what you found, giving him motivation to find some way to pay. Because once you know about his assets, you now have something you can attach a judgment lien to or seize by way of a writ of garnishment or execution.
3. Consider Proprietary Databases
If you’re a business owner looking to uncover a debtor’s assets, you might invest in proprietary databases. Those same databases that fuel the sales funnel can prove invaluable in uncovering both liquid and non-liquid assets. A proprietary database could represent a significant investment in the absence of valuable information from public sources.
4. Make Use of Judgment Liens
If you are uncomfortable with the idea of seeking a writ of garnishment or execution, at least consider using judgment liens. A judgment lien is similar to other types of liens in that it establishes a legally binding financial interest in the debtor’s property. Placing a lien on a piece of property prevents the debtor from selling or transferring it without paying what he owes.
There are a few additional tips I could offer. However, space limitations dictate closing this post. Here is the main takeaway: you have lots of tools at your disposal as a judgment creditor. Either bring in professionals or learn how to use those tools yourself. They could make the difference between getting paid and having to eat your losses.
