Have you won your lawsuit and received a judgment? What’s next?

Collecting judgments can be a daunting task, but learning the best methods to collect judgments can transform this challenge into a manageable process. In this detailed guide, you’ll find expert advice on strategies and techniques, as well as professional services to assist you.

We cover everything from lien rights and asset discovery to hiring experts and proposing settlements. Read on to discover the best practices, legal implications, and practical steps to ensure you collect your judgments effectively and efficiently.

What Does Judgement Mean in Collections?

In debt collection, a judgment is a legal decision affirming that a debt is owed. Once obtained, creditors can use methods like garnishing wages or seizing assets to collect. It’s important for creditors to understand the process of obtaining and enforcing judgments to effectively pursue delinquent debtors.

The 10 Best Methods For Collecting Judgments  

1) Strategy

Debtors have the right to appeal. Check with your state on how long a defendant has until he must file an appeal. Don’t bother with collection efforts until then. During this period, defendants are not obligated to pay. 

2) Lien Rights

There is always the possibility that your debtor could file bankruptcy. Your next move is to preserve your ability to collect the judgment by getting a lien right. You do this by finding out if the debtor has any real property. This will get their attention and sometimes provoke them to start paying you.

A real estate lien is obtained by recording the judgment with the recorder’s office in the county where the real estate is located. This will hinder the sale of any real estate property without paying you off first, and you retain rights in case of bankruptcy.

3) Ask for the Money

They might pay you! Tell them the outstanding judgment debt will be placed on their credit report. Don’t give away any more information than that. You don’t want the debtor to learn about other ways you intend on getting your money.

Some debtors become savvy and may start hiding and transferring their money and valuables. Do not harass or intimidate the debtor; be open to settling for less than the total amount or agree to arrange payments over time. 

4) Other Options

 

Look at all your options, which include wage garnishments, bank levies, and personal property liens. 

5) Find the Assets

With the assistance of an attorney, you can hold a debtor’s exam or file for an order of examination, which allows you to question the debtor about all their assets and where they are located. 

6) Easy Assets to Find

The low-hanging fruit are bank accounts and wages from employers. These can be found by hiring a professional asset location company such as Debtor Inspector. 

They are experts at finding bank accounts and verifying employment, which gives you the option to garnish verified funds or wages. You also have the option to do rush services and can obtain financial information on your debtor within 3-5 days. 

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7) Hire an Expert

Companies like Debtor Inspector will take on judgments, do all the work, and give you 40-50% of the value when collected. This is the best way to “not get your hands dirty” and saves time. 

8) Judgments Can Be Renewed

Your judgment is usually good for 5-20 years, depending on the state. If you have not collected during this time, renew your judgments and liens before expiring. If you don’t renew, you will likely have to re-file with the court, or the statute of limitations will expire on the original debt. 

9) Be Relentless

Financial situations change in people’s lives. Your debtor may get a better job or inherit money. Keeping tabs on your debtor should be relatively easy to do these days with the internet and social media channels.

Once you are paid, make sure you file a satisfaction of judgment with the court. It’s an easy form to fill out.

10) Consider Proposing a Settlement

If you cannot locate any assets to attach and the debtor refuses to pay the full amount, consider offering a settlement for less than the total amount owed. Remember, proposing less than the total amount owed is better than collecting ZERO.

Frequently Asked Questions

What Are the Methods of Executing a Judgement?

After a court issues a judgment in favor of a creditor, various methods for collecting the debt are available, such as wage garnishment, bank account levies, and property liens. It’s important to work with an experienced attorney or debt collection agency familiar with these methods for successful collection from elusive debtors. We also have a comprehensive guide outlining how attorneys can use skip tracing to collect judgments. https://debtorinspector.com/skip-tracing-attorneys-collections/

Can a Judgment Be Appealed?

When a court makes a decision, the losing party may wonder if they can appeal. An appeal is a request for a higher court to review the lower court’s decision. To succeed, the appellant typically needs to show an error that affected the outcome.

Not all judgments can be appealed, and there are time limits for filing appeals. It’s complex and often requires legal assistance. A successful appeal could impact debt collection efforts against the judgment debtor. Understanding appeals and their potential implications can help navigate the legal process effectively.

How Can I Find Someone Who Is Trying to Avoid Paying a Judgment?

When trying to locate a judgment debtor evading payment, consider conducting an asset search, using skip tracing services, and monitoring their social media activity. Enlisting the help of a professional investigator or attorney specializing in debt collection can also be beneficial.

What Types of Assets Can Be Seized to Satisfy a Judgment?

When enforcing a judgment by seizing assets, it’s important to target real estate, vehicles, personal property, bank accounts, and financial assets. Legal counsel or debt collection agencies can help navigate the complex legal processes.

What Is the Difference Between a Judgement and a Collection?

Understanding the difference between a judgment and debt collection is crucial. A judgment is a court’s decision in a legal dispute, while debt collection involves enforcing that judgment. Effectively collecting judgments requires expertise and strategic planning.

Conclusion: Methods To Turn Judgments into Payments

It’s crucial to understand and implement the best methods for collecting legal judgments. This guide details strategies such as lien rights, asset discovery, and expert assistance, which can greatly improve your chances of successful judgment collection. Persistence and adaptability are key, so it’s important to remain relentless and consider proposing settlements when necessary.

 

For those still facing difficulties, skip tracing can be a valuable tool. This technique helps locate individuals who are avoiding payment, leaving no stone unturned. By combining the best judgment collection methods with skip tracing, you can maximize your efforts and achieve the financial outcomes you deserve.