You have filed a civil lawsuit against someone who owes you money. Civil litigation appears to be the best way to compel the debtor to pay. Fair enough. But should you win, you will then have to figure out how to collect. Rest assured that you will face roadblocks and delays.
Your ability to collect is not the same as your legal right to do so. Winning a judgment in a civil lawsuit affords you the legal right to conduct collection efforts that can include everything from wage garnishment to filing property liens. But your ability to collect is contingent upon an assortment of factors.
Judgment Collectors is a Utah collection agency that specializes in judgments. They track down debtors and their assets, then encourage those debtors to pay. They say that there are four things that will affect your ability to collect:
1. Your Knowledge of the System
A judgment is essentially a decision rendered in civil court. It is a legal entity. As such, enforcement and collection are subject to the legal system. Your knowledge of that system will have an impact on your ability to collect. Not knowing the system puts your chances of successful collection in jeopardy. The less you know, the worse it is for you.
2. Your Available Resources
There is always the chance that the debtor will voluntarily pay what he owes immediately after losing the case. But those chances are pretty slim. In all likelihood, the debtor is going to resist making payment. You are going to have to spend time and money trying to convince him otherwise. Therefore, the resources you must put into collection will impact your ability to collect. Limited resources will make your life harder.
3. Your Willingness to Be Stubborn
Most debtors instinctively know that time is on their side. Some are experienced enough to know why that is. Either way, your willingness to be stubborn will affect your ability to collect. If you are the type of person who normally gives up the fight at the first sign of resistance, your chances of collecting are not particularly good. But if you’re willing to dig in your heels and be stubborn about getting paid, you are more likely to succeed.
4. Your Research Capabilities
When judgment debtors do everything that they can to avoid paying, collection success often boils down to the creditor’s ability to research. What needs to be researched? Debtor assets. Debtors quickly realize they are at a disadvantage when they discover that their creditors know about assets they have been trying to hide.
Judgment Collectors cites a good case to prove this point. They were working on a debtor who was very confident in his efforts to evade payment. But once Judgment Collectors discovered he owned a valuable plane hangar in another town, his attitude instantly changed. He did not want to lose that property. Lo and behold, he cooperated thereafter.
5. The Amount of Help You Get
Lastly, it is nearly impossible for judgment creditors to successfully collect without outside help. One way or another, you are going to need professional assistance. It might be by way of your attorney, a private detective, or a collection agency like Judgment Collectors. The amount of help you get will affect the outcome you experience.
Needless to say that collecting unpaid judgments is not as easy as signing a letter and waiting for a check. Judgment collection is time-consuming and sometimes frustrating. It is an exercise in patience. If you don’t have what it takes, you’re better off bringing in a collection agency at the very start.
