If you're a creditor seeking to collect on a court-issued judgment, there are a variety of options at your disposal. Some of these options are wage garnishment, bank levies, property liens, and property seizure.
The process of collecting on a judgment, however, can sometimes be as challenging as winning the judgment itself. Understanding your options and rights can put you in a better position to collect money a debtor owes to your company.
Keep reading as we outline the avenues available for collecting on a judgment and how professional legal assistance can help you assert your rights.
Understanding Creditor Rights
When a debtor defaults on a loan you issued to them, you can initiate legal action to collect on the remaining debt. As a creditor, upon obtaining a judgment from a court confirming that a debtor owes you money, you are granted specific rights to collect the debt. This legal validation opens several avenues to pursue the owed amount.
Here are a few ways creditors can collect debt:
- Wage Garnishment: Wage garnishment is a common form of debt collection that involves a percentage of the debtor's wages being withheld by their employer and directed to you until the debt is fully paid.
- Bank Account Levies: If you're aware of where the debtor banks, you can obtain a levy that freezes their account, allowing you to withdraw funds to cover the amount they owe.
- Property Liens: A judicial lien can be placed on a debtor's property, such as real estate, which must be settled before they can sell or refinance the property.
- Seizing Property: In some cases, you might have the right to seize assets or property, auction them off, and collect the proceeds to offset the debt.
No single approach fits every situation, and it's often beneficial to use a combination of methods to maximize your chances of recovering the owed amount. Consult with a legal professional to understand how you can succeed in collecting a debt owed to your company.
Collecting on Your Judgment
Collecting on a judgment relies heavily on the information you have about the debtor's assets. The initial phase often involves locating and identifying debtor assets that can be targeted. Sometimes, this might necessitate additional court actions to require the debtor to disclose assets. Once a debtor’s assets are ascertained, the appropriate legal mechanisms—garnishments, levies, or liens—can occur to reclaim payment on the owed debt.
When to Seek Professional Help
The process of collecting a judgment can be complex, legally intricate, and often frustrating when faced with a stubborn debtor. The guidance of a legal professional with experience in judgment collection can be invaluable. They can offer services ranging from legal advice to handling the entire debt collection process on your behalf.
Purdy & Bailey, LLP specializes in assisting creditors like you. If a debtor owes your company money and you're struggling to collect, professional help can make all the difference in navigating the post-judgment landscape.
Contact us today to request a consultation and learn more about our services.