Arizona is one of the many states we operate in. So many of our Grand Canyon State clients come to us hoping to avoid the mistakes common to in-house collections. Some of the most critical mistakes can lead to a long and drawn-out collection process that ultimately results in little to nothing being collected.
If you have an outstanding money judgment in Arizona and are looking for help to collect it, we invite you to contact Judgment Collectors. Let us take a look to see what we can do. In the meantime, here are three big mistakes Arizona judgment creditors cannot afford to make:
1. Failing to Send Proper Notices
Judgment creditors have certain responsibilities when it comes to informing debtors of their collection efforts. Among them is sending proper notices. For example, imagine an Arizona creditor who works out a voluntary payment plan approved by the court. The debtor agrees to that plan.
Sending a notice to the debtor in the event of a missed payment would be appropriate. Informing the debtor of the amount past due, along with any further instructions could help him get back on track. And if not, sending notices establishes a paper trail just in case further legal action is necessary.
Even before a case ever goes to trial, written notices serve the same purpose. They established the creditor’s attempt to resolve things without having to go to court. Only when those efforts fail is the creditor compelled to move forward.
2. Failing to Research Debtor Assets
Debtor assets are one of the most important collection tools creditors have at their disposal. They are the proverbial oil that lubricates the collection engine. So it’s a mistake for judgment creditors to move forward with collection efforts and not research debtor assets and income.
A debtor could and should voluntarily offer income and asset information. But if such information is not forthcoming, creditors have legal tools they can leverage to compel disclosure. Above and beyond those tools are asset searches using a combination of public and private data sources.
We could offer many examples explaining why researching debtor assets is so important. Here’s just one: we once worked on a case involving a debtor who claimed not to have any assets of substantial value. We ran a typical property record search and located a piece of real estate the debtor never told us about. Once he was aware that we had found the property, he was more interested in settling up with the creditor.
3. Failing to Track the Judgment
Tracking a judgment is the process of monitoring and managing enforcement. It continues for as long as the creditor pursues collection efforts. It is a mistake for Arizona judgment creditors to ignore tracking because doing so leads to uninformed decisions, assumptions, and unfruitful collection efforts.
Successful judgment tracking includes:
- Monitoring deadlines associated with any court actions
- Keeping detailed records of judgment details
- Monitoring the progress of any additional legal remedies
- Investigating the debtor’s income and assets
- Monitoring the debtor’s whereabouts (in case he skips town)
- Following up on collection strategies, like garnishment and property liens
- Monitoring any signals that could indicate avoidance tactics, like bankruptcy
Tracking a judgment keeps creditors abreast of where things stand. And remember, Arizona money judgments come with a statute of limitations. Creditors have only so many years to collect before they must either renew or allow their collection rights to lapse.
If you have an outstanding Arizona money judgment, avoid these mistakes. We might be able to help by taking over your judgment on consignment.