Judgment collection agencies have a language all their own. We talk about things in the office that do not make sense to people outside of our industry. Our industry is no different to any other in that regard. But as a judgment creditor, you need at least a basic understanding of the language just to exercise your collection rights.
Below is a selection of terms to know and understand before beginning collection efforts. The more familiar you are with the language, the easier it is to navigate the collection process.
Also remember that Judgment Collectors is here to help. We work on cases in Utah, Michigan, and nine other states. We would be happy to take a look at your current judgment to see if we can help. If we can, and you accept our offer, we will get started right away.
1. Judgment Creditor and Debtor
The first two terms are combined under one heading: judgment creditor and judgment debtor. The judgment part you already know. You have taken someone to court and won a decision in your favor. That decision is the judgment.
The term ‘judgment creditor’ indicates that there is a monetary award included in the judgment. If you win the suit and are now owed money, you are the judgment creditor. The judgment is essentially a legal debt the other party owes you. That other party is the judgment debtor.
2. Interrogatories and Debtor Exams
Interrogatories and debtor exams are two tools for gleaning information from the judgment debtor. The information pertains to income, assets, etc. The difference between the two is how they are conducted.
Interrogatories are normally conducted via written questions the judgment creditor’s attorney submits to the debtor’s attorney. But a debtor exam is conducted in person. The judgment debtor is compelled to appear in court because he must answer appropriate questions.
3. Garnishment
Garnishment is a tool whereby a judgment creditor can leverage wages and bank accounts for payment. When wages are garnished, a certain portion of the debtor’s weekly pay is withheld by the employer and forwarded to the creditor. When a bank account is garnished, the bank is compelled to turn over a certain percentage of the debtor’s deposited funds.
3. Judgment Lien
A judgment lien is a legal document that establishes the creditor’s financial interests in a piece of the debtor’s property. Although details may differ from one state to the next, judgment liens are very similar to construction liens, mortgage liens, and other types of attachments. As long as a judgment lien is attached to property, that property cannot be sold or transferred without paying the debt.
4. Writ of Execution
A writ of execution is a court order allowing the local sheriff to seize a debtor’s nonexempt property, sell said property, and forward the proceeds to the judgment creditor. The mere possibility of being served with a writ of execution can be a compelling reason to pay.
5. Exempt and Nonexempt Property
We wrap up this list with exempt and nonexempt property. Exempt property cannot be leveraged by the creditor for payment. Examples include a primary residence, disability benefits, etc. Likewise, nonexempt property can be confiscated with a writ of execution. Examples include boats, RVs, and vacation homes.The language of judgment collection can be confusing if you are not familiar with it. So do a bit of research if you plan to collect a judgment on your own. Better yet, contact Judgment Collectors and let us take a look. You could make your life a lot easier by letting us collect on your behalf.