In our business, we work with clients who have taken other parties to court and successfully sued them. Many of our clients originally filed debt collection lawsuits against debtors who failed to pay what they owed. The big question is, why sue? In simple terms, a civil lawsuit takes debt collection to the next level.
By the time a client comes to us for help collecting a judgment, they have already spent considerable time and effort attempting to get paid. In a debt collection scenario, you might have a small business trying to collect on an outstanding account via traditional collection methods. After getting nowhere, the business owner is left with no choice but to sue.
What It Accomplishes
Suing a debtor in civil court requires spending both time and money. If the debt in question is small enough, going to court might not be worthwhile. But if the debt is sizable, there are definite advantages to filing a lawsuit. Here is what a successful lawsuit accomplishes:
- A Court Record – Winning a debt collection lawsuit establishes a court record that acknowledges the existence of the debt and the debtor’s legal obligation to pay it. Having that court record leads right into the next advantage of going to court.
- Additional Collection Methods – Traditional debt collection is somewhat limited in terms of the strategies creditors can employ. Winning a debt collection lawsuit gives a creditor access to collection methods that are otherwise off limits.
In relation to that second point, winning a debt collection lawsuit may open the door to wage and bank account garnishment. Garnishments aren’t allowed under traditional debt collection. They can only be pursued after a creditor has obtained a judgment in his favor.
Collection Has Already Failed
It is generally accepted that a creditor tries traditional collection methods before going to court. Therefore, filing a debt collection lawsuit implies that traditional collection efforts have been tried and failed. What does this mean to the creditor? It likely means that collection is still going to be difficult, even after winning a money judgment.
This isn’t to say that collection will be impossible. Rather, it’s simply to say that the chances of the debtor coming to court ready to pay are not very high. If the debtor has failed to respond positively to traditional collection efforts, he’s not likely to immediately respond positively to a money judgment.
This is why we explain to clients the judgment collection is sometimes a long-term thing. If an individual or small business is going to file a debt collection lawsuit against a debtor, whoever makes the decision must be prepared to dive in for the long haul.
It’s Okay to Ask for Help
We have explained all of this to lay the foundation for the following principle: it’s okay to ask for help. A judgment creditor is not obligated to pursue collection efforts on his own. Judgment creditors can enlist the help of attorneys, traditional collection agencies, or agencies like Judgment Collectors – agencies that specialize in judgment collection.
We work on judgment cases in nearly a dozen states. We have a team of knowledgeable, skilled, and persistent professionals who do their best on behalf of each and every client.
If you have won a debt collection lawsuit and are struggling to collect, perhaps we can help. Tell us what you are working on, and we will let you know if there’s anything we can do. Should you decide to turn your case over to us, you can rest assured that we don’t get paid unless we collect.