A hallmark of our business model is our consignment policy. Simply put, we do not buy judgments from clients. We work on consignment. We only get paid if and when we collect. We also bear all the costs along the way. Our clients appreciate this for the simple fact that collecting unpaid judgments can be expensive.
Turn your unpaid judgments over to Judgment Collectors and you immediately stop spending money on collection. Your financial obligation ceases. We cover all the costs of what we do, including legal expenses. That’s good for you because it saves you money. It is good for us because it motivates us to succeed.
So why does judgment collection get so expensive? There are a number of reasons, beginning with the fact that legal actions are required throughout the process. Each one of those actions costs money in terms of legal fees, court fees, etc.
The unfortunate fact of the matter is that debtors who have predetermined their unwillingness to pay force us to utilize multiple legal avenues to change that. But working the legal system isn’t free. The more determined a debtor is to avoid paying, the more legal action is required. As a result, the fees and charges associated with said legal action start adding up.
In most of the cases we work on, debtors have deliberately attempted to shield themselves from having to pay by not responding to interrogatories, hiding assets, reporting false employment information, etc. A lot of debtors force us to have to track them and their assets down.
Fortunately, we have access to skip tracing and other tools for doing what we need to do. But these tools cost money to obtain and use. They are worth the investment for us because collecting unpaid judgments is what we do. But for our clients, the same investment could be cost prohibitive.
Perhaps the biggest problem is that collecting unpaid judgments takes time. And as any business owner knows, time is money. It is money in the sense that a company needs to pay someone for every hour they work on tracking down debtors and getting them to pay.
A typical accounting department has enough to worry about without having to take on judgment collection. When judgments are thrown in their lap, they need to find time to do the extra work. That could mean expensive overtime.
There also those cases in which companies need to bring on additional accounting staff to handle the work that existing staff cannot get to because of the judgment collection issue. It all adds up to spending more money on accounting than the company would otherwise spend.
Our judgment collection service is vital to your bottom line in that it saves your company money and lets you get back to work. Not only are you spending less to collect, but you are also earning more because you are able to focus on what your company does best. It is a win-win on both counts.
If your company is currently working on collecting unpaid judgments, how long have you been at it? Are you prepared for each judgment to take years? We are willing to bet that at least some of your debtors are willing to play the game for that long.
Your expenses will continue adding up as long as you try to collect in-house. But you can turn those expenses over to us along with the judgments themselves. We think that this is a better option.
Published November 15, 2022