It is not unusual for companies trying to collect bad debts to ask why they should take debtors to court rather than just sending the debts to a collection agency. Going to court opens the door to additional collection tools that are otherwise unavailable, assuming that the company wins the case. But here is the thing: those collection tools do not work if you don’t know how to use them.
Think of a carpenter and the many tools he uses to do his job. Some of his tools are highly specialized. They are tools that are essentially useless if the carpenter doesn’t know how to use them correctly. The legal tools available for collecting judgments are the same way. If you do not know how to use those tools, you are going to have a tough time collecting.
Most Judgments Go Uncollected
We have cited in previous blog posts statistics demonstrating that the vast majority of judgments rendered in U.S. courts go forever uncollected. There are a variety of reasons for this, including the fact that judgment creditors do not know how to go about it. Some don’t know all the tools available to them. Others are aware of the tools but don’t know how to use them correctly.
A good case in point is the Writ of Execution. Most states allow judgment creditors to file for such writs when debtors do not voluntarily pay. But there are rules attached to Writs of Execution. For example, consider exempt and nonexempt assets.
Some states do not allow judgment creditors to go after a debtor’s primary residence. Other states do but protect any equity a homeowner has remaining in is property. Still others allow going after a primary residence but protect a certain value of the home under a homestead exemption.
Things Can Get Complicated
Just this one example of a Writ of Execution to seize property demonstrates just how complicated judgment collection can be. It has been said that the easiest part of collecting is winning a judgment. The real hard work doesn’t begin until after the judge’s gavel falls. We cannot argue with that assessment.
What makes collecting judgments difficult is the differences in rules and regulations. Most judgments are regulated at the state level. And with fifty states, there are bound to be differences from one to the next. That is absolutely the case with everything from enforcement to appeal.
We Do the Work
With all of this in mind, collecting a bad debt through civil court might seem too complicated to be worthwhile. We get it. But Judgment Collectors also offers a solution: turn your unpaid judgments over to us. Let us do the work for you. You do not have to spend a dime on collection efforts. You don’t have to invest any of your time in the process. We do all the work, cover our own expenses, and do not charge anything until we successfully collect.
We don’t want to make life easier on judgment debtors by fully explaining everything we do, but trust us when we say that we have access to a full variety of tools and strategies. We put every tool and strategy we have to work on behalf of our clients.
Going to court over an unpaid debt gives a creditor access to collection tools that cannot be utilized any other way. That is why going to court is sometimes better than sending a debt to collection. If you have done so and won a judgment, we might be able to help you collect. Contact us to find out more.