Judgment Collectors is a collection agency specializing in and helping clients collect judgments in a dozen states, including Utah, Arizona, Texas, and Idaho. We cover a lot of ground and work with a lot of clients. We also get many questions about money judgments and collection procedures.
Do you have a judgment you are trying to collect? And if so, do you have questions? You are not alone. We have put together a selection of questions we hear all the time. We have divided them into categories to make them a bit easier to follow. Perhaps you’ve asked some of these same questions.
State Rules and Procedures
Although there are exceptions to the rule, most civil court cases producing a money judgment are handled in county courts. The rules and procedures in such cases are covered by state law.
What are the property exemption laws in my state?
The states allow for both exempt and nonexempt property within the judgment collection realm. For example, most states protect a debtor’s entire home or a value of the property, also known as the homestead exemption.
Are there statutes of limitation on collections?
As a general rule, yes. Most states have a statute of limitations of 7-10 years. Some states also allow judgment renewal, which is to say that a judgment can extend beyond a statute of limitations if the creditor files to renew it.
Are there any collection restrictions?
State laws tend to restrict how judgment creditors and collection agencies can go about recovering payment. The restrictions vary from one state to the next.
Asset Discovery
Assets are particularly important to what we do as a judgment collection agency. They help us better understand our options for encouraging payment. But in order to utilize assets as leverage, we need to figure out what they are.
What is post-judgment discovery?
Post-judgment discovery is a process whereby judgment creditors gather information on debtor assets and finances. There are different ways to do it, as defined by state law.
How does a collection agency discover assets?
One of the benefits of working with a judgment collection agency is the expertise they offer in finding hidden assets. Asset discovery is one of the tools of our trade. We cannot give away how we do it for obvious reasons. Needless to say, we do have options that creditors either don’t know about or simply fail to utilize.
Enforcement Mechanisms
Enforcing a judgment is all about putting into place what the court has ordered. When it is a money judgment, enforcement pretty much equals collection. State laws give judgment creditors a variety of enforcement mechanisms.
Can wage garnishment be used to enforce a judgment?
Some states allow wage garnishment as an enforcement mechanism. Others do not. Likewise for garnishing bank accounts. Where garnishment is allowed, it can be an effective tool.
Can property liens be used for enforcement?
Property liens can be very convincing to judgment debtors. A property lien establishes a legal interest in a piece of nonexempt property, a legal interest that prevents the owner of the property from disposing of it without settling his debt.
Can property be seized for enforcement?
In most states, nonexempt property can be seized and sold to pay a money judgment. The rules surrounding seizure differ among the states, so it is important the judgment creditors know how it works.
There are plenty of additional questions we simply don’t have space to deal with. If you have questions or need help with your judgment, consider contacting Judgment Collectors. We will do what we can to help.