The best piece of advice we can offer anyone just beginning the lengthy process of collecting a money judgment is to be prepared to invest a lot of time. How much time? We cannot say for sure. Every case is different. But we can answer the question with one of our own: how long is too long to continue collection efforts?
In other words, at what point would you decide you have put too much time and effort into collection only to get nothing for it? Would you give up and walk away after 5 years? How about 7 years?
Engaging in collection efforts for 5-7 years might seem unbelievable to someone who has never done it before. But trust us. Taking that long to collect is more common than most people know. The other thing to consider is that judgment creditors are up against statutes of limitation.
Immediate Payment Is Rare
Money judgments are entered as a result of civil litigation. One party sues another, seeking financial compensation for unpaid debts, personal injury, etc. It would be nice if every case ended with the judgment debt making immediate payment. But the truth is that immediate payment is rare. In most cases, the judgment creditor must engage in a collection process – a process that could take weeks, months, or even years.
When collection efforts continue for years, there could be any number of reasons explaining why:
- Limited Resources – Some judgment debtors are legitimately unable to pay. They simply don’t have the resources. These types of debtors are known as being judgment-proof.
- Unwillingness to Pay – Other judgment debtors have the resources but are unwilling to pay. They do whatever they can to avoid making good on their debts.
- Changing Circumstances – Still other debtors genuinely want to pay what they owe but find themselves subject to changing circumstances. Everything from the loss of a job to a serious illness can interrupt payment.
It doesn’t help that some judgment debtors go to extremes to avoid paying. They might transfer their tangible assets into someone else’s name to prevent liens being placed against property. They might move and not provide a forwarding address. They might provide false or incomplete information about employment and income. Some even go so far as to pack up and move away.
The Statute of Limitations Issue
Judgment creditors have a hard enough time collecting from unwilling debtors. Making matters worse is the statute of limitations. It varies from one state to the next, but the average statute of limitations is 7-10 years.
Once the statute of limitations has been reached, the creditor must either let the judgment go or file a motion to have it renewed. Renewing buys the creditor more time to collect. Conversely, letting a judgment go means giving up all legal rights to collect on it.
In Judgment Collection, Time Is Not Your Friend
When it comes to collecting money judgments, time is not your friend. The longer it takes for you to collect, the less likely you are to receive every penny you are owed. You could put years into collection efforts only to get nothing from the debtor. That’s the worst-case scenario, but it does happen.
How can we help? Judgment Collectors is a specialized collection agency that focuses exclusively on money judgments. We are active in Utah, California, Missouri, Michigan, and a handful of additional states. If you are struggling to collect a judgment, we might be able to help you. Our crack team of experts has the knowledge, skill, and experience to move your case to a positive conclusion.