We get a lot of interesting questions from clients who are new to the whole money judgment thing. A common question is, “how long will this take?” It’s a question that doesn’t have an easy answer. We wish it did because an easy answer would make our life so much easier.
The amount of time it takes to get paid varies from one case to the next. It’s not possible to develop a solid timeline because there are so many variables in play. However, one thing is for sure: most money judgments are not paid immediately. Full payment can take weeks, months, or even years.
Who Is Handling the Judgment Collection?
Among the many variables is the party responsible for collection. Remember that money judgments are the result of civil litigation. A money judgment is essentially an award ordered by the court to settle a dispute between parties. The winning party, also known as the judgment creditor, is responsible for collection.
That said, collection could be handled by:
- An Individual – A sole proprietor could attempt to collect an outstanding judgment on his own. Likewise for a landlord or even a property owner locked in a dispute with his neighbor. Individuals are the least likely to succeed at collection.
- A Company – Companies find themselves in the position of judgment creditor after winning debt collection cases. Companies may assign collection efforts to the bookkeeping or accounting departments.
- An Attorney – Both individuals and companies can leave collection efforts to their attorneys. The same attorneys who represented them in court are also tasked with collecting the resulting judgments.
- A Collection Agency – Individuals and companies could choose to bring in a collection agency rather than leave collection to an attorney. Some collection agencies, like Judgment Collectors, specialize in money judgments. Others do not.
How does any of this impact the amount of time it takes to collect? Individual consumers, sole proprietors, and small business owners have a limited amount of time to invest in collection. Here at Judgment Collectors, collecting is a full-time occupation. We can work quickly because collection is all we do.
How Cooperative Is the Debtor?
Another big factor is the level of cooperation offered by the debtor. Cooperative debtors are easier to collect from. They are more likely to enter payment agreements. They are more willing to consider settling. They don’t try to hide assets or avoid revealing critical information.
On the other hand, uncooperative debtors have been known to go to great lengths to avoid paying. One debtor might fail to reveal information about non-exempt assets. Another might claim to be unemployed when he is not. Still another might actually transfer assets to family members or even pack up and move. The more uncooperative a debtor is, the longer it takes to get paid.
What Kind of Assets Does the Debtor Have?
Assets play a huge role in judgment collection. They equal leverage at the bare minimum. In some cases, however, they become the actual means of payment. So if a judgment debtor is lacking valuable non-exempt assets, a creditor has less to work with. It could take longer to get paid. The opposite is also true. A creditor could get paid faster if there is a good selection of valuable assets to look at.
There are a lot of variables to consider in the judgment collection arena. The three provided in this post only scratched the surface. The point is clear: the amount of time it takes to collect varies from one case to the next. But that does not deter the Judgment Collectors team.