The debt collection industry is like any other in the sense that it has its own vocabulary. Take judgment collection. The two main players in any judgment collection scenario are the judgment creditor and judgment debtor. Don’t worry if you are unfamiliar with these two players. You are about to learn who they are and what they do.
Bear in mind that judgment creditors and debtors are only in play when talking about civil court cases resulting in monetary awards. These types of cases are referred to in our industry as monetary judgements. Yet it is entirely possible to have a civil case for which there is no monetary award. Judgment creditors and debtors are not part of such cases.
The Judgment Creditor
There are no guilty or innocent verdicts in civil cases. Instead, courts determined liability. A civil case resulting in a monetary judgment creates the two players previously mentioned. The first is the judgment creditor. This is the party to whom the award is to be paid. In simple terms, the judgment creditor is the party that wins the case.
The winner becomes a creditor for the simple fact that money is now owed to that person or organization. In addition, the judgment itself is considered a legal asset. The judgment creditor is the owner of that asset and remains so unless the decision is made to sell it to a third-party.
Judgment creditors can attempt to collect the money they are owed on their own. They can also hire an attorney to collect or turn the debt over to a collection agency. Judgment Collectors is an agency that operates in Utah and ten other states.
The Judgment Debtor
The judgment debtor is the party on the other end of the equation. This is the losing party; the party compelled by the court’s decision to pay the monetary award. A judgment debtor could be a single person, a company, or a nonprofit organization. Sometimes, judgment debtors are even government agencies or institutions.
This losing party becomes a debtor by virtue of the fact that he now owes a financial debt to the creditor. The debt is just as legal and binding as any debt incurred outside the courtroom. In most cases, the debt includes the judgment creditor’s attorney fees and court costs.
Judgment Collection: Other Players in the Game
While the judgment creditor and debtor are the two main players in judgment collection, there are other players as well. For instance, the court that rendered the judgment may be involved in future proceedings depending on how collection efforts go. The court may be petitioned to enforce interrogatories by compelling the debtor to appear in court. Likewise, the creditor’s attorney might petition the court for a writ of execution.
The two party’s attorneys are also players in the game. Attorneys can offer to represent clients in court and go no further. They can also continue to represent their clients throughout the collection process.
Judgment collection agencies represent yet another player. Some agencies buy judgments as assets while others work on consignment. Here at Judgment Collectors, we utilize the consignment model. We cover all our own costs and don’t get paid unless we collect.
Winning and collecting a judgment is not as straightforward as many people believe. There are a lot of moving parts. There are a lot of players as well. If you are looking at a civil case you expect to win, we encourage you to get to know the players as soon as you can. It can only help you in the long run.