Knowing Why a Debtor Won’t Pay Could Make a Difference

It would be nice for judgment creditors if every court case ended with prompt payment of any monetary award granted by the court. But that’s not how things generally work. Oftentimes, it takes a while to get paid. Judgment debtors have their reasons for either slow-walking payment or not paying at all.

Few reasons to justify accruing debt and not paying the bill. But from a judgment collection standpoint, it helps to know why a debtor is unable or unwilling to pay. Some reasons could make a significant difference in terms of how collection efforts move forward.

For the purposes of this post, there are two types of judgment debtors: those willing to pay but without sufficient resources and those unwilling to pay no matter what. Within the two categories are a virtually endless number of reasons motivating debtors to do what they do. Let us take a look at some of their reasons for not paying.

1. Insufficient Income

Sometimes it is a matter of insufficient income. A judgment debtor barely makes enough to pay for necessities like food, clothing, and shelter. He would actually pay up if he could afford to do so. But since he can’t, entering into a payment plan isn’t even realistic.

This sort of judgment debtor can be rather difficult to collect from. At the current moment, he may be legitimately judgment-proof – which is to say he has insufficient income and no valuable assets worth pursuing. But things could change. A few years from now, his circumstances could be radically different.

2. A Disagreement with the Court

It is not unheard of for judgment debtors to completely disagree with the court’s decision against them. Even though they fail on appeal, they still believe they do not owe the debt in question. They will do everything they can to avoid paying just on the principle of the thing.

These sorts of debtors might be easier to collect from as long as they have a decent income and a few assets. Still, a judgment creditor should not expect an easy ride with the debtor who disagrees. A person who sincerely believes the court got it wrong might be willing to put up a fight.

3. A Bleak Future Outlook

There are those debtors who do not pay because of a bleak future outlook. Not only are they judgment-proof at the current time, but they don’t hold out much hope for the future due to things like health problems or unavoidable life changes.

These types of cases can be tough, especially when the debt in question is health-related. Imagine someone who has accrued a significant amount of medical debt. Due to poor health, the debt only continues to grow. The person has no viable means of paying. It is a shame, but it happens.

4. Avoidance Is a Game

The hardest type of judgment debtor to collect from is arguably the person who treats avoidance like a game. For this sort of person, there is a good sport in hiding assets and changing addresses. Staying one step ahead of debt collectors is adventurous and exciting.

Though it is hard to believe, such debtors are out there. We have pursued them on behalf of clients in Utah and ten other states. They certainly make collections harder, but by no means impossible!

Regardless of why a judgment debtor cannot or will not pay, giving up may not be an option. If that is the case for you, we encourage you to contact Judgment Collectors at your earliest convenience. We might be able to help you collect that outstanding judgment.