Every now and again we get requests from companies looking for help to recover standard debts. We cannot help them. We are a specialized collection agency focusing exclusively on money judgments. So what’s the difference?
Standard and judgment collection agencies differ in a lot of the details of what they do. But all those details can be broken down into three categories: focus, legal capabilities, and expertise. Let’s look at them a bit more closely. By the time you get to the end of this post, you should be comfortable with the two types of collection agencies.
1. Collection Focus
Standard collection agencies focus on delinquent debts that have not yet been escalated to civil litigation. Think of things like unpaid utility bills and back rent. The debt could be for as little as a few hundred dollars or as much as thousands of dollars. Size really isn’t the issue. It’s whether a debt has been taken to civil court.
A judgment collection agency only pursues debts for which a judgment has already been entered. What is a judgment? It is a court order that does two things:
- It recognizes the legitimacy of the debt in question; and
- Compels the debtor to pay what is owed, plus interest and penalties.
To obtain a judgment against another party, you need to take that party to civil court and win. Smaller debts go to small claims court, while larger debts are taken to a higher court.
2. Legal Capabilities
Next up, standard and judgment collection agencies differ in terms of their legal capabilities. A standard collection agency is legally entitled to collect the debts on which it is working. In some cases, they actually purchase debts from creditors. In other cases, they work on consignment.
Regardless, standard collection agencies are not allowed to enforce debts on their own. The best they can do is use traditional collection methods like sending letters, making phone calls, and sending email messages.
Because money judgments are as much court orders as they are legitimately recognized debts, they become legally enforceable in a way that standard debts are not. That way pertains to the means of enforcement. Judgment creditors and their representatives can use the following tools to collect:
- Wage and bank account garnishment.
- Judgment and property liens.
- Writs of execution to seize and sell property.
The most compelling option on the list is obtaining a writ of execution. That is something a creditor or standard collection agency cannot do without first obtaining a judgment.
3. Collection Expertise
Both types of collection agencies employ agents with specific skill sets. Standard collection agents need to be experts in administration. They need to know all state and federal regulations that apply to their businesses. Compared to what a specialized agent needs to know, a standard agent’s body of knowledge is minimal.
As for the specialized collection agency, it is staffed by agents who are experts in multiple areas. Agents need to know and understand all applicable federal and state laws. They must understand the administrative side of judgment collection. But they also must be experts in:
- Conducting property searches
- Following court procedures
- Utilizing skip tracing
- Figuring out the best way to contact the debtor
Collecting a money judgment from an uncooperative debtor can be quite difficult. That’s why we recommend a specialized collection agency over its standard counterpart – or even attempting to collect in-house. If you want an agency with a laser-like focus, an understanding of court procedures, and bona fide judgment expertise, you want Judgment Collectors. We can help you collect.