Wouldn’t it be fantastic if every judgment debtor immediately paid their bill in full? Absolutely. Does it ever happen? Only on rare occasions. Almost every monetary award must go through a long and belabored collection process. The process is time consuming and often frustrating to judgment creditors.
If you are a judgment creditor and you find yourself in such a position, understand that you are not alone. Also understand that there may be valid reasons the debtor is not paying. Then again, his reasons may not be valid at all. You don’t really know unless you investigate what is going on.
Here are the top five reasons judgment debtors do not pay right away:
1. They Have Limited Income
Perhaps the most common reason for not paying is limited income. You’re more likely to run into this scenario if you are trying to collect from an individual rather than a business. And because so many monetary judgments are associated with routine debt collection – think unpaid utility bills, car payments, etc. – a lack of sufficient income is pretty common.
Limited income might prevent a debtor from working out a payment plan. Unfortunately, limited income might also take garnishment off the table. If a debtor’s limited income is combined with little to no assets, the debtor could actually be judgment-proof.
2. They Get Bad Advice
Some judgment debtors do not pay right away because they are getting bad advice. Maybe a debtor’s friend is telling him to ignore collection efforts because the judgment is not really enforceable. Perhaps an attorney is advising the debtor to hold out for as long as possible with the hope of filing for bankruptcy down the road.
Truly, the possibilities are endless. Bad advice has a way of rearing its ugly head in the judgment collection arena. A lot of people think they know what is best for a judgment debtor and are not afraid to say so.
3. They Are Hoping for Expiration
Most states attach statutes of limitation to monetary judgments. In simple English, judgments expire after a certain amount of time. Some judgment debtors know this and are content to keep delaying payment hoping to reach expiration.
If a judgment reaches its statute of limitations and is not renewed, that’s the end of it. The expiration date comes, and the creditor is no longer allowed to pursue collection. Under the law, the judgment is considered unenforceable. On the other hand, a creditor could renew the judgment to continue collection efforts.
4. They Want to Test the Waters
Yet another reason for not paying right away is testing the waters. In other words, the debtor wants to see how serious the creditor is about collection. A creditor whose collection efforts are lackluster may be perceived as no threat to the debtor, thereby encouraging the debtor to not pay. But more aggressive collection efforts would send the opposite message.
5. They Are Just Being Belligerent
Finally, it is fair to say that some debtors don’t pay because they are just being belligerent. Maybe they think the court erred in ruling against them. Perhaps they are convinced they don’t really owe the money. Maybe some even think it’s all a game. Regardless, belligerent debtors can make life exceedingly difficult for creditors.
Regardless of the reasons, failing to pay right away doesn’t automatically mean never paying it all. This is one of the reasons we recommend working with a judgment collection agency. Circumstances may change in the future. And if they do, that outstanding judgment may be fully collectible by someone who knows how to do it.