Anyone who says that collecting judgments in Ohio is easy has either never tried before or has been extremely lucky. Judgment collection is rarely easy regardless of the state in which it is being attempted. But in Ohio, certain rules and procedures only add to the difficulty. For example, what is a creditor to do when a judgment debtor has no assets that can be leveraged for collection efforts?
Typical Assets Leveraged for Collection
The fairy tale ending to a civil case resulting in a monetary award involves the judgment debtor writing a check as soon as the case has been decided. That is such a rare circumstance it is not even worth entertaining further. The next best option is for the creditor and debtor to agree on some sort of payment plan.
If the payment plan option doesn’t work, creditors have no other choice but to begin looking at debtor assets. Creditors are interested in:
- Wages and bank accounts.
- Real estate assets.
- Collectibles, luxury items, etc.
The idea behind looking at debtor assets is to use them as leverage to collect. But what if a judgment debtor doesn’t have any assets worth mentioning? Worse yet, what if his lack of assets is combined with insufficient wages that could otherwise be garnished? In such a case, the debtor would be considered judgment-proof.
Not an Ideal Situation
Winning a money judgment against a judgment-proof debtor is certainly not an ideal situation. We know. As experts in judgment collection in Ohio, we have seen our fair share of judgment-proof scenarios. But even though the situation is not ideal, it is not necessarily hopeless either.
The statute of limitations on an Ohio judgment is 15 years. That means an organization has a total of 15 years to collect before either having to forget the judgment or petition for renewal. However, Ohio judgments also go dormant after 5 years if no collection efforts are made. This is the big issue when dealing with judgment-proof debtors.
Is there really a point to attempting collection efforts against a debtor who is judgment-proof? Perhaps not. A creditor could invest a ton of time and money in collection efforts that stand no chance of succeeding. Allowing the judgment to go dormant might be the better option.
Dormant Judgments Can Be Revived
As previously stated, an Ohio judgment goes dormant after 5 years of collection inactivity. This is for judgments not involving the state (think state tax liens). The state has 10 years before inactivity results in dormancy.
The good news is that Ohio regulations allow judgment debtors to revive a dormant judgment within ten years of it going dormant. So even if you were trying to collect on a judgment that had gone dormant 3 years ago, you could still petition the court to revive it.
How Such a Strategy Would Help
While it is best to avoid dormancy whenever possible, it may be the only option when dealing with a judgment-proof debtor. During the initial five years, and then for some years afterward, the creditor can continue to monitor the debtor’s financial situation. Should a means of paying the debt emerge within the 10-year revival period, the creditor now has a way in.It is really impossible for us to do this topic justice in such a short blog post. Fortunately, there are online resources you can check out for more information. In the meantime, why not consider calling in Judgment Collectors to help with your Ohio judgment? Let us know what you are currently working on. Then we can explain how we might be able to help. Contact us today to see how we can collect your judgment for you.