Last month we published a blog post discussing why so many companies fail to collect on their judgments. This month, we want to expand on the topic by looking at it from the debtor’s perspective. Suffice it to say that debtors know creditor weaknesses. With the help of their attorneys, they also know what the law allows. They use their knowledge to avoid paying for as long as possible.
Here at Judgment Collectors, we know the law as well. We also know how debtors go about avoiding paying judgments. We know as much about them as they know about you, and probably more. That’s what makes us so good at debt collection. If you have never used a professional judgment collector before, now might be the time to contact us.
Playing the Waiting Game
Some 80% of all judgments in the U.S. go forever unpaid for the simple fact that debtors are willing to play the waiting game. They know that most states limit the amount of time collectors have to make good on judgments. It is typical for judgments to be limited to 7 to 10 years. After that, creditors have to go back to court and start over again.
We discussed in our previous post how some creditors are not aggressive enough. They do not want to seem too mean or nasty. That’s understandable but failing to be aggressive could lead to chasing a creditor around for years. Chase too long and you can end up losing the waiting game.
Debtors Hide Assets
The interesting thing about collecting judgments is that courts don’t do it. They enter judgments against debtors, but they leave enforcement up to creditors and their representatives. It is understood that debtors will cooperate with creditors to get things settled. But far too often, it doesn’t work out that way. Debtors have a habit of hiding their assets.
Imagine a debtor unable or unwilling to pay a bill. He knows it is eventually going to go to collection and then to court for judgment. In the meantime, he has plenty of opportunity to hide assets – like real estate. Transferring property to a relative is one option.
Judgment Collectors is not fooled by those sorts of tactics. We know how to track down assets in ways that general debt collectors do not. And when we find assets, we have the necessary leverage to encourage debtors to pay up.
Cooperating Isn’t Necessary
Finally, judgments go unpaid because debtors understand that their cooperation isn’t necessary. Remember, courts do not enforce judgments. Therefore, collecting relies heavily on debtor cooperation. A debtor who knows how to withhold his cooperation effectively can thwart efforts to collect indefinitely.
Hiding assets is just one way to withhold cooperation. Debtors can do other things too, including not being truthful about employment. They can frequently change addresses and not give out phone numbers. Some debtors go so far as to leave the state in which they owe the debt.
The point of all this is to say that we are not surprised by any efforts to avoid collection. We are a specialized debt collection firm that concentrates exclusively on judgments. And because judgments are all we do we are particularly good at finding debtors and encouraging them to pay.
The Judgment Collectors staff combines industry experience with proprietary tools to get results. Where general collection agencies and attorneys fail, we succeed.
Some 80% of all judgments may go forever unpaid in the U.S., but yours does not have to be among them. Contact Judgment Collectors today and let us get busy working on your case.
Published May 17, 2021