How to collect court judgments |
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agency
These agencies specialize in the collection of overdue accounts.
Collections agencies must abide by federal and state fair collection laws, including
the Fair Debt
Collection Practices Act. They will pursue your judgment in return for a percentage
of the fee once it is collected. Individuals with judgments from small claims
court may find it difficult to get a collections agency interested in collecting
their debt; they frequently work on behalf of companies that have hundreds, if
not thousands, of overdue accounts. Judgment
enforcement agency
These agencies use public records and databases
to ferret out judgment debtor's assets and salaries and take 30 percent to 50
percent of a judgment collected as a fee.
When working with a judgment enforcer, you assign
that judgment to that firm so the enforcer, in effect, owns the
judgment and can legally go after the judgment debtor. Many judgment
enforcement firms will accept smaller judgments in return for a
percentage of the fee, when and if the judgment is collected. The
National Judgment Network, an association of judgment enforcers,
provides a database
of its members online. Members who are certified have passed an
examination.
Accrued interest can increase the amount you are owed
on your judgment.
States vary in terms of the amount of interest that
is legally allowed on judgments. If you have a contract that specifies
that you are entitled to any fees incurred in the collections process,
your attorney, collections agency or judgment enforcement agency
can collect those fees on top of the judgment and interest, enabling
you to receive the full amount you are owed in the event of collection,
says Petrone.
States also vary in terms of the length of time that
judgments can be collected, but in most states you can go back to
the court and have your judgment renewed if it is about to expire.
Collecting a judgment from a person who has moved out of state is
more complicated, but you or your attorney or collections enforcement
agency can, in most cases, get a judgment transferred from one state
to another.
Professionals collecting your judgment have a number
of tools at their disposal to collect payment, including reporting
the judgment debtor to a credit bureaus, making it difficult for
that person to get credit, placing liens on the debtor's property
and keeping tabs on his or her whereabouts, including their employment,
any inheritances or awards they receive.
"You have to be persistent," says Shapiro.
"It's like a chess game -- in many cases, a debtor will eventually
get a job or come into some money and I can collect the judgment.
But it can take a lot of time."
A settlement is easier to collect than a judgment
because the other party has agreed to pay. But there can be delays.
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