When debt collectors are seeking to collect on a civil judgment, anything and everything of value can be helpful in ensuring that they maximize their recovery. There are many solutions that can play critical roles in helping to secure the judgment amount owed. In the following blog post, we’ll be discussing several, and yes, we’ve had experience putting them all to good use.
Real Estate Holdings
Real estate holdings can be important not only for their value but also because they can provide a steady stream of income. In order to collect on a civil judgment, it is often necessary to go through the process of seizing and selling the property. This can be time-consuming and costly, so it is important for debt collectors to identify all real estate holdings owned by the debtor.
Of course, if you are entitled to certain property, you’ll need to decide whether selling or renting is the best move. Home sales have been topsy-turvy in the last few years, so do a cost-benefit analysis before unloading anything at under-market values.
Wages and Salaries
Wage and salary garnishments, bank account garnishments, and accounts receivables are all sources of income that can be seized to pay off the judgment. Garnishments can be an effective way to collect on a judgment.
But it is important to make sure that all applicable state and federal laws are followed. Some states have limitations on the amount of money that can be garnished from a debtor’s wages.
Collectors may also target bank accounts in an effort to collect on a judgment. This can be done by freezing the account or by seizing funds from the account. However, it is important to note that certain types of accounts, such as social security or disability benefits, may be exempt from seizure.
To seize bank accounts, debt collectors must first obtain a court order authorizing them to do so. Once they have it, they can contact the financial institution where the account is held and request that it freeze or close the account.
If the debtor is a business, accounts receivable may also be targeted. This can be an effective way to collect on a judgment, as it ensures that the debtor does not have access to the funds.
Insurance proceeds from notes and contracts can be another important source of revenue for debt collectors. When a debtor fails to make good on a contract, the insurance company may be willing to pay out the proceeds to the creditor. It is important for debt collectors to know who holds the insurance policy and how to contact them.
Nonexempt property and assets such as clothing or household items may not have much value individually, but when taken together they can add up quickly. Debt collectors should take inventory of all nonexempt assets owned by the debtor so that they can seek seizure orders for these items if necessary.
Cars, trucks, motor homes, motorcycles, boats, and other personal property can be seized to pay off a judgment. It is important to have a clear understanding of what types of property are available for seizure in their jurisdiction. You should also have an idea of what the property is worth so that you can negotiate with the debtor for a settlement amount that is less than the total judgment amount owed.
Business equipment, furniture, computers, and other similar items can also be seized by debt collectors. These items may not have as much value as cars or real estate, but they can still provide significant revenue for the collector. It is important for collectors to understand what type of equipment or furniture is owned by the debtor and how much it is worth.
Intellectual property such as trademarks or patents can also be valuable assets for debt collectors. These assets may not have any physical form, but they can still be used to generate income for the creditor. It is important for debt collectors to identify any intellectual property owned by the debtor and understand its value.
At Southwest Recovery Services, we understand that the decision to use wage garnishment, bank account seizure or other methods of asset seizure is not always an easy one. But we also understand that in many cases, it is the best way to collect on a judgment.
Our team of experienced professionals can help you navigate the process and even do it for you. Contact us today to discuss your situation and learn of all the ways we can help.