My job has me writing frequently about judgment collection in the U.S. In the years I have been doing it, I have learned a lot about what goes into collecting unpaid judgments. I have also learned quite a bit about state rules and regulations. I can tell you this: I would not want a judgment collection agency coming after me for not paying an outstanding judgment.
Judgment collection agencies are collection agencies that specialize in judgments. Understand that judgments vary quite a bit from general debts. Truth be told, a judgment is actually a court decision rendered in a civil case. If the judgment includes a financial award, the judgment is known as a money judgment. Enforcement is all about collecting that award.
Collection Agencies Are Motivated
As for the reasons I would not want a judgment collection agency coming after me, let us just say I would not want to face the discomfort. For starters, collection agencies are highly motivated. Consider how they get paid.
Agency payment is typically based on one of two models:
- Purchase – The first model involves the collection agency purchasing the judgment as an asset. The agency only gets paid by collecting. In addition, they need to collect more than they spend on purchasing and pursuing payment.
- Consignment – The second model is the consignment model. The collection agency provides a service for which it is paid. But it only gets paid if it succeeds in collecting something. Payment is generally a percentage of the total amount collected.
Judgment Collectors is a Utah agency based in Salt Lake City. They explain that either model provides sufficient motivation for collection agencies to succeed. They certainly do not want to put in a ton of time and effort only to not get paid.
They Are Expert Investigators
If collection agency motivation were not enough to get me to pay, their status as expert investigators would. Agencies like Judgment Collectors are extremely good at finding assets. They once found an airplane hangar located in a neighboring county, a hangar the debtor felt he did not have to disclose. He assumed no one would know. It turns out he was wrong.
Collection agencies also tend to be very skilled at skip tracing. Skip tracing is the practice of finding people who do not want to be found by way of property searches, financial records, social media, and other resources. The best of the best can find the proverbial needle in a haystack. I would not want the pressure of constantly looking over my shoulder.
They Are Familiar With All of Their Options
The icing on the cake is the fact that judgment collection agencies are familiar with all the options at their disposal. The most basic is to work out a payment plan both creditor and debtor can feel comfortable about. Unfortunately, payment plans aren’t the norm when collection agencies are involved.
Other options can include the following, based on state law:
- Wage and bank account garnishment.
- Debt garnishment (e.g., accounts receivables).
- Property liens on real estate and personal property.
- Property sale and seizure (writs of execution).
Judgment collection agencies know which options to apply to each situation. Needless to say, they can be very convincing in their efforts to encourage debtors to pay. Why would I want to come up against a skilled collection agency who knows the rules better than me?
Fortunately, I am not facing an unpaid judgment right now. If I ever find myself at the losing end of a civil suit, I will find a way to pay.