Accounts Retrievable Systems - Collection Of Past Due Child Support
In most jurisdictions, a non-custodial parent is obligated to pay child support to the custodial parent when the parents no longer live together. Unfortunately, the parent obligated to pay support does not always pay according the court’s order. There are, however, things that the parent who is owed delinquent child support can do to try and collect the support owed. Contacting the local child support enforcement agency is usually a viable option for collecting delinquent child support. Requesting a wage garnishment or tax return lien from the original court are also good tactics for collecting delinquent child support owed by a non-custodial parent.
Jurisdictions will vary with regard to what services they offer for child support enforcement and collection. Within the United States, most states have child support enforcement offices that are usually affiliated with the local prosecutor’s office. Before contacting a child support enforcement agency, it is a good idea to gather as much information as possible about the person who owes the child support. For example, a current address, employment information, and even what type of vehicle he or she drives may be helpful, if available. Local child support enforcement agencies will generally help in situations where the amount of delinquent child support is over a certain dollar amount threshold.
If a local enforcement agency is unable to help, filing a motion for contempt of court with the original court may be another option. A child support order is an official order of the court, and failure to abide by the order can be considered contempt of court. Most courts will accept hand-written requests in child support cases. The motion should include specifics, such as the amount originally ordered, the amount paid to date, and a total amount of the arrears owed by the defendant.
Once before the court, a parent who is owed delinquent child support may ask the court to order a wage garnishment or tax return lien. A wage garnishment will order the defendant’s employer to hold back a certain amount, or percentage, of his or her paycheck each pay period to be forwarded to the court. The court will then forward the funds to the parent who is owed the support. The court may also order that any future tax refund checks be paid directly to the parent owed the support.
Some jurisdictions will also order the suspension of a parent’s driving privileges when he or she is behind on child support. Although this does not directly secure payment, many defendant’s will quickly catch up the payments in order to get their privileges reinstated. Likewise, incarceration is often an option with a cash bond set for release of the defendant. Money from the bond is then sent to the parent who is owed the delinquent child support.
Debt Collection Agency - Collecting Bad Judgements
Judgment debts are debts that have been reviewed by a judge in a court of law, and found to be valid. The judge rules in favor of the creditor or lender, and orders the debtor to pay the amount specified by the court to the winner of the lawsuit. While a bad debt judgment of this type does further limit the ways by which a debtor can settle his or her debt, there are still a few strategies to deal with judgment debt without having to appear before the judge for a second time.
Often, when a judgment debt is rendered, the judge hearing the case will also specify the different strategies that the creditor can use to collect on the debt. The action often grants the right of the creditor to initiate garnishment of the wages of the debtor, with a percentage of the debtor’s net pay withheld by the employer and forwarded either to the court or directly to the creditor. The maximum percentage of wages that can be withheld for this purpose varies from one jurisdiction to another, with most countries allowing a maximum of twenty-five percent of the net paycheck going to satisfy the garnishment action until the entire debt is retired.
A second possible way to collect on a judgment debt involves the imposition of a lien. In this scenario, the court allows the creditor to obtain a lien against some form of real property that is owned by the debtor, such as a vehicle or a house. Depending on the circumstances surrounding the debt, the judge may require that the property be sold, and the judgment debt retired using the proceeds from the sale.
The imposition of a levy is also a possible means of settling a judgment debt. Here, the judgment creditor has the right to seize cash from different deposit accounts held by the debtor as a means of settling the outstanding debt. The action can be conducted without any prior notice to the debtor, as long as the proper legal documents are presented to the bank or other financial institution where the accounts are established.
It is important to note that once a judgment debt is granted, that does not mean that collection processes will begin immediately. A judgment of this type normally allows the creditor a time frame in which to begin the collection process. If necessary, the creditor can apply for an extension to this time frame. For this reason, a debtor should take action immediately after the judgment is granted, and attempt to work out terms of repayment with the creditor. This move can prevent the need for more legal action, and also allow the debtor to begin rebuilding his or her damaged credit.
Accounts Retrievable Systems - Tips For Debt Collection
People fail to repay their debts in a timely fashion for a number of reasons. For those who make loans or extend credit, being owed can be stressful and it can be problematic. The difficulty associated with bad debt collection can aggravate the matter, but there are some things that creditors can do to increase their chances of payment. These include making personal contact, being professional, and employing a debt collection attorney.
It is always best to put forth all the necessary effort to speak with the debtor. Spouses or household members may listen and they may promise to deliver the message, but they generally cannot or will not make payment commitments. If the debtor is unavailable, it is best to ask for the name of the person who is reached. Then, ask for the best time to reach the debtor. Finally, use the person’s name to confirm the information by saying something such as, “Okay, Martha, since you said that George will be home on Wednesday after five, I will call him then.”
Personal contact can be much more effective for bad debt collection than impersonal measures such as letters or messages. One reason for this is because talking to people provides assurance that the debtor is aware of the concern and the attempts to collect. Messages may be erased or left unchecked for extended periods of time. Letters may get lost or be discarded without being read.
Another reason that personal contact can be effective for bad debt collection is that many people, even those with bad debt, are honest. If they say they will do something, it weighs on their conscience if they do not do it. This means that getting a commitment for payment or partial payment can result in a person feeling obligated to act on those words.
Everyone who has bad debt is not honest, however. Some people may say anything to end the conversation. In some instances, although they owe, people will become defensive and rude. It is best to always maintain a professional attitude. Otherwise, the debtor may become irritated and decide not to pay as a form of retaliation for the lack of courtesy.
Although professionalism should be exercised at all times, it is important to communicate the need for payment. Doing this should involve the debtor being told how non-payment will affect him. Individuals may not feel sympathy for creditors or they may believe that a company has so much money that outstanding balances have no effects. It can be much more motivating, however, if debtors are informed of the personal consequences they will suffer. Collectors should, however, be careful to prevent delivering this information in a way that makes it seem as though they are making threats.
In some instances, creditors cannot successfully handle bad debt collection on their own. When substantial efforts have been made and adequate opportunity to pay has been given, it may be necessary to hire a debt collection attorney. If the amount outstanding is not worth getting an attorney, it may still be effective to tell the debtor that this will be your next step.
Accounts Retrievable Systems - We Collect Judgements
Judgment recovery is the process of identifying and collecting money or property, or attaching the assets of a debtor after a court has entered an order in favor of a creditor. It covers all activities that the creditor can legally pursue between the time the judgment is entered by the court and when the debt is actually received in hand. A creditor can pursue recovery of the debt himself, or can sell or assign the judgment to a third party that is in the business of judgment recovery or collections.
Courts in most jurisdictions enable a creditor to sue a person who owes him money or property to determine the parameters of the debt and to receive an official declaration, or judgment, of the court. A judgment establishes a creditor’s legal right to redress. A court judgment, however, is just an official announcement that the debt is owed. Courts are not concerned with judgment recovery, and are not involved in the process of collecting money or property for the creditor. In fact, many court judgments are never recovered, because the creditor is solely responsible for the identification of assets and the recovery of the debt, and he may or may not be particularly adept at the process.
Most jurisdictions have laws in place that enable a holder of a judgment to pursue certain means to collect from a debtor. These options typically include garnishment of wages, seizure of bank accounts and other liquid assets, the application of liens to property, eviction, repossession, and forced sale of assets. The creditor is not usually required to pursue these contentious avenues under his sole authority, and can often register the judgment with an officer of the law who would then garnish, seize, evict, repossess, attach, or sell assets of the debtor and remit the money directly to the creditor.
Another popular option for judgment recovery is to sell or assign the judgment to a collection agency or debt recovery service. The recovery business will typically pay the creditor a fraction of what is owed under the judgment if it is sold outright. Although the creditor receives less than the full amount owed, he receives it immediately and can close the book on the matter.
A creditor must make sure that the judgment recovery service that he sells or assigns the debt to is reputable. Most jurisdictions have laws that protect the debtor from harassment and unscrupulous debt collection practices. If a creditor hires a recovery service to act as his agent, the creditor is responsible for all potential violations of the law that the business might commit. If he sells the debt outright, he has to ensure that the transfer of ownership of the debt is properly executed to relieve him of future responsibility.
The debt collection process typically begins with the original creditor. Customers who miss a payment may receive a letter in the mail or a phone call reminding them that payment is due. Missed payments resolved at this early stage typically have only minor consequences, such as a small fee or a minor incident on the debtor’s credit report. As time passes or the debtor misses more payments, however, the debt collection process becomes more serious; the creditor may begin calling more often or sending more urgent correspondence through the mail. About six months after the first missed payment, the creditor typically charges off the account.
A charged-off account means that the original creditor is giving up and selling the debt to an outside collection agency. This action typically has a severe impact on the debtor’s credit report. At this point, the collection agency is required by law to notify the debtor that it has taken over the account.
After receiving notification from the collection agency, the debtor typically has 30 days to challenge the authenticity of the debt. If the debtor argues that the debt is not valid, the collection agency is required to verify the account with the original creditor. The agency cannot take further action while the account is in dispute.
Once the 30 days have passed or the account has been validated with the original creditor, the agency begins the debt collection process. Agencies usually contact the debtor by mail or by phone and demand payment. Some collection agencies may be willing to work with the debtor by offering payment plans or settlement amounts, but they have the right to request as much as they want as long as it does not exceed the total amount owed. Collectors are not obligated to accept a settlement offer or payment plan from the debtor.
While debt collectors may employ many negotiation tactics in order to collect money, the Fair Debt Collection Practices Act prohibits certain behaviors. For example, collectors cannot call before 8 am or after 9 pm. They are not allowed to harass debtors, use obscene language, or threaten them with harm. Collectors may not make false claims about the debt or make threats involving legal action that they do not plan to actually take.
If the debtor fails to pay the amount owed or make settlement arrangements, the agency may either sell the account to another company or to a collection attorney. An attorney may take legal action against the debtor, including a judgment or lawsuit. Settlement at this point in the debt collection process often means an appearance in court and additional fines and fees. It also has a severely negative impact on the debtor’s credit report.
Business-to-business debt recovery is the collection of past due accounts receivable owed by one business to another. A third party firm that specializes in collecting delinquent debt from business clients is typically hired to manage the process. Also known as commercial debt collection, the distinguishing feature of this type of recovery is that the debt is between two businesses, rather than a business and an individual customer.
Collection firms that handle business-to-business debt recovery do so on a contingent fee basis. The transaction is usually structured so that the firm takes 15-25% of whatever amount the firm manages to recover. This percentage may seem exorbitant, but the time and effort it takes to recover delinquent debt is substantial. Many businesses prefer to pay an outside agent to handle the process rather than spend valuable time away from core business activities.
Tactics employed by commercial debt collectors vary by jurisdiction. Debt collection is often regulated to protect individual consumers, but some of the same laws apply equally to business debtors. Business-to-business debt recovery will typically include initial communications and follow-ups, offers to settle for less than the amount owed, research to locate assets that can be seized, obtaining a judgment in court, credit bureau reporting, and locating debtors that may have skipped the area to avoid the debt.
Commercial debt collection may seem very similar to consumer debt collection, but there are some important differences. Approach is a factor in business-to-business debt recovery. Depending upon how a business is legally organized, the owners are likely to be shielded from individual responsibility for business debts. This means that debt collection is only effective if the owners have a business that they don’t want to abandon. A business with outstanding debt can simply close its doors or file for bankruptcy, and the owner can go and set up another business doing the same thing and free of old debt.
It can be particularly difficult to recover debts from businesses with nothing to lose, but it can be easier to collect debts from businesses with valuable reputations, roots in the community where it operates, and multiple business relationships. Successful business-to-business debt recovery is predicated on the creditworthiness of the debtor and the debtor’s desire to stay in business. Many businesses rely on credit terms from vendors to manage inventory and cash flow. The commercial debt collector is often not legally prevented from contacting the business’ other vendors, unlike in a business-to-consumer collection, and making it known that the business is not paying its bills. If the business has too many creditors, they can team up and force the business into involuntary reorganization or bankruptcy.
Bad debt recovery is an attempt to secure a partial or full payment of a debt that has been written off due to non-payment. Businesses sometimes conduct this type of activity after taking steps to designate the amount of the debt as uncollectable within the company’s accounting records. For this reason, any amount that is collected as a result of bad debt recovery efforts is often treated as new income.
Just about every business has experienced some amount of bad debt at one time or another. Banks sometimes write off negative balances on overdrawn accounts as a bad debt, if efforts to motivate the customer to make a deposit and restore the balance to zero prove fruitless. Credit card providers sometimes dismiss balances on accounts as being uncollectable, rather than continuing to carry the balances in their receivables. It is not unusual for a company to include a budget item that is known as an allowance for bad debt, using the resources of that account to cover uncollectable debts. While this helps to keep the accounting records accurate, it does not prevent the recording of later transactions in the event that full or partial bad debt recovery takes place.
What many consumers do not realize is that once a debt has been written off as being bad or uncollectable, the business may still take steps to recover at least part of the loss. One approach is to assign the bad debt to a collection agency, allowing that entity to move forward with attempts to contact the debtor and arrange a repayment schedule. This solution often calls for the collection agency to keep a percentage of the collected amount as compensation for its efforts. Once the percentage is deducted, the remainder of the collected amount is forwarded to the original creditor, where it is documented as a recovery from a bad debt line item.
A second approach to bad debt recovery involves selling the uncollected debt to another business. With this solution, the original creditor sells the debt for a small percentage of the total outstanding amount. The buyer assumes the risk of being able to collect the entire amount, while the original creditor can record a partial recovery of the bad debt in its accounting records, effectively closing the matter entirely.
Since companies tend to write off bad debt and remove the balance of the debt from their receivables, the process of bad debt recovery usually calls for any portion of the recovered debt to be treated as income. Most companies do have specific procedures for documenting the source of the income, so that it is possible to differentiate the collected amount from other sources of income, such as earnings from sales or dividends from investments. In some instances, the process involves entering a set of postings that debit the receivables and tying the transaction back to the original write-off. This approach effectively offsets the write-off at least in part, while still documenting the history of the transaction from the date of the write-off all the way to the receipt of the collected revenue associated with the bad debt.
Since 1986, ARS Collection Agency has delivered professional, highly effective results for clients on a worldwide basis. ARS is recognized as a leader in Judgment Collections, Commercial Collections, Consumer Recovery, and is a specialist in collection of Child Support and Spousal Maintenance. Our partnership approach, rapid collection and ability to preserve relationships form the cornerstone of our commitment to excellence.
With three decades of experience both domestically and internationally, ARS Collection Agency serves a broad spectrum of industries.
ARS Collection Agency clients benefit from an array of collection solutions designed to increase cash flow, reduce expenses, improve operational efficiency and maintain positive customer relations. We are proud of our ability to deliver professional, effective and timely results worldwide.
ARS Collection Agency strives to remain a leader in the industry. ARS Collection Agency is comprised of a strong, cohesive and committed team. Our consistent track record for successful outcomes stems from a forward-thinking corporate mix where personal and professional aspirations thrive and progressive ideas flourish. Our team is kept current on all laws and statutes, FDCPA and FCRA compliance through ongoing education, and by attending seminars and meetings throughout our affiliations with the Commercial Law League of America (CLLA), the American Collectors Association (ACA), and DBA International (DBA).
Our company’s commitment is to constantly reinvest in our employees, new technology, recovery resources, professional staff, legal solutions, and innovative systems and procedures.
ARS’s legal solution is centered around our network of experienced collection attorneys. Our Forwarding Department coordinates litigation services for all 50 states and beyond. By having successfully litigated tens of thousands of cases for creditors, our legal network has the litigation experience to help our clients achieve maximum results and minimize any potential exposures.
ARS utilizes a wide range of technological tools and resources to help each client achieve the best possible results. Our staff has access to the latest software programs with enhanced security and a state-of-the-art secured network with a full disaster recovery program.
Our focus is on the specific needs of each client’s portfolio, whether it is for one claim or for thousands and is built on systems and personnel already developed, tested, and proven on a day to day basis. ARS will never close an account until every collection option has been exhausted.
Our services are based on a contingency fee arrangement; therefore if our attempts to collect are not successful, you will not be charged!
Compliance
ARS Collection Agency is fully compliant and adheres to all Federal and State Collection practices regulations. We follow high standards for compliance, confidentiality, and privacy requirements.
Accounts Retrievable Systems - Debt Collection Agency
Third party debt collectors are also referred to as collection agencies, and are hired by credit companies and other businesses to collect payment on debts that have become significantly past due. Sometimes the borrower will still owe money to the original creditor, while other times the collection agency will actually purchase the account, and the borrower will owe money directly to them. Third party debt collectors will employ a number of different methods in order to attempt to collect.
Once a credit account becomes past due, the account will be sold to a collection agency or the agency will simply be retained by the creditor to collect on the account. The third party debt collectors will then begin attempts to try to collect the funds. They will usually send letters in the mail and place numerous phone calls in an attempt to get the borrower to pay. There are laws governing the amount and types of phone calls that third party debt collectors can make.
For instance, it is unlawful for third party debt collectors to call before 8 a.m. or after 9 p.m., or to behave abusively or in a threatening or harassing manner on the phone. They may not contact friends, family members, or coworkers except to obtain a phone number or place of residence for the debtor. They may not share information about the debt owed, or report it to any other credit agency. These are just a few of the regulations that third party debt collectors must follow, though in many cases they do not follow them, and it is up to the debtor to report the company to authorities.
These third party debt collectors exist because credit companies often do not have the time or resources to deal with numerous delinquent accounts. It often works out in the credit companies’ favor to have a third party debt collector handle the collections process, because they are more likely to get results and collect the funds that are owed, saving time and money for the credit company. This is often true even if third party debt collectors are authorized to settle the account for a smaller percentage of the money that is owed.
Accounts Retrievable Systems - We Collect Judgements
A debt collection agent is trained to convince debtors to repay the money they owe. This typically involves contacting debtors by phone in order to collect money, but debt collection agents often use the mail to contact debtors as well. They are typically trained to secure payment in full, but may also have authorization to settle or make payment arrangements. A debt collection agent may work for a single company and collect debts on its behalf. In some cases, however, he may work for a debt collection agency and collect money for a variety of companies.
In most cases, a debt collection agent contacts people who have fallen significantly behind on paying their bills. For example, a person with this job is often called on to contact a person who is at least a couple of weeks late with a bill. The amount of time a company will wait before beginning collection efforts may vary from business to business, however.
A debt collection agent usually calls a debtor, informs him of the amount of money he owes, and then requests payment in full. If a debtor provides a reason for his payment troubles, a debt collection agent usually tries to get him to pay despite his reasons. In many cases, a person with this job is trained to use persuasion to convince a debtor to pay. He may tell the debtor that refusing to pay will damage his credit report or lead to legal action. He may also appeal to the debtor’s sense of responsibility for paying his debts or even suggest ways to raise money.
Often, a debt collection agent is authorized to negotiate an agreement in the event that a debtor is unable to pay in full. For example, he may be authorized to accept a reasonable agreement for monthly payments. He may also have authorization to make a settlement offer. For instance, he may agree to take 70 percent of the total bill if the debtor pays right away. In such a case, the rest of the debt would typically be erased.
Usually, a debt collection agent attempts to obtain a payment right away. He may ask the debtor to make a payment by phone, using a check or credit card, for example. Often, debt collectors feel it best to get at least some money up front. This may be due to the fact that some debtors will only make an agreement in the hopes of getting the debt collector to hang up the phone.
If debt collection efforts are unsuccessful, a debt collection agent may try again on a later date. This depends on the policies of the company that hired him. Eventually, however, he may turn the account over to an attorney who may obtain a court judgment against the debtor.
