Accounts Retrievable Systems – Info About Judgment Collection
The person who is awarded a judgment is called the judgment creditor, and the person who owes the amount awarded is called the judgment debtor.
To begin collecting a judgment, you should contact the judgment debtor either directly or through the debtor’s attorney if the debtor was represented by an attorney, and request payment of the judgment amount. If the judgment debtor does not pay, you are entitled to begin collection efforts. These may include one or any combination of the following:
a) garnishment of wages and or bank accounts,
b) lien, seizure and or sale of real property and or personal property, including automobiles,
c) suspension of motor vehicle registration, and or driver’s license, if the underlying claim is based on the judgment debtor’s ownership or operation of a motor vehicle,
d) revocation, suspension, or denial of renewal of any applicable business license or permit,
e) investigation and prosecution by the State Attorney General for fraudulent or illegal business practices, and
f) a penalty equal to three times the amount of the unsatisfied judgment plus attorney’s fees, if there are unpaid claims.
You may read information on these collection methods in the Collecting the Judgment section below.
You may need the services of an enforcement officer. An enforcement officer can use the power allowed to him or her by the law to collect the amount due to you. To learn more about enforcement officers, continue reading below.
Accounts Retrievable - Small Claims Court Judgment
The Sheriff’s Office can attempt to collect on an outstanding Small Claims Judgment on your behalf if the defendant does not pay within thirty (30) days of the judgment.
If after the thirty day period the defendant does not pay, you may bring or mail your judgment to us and we will attempt to collect the amount of the judgment, plus interest, fees and poundage. The fee for this is $25.00.
In order to have any success in collecting your judgment, you must provide as much information as possible to assist in our attempt to collect. The more information you can provide, the better the chance we will be able to satisfy your judgment.
If you have asked the Sheriff to execute a judgment to seize assets, you must provide as much information about the location of the debtor’s assets as possible, such as:
• Bank accounts (bank names, account numbers, savings/checking);
• Brokerage accounts and securities holdings (companies, account numbers);
• Real estate holdings (addresses);
• Vehicles owned (makes/models, years, license plate numbers); and
• Business holdings (Does debtor own any businesses? Names, addresses).
You may know some of this information or be able to find it on statements, canceled checks, bills, or other papers you have in your records. You can check with the New York State Department of Motor Vehicles to find out if the judgment debtor owns a car that is registered in the state. Most important, you can obtain an “Information Subpoena,” which is a legal document that requires a person (or business entity) to answer questions about their assets. The Small Claims Court Clerk can advise you about this process.
For more information, visit the New York City Small Claims Court website.
Please note: There are additional fees involved if the Sheriff must seize personal property for auction to satisfy the judgment. Some of these costs can be substantial. This will not be done unless costs are paid in advance.
Certain property is exempt from being seized to satisfy a judgment.
Judgments from a Small Claims Court outside of New York City are not valid in New York City unless docketed in a New York State Supreme Court.
What you need to bring/send us:
• Copy of the Judgment
• Completed Request for an Execution
• Completed Creditor’s Advisory
• Check or Money Order for $25.00 made out to “NYC Sheriff”
Accounts Retrievable Systems – Collecting Your Judgements
If you have judgments and want to collect, here’s how to start.
1. Don’t start too soon.
Don’t be in a rush to ask for your money. Most states give a losing party the right to appeal, so it’s usually a good idea to wait until the deadline for filing an appeal (usually 30 days or so) has passed. If you start bugging the other party sooner, you may just nudge him or her into filing an appeal. And generally, the other party doesn’t have to pay a judgment while an appeal is pending.
2. Ask for your money.
A surprising number of debtors will pay their court judgment if you ask nicely. A business-like request for payment is often all it takes, especially if you mention that an unpaid judgment will probably show up on the debtor’s credit report. Don’t tell the debtor exactly how you plan to collect your judgment if he or she doesn’t pay up, however — this may just encourage the debtor to start hiding assets.
3. Suggest ways the debtor can raise cash to pay you.
Once you win a court judgment, you are legally entitled to your money. If the debtor claims he or she wants to pay but doesn’t have the money, suggest some ways to raise cash — for example, by borrowing money from a friend or relative, taking a cash advance on a credit card, or dipping into retirement accounts.
4. Start with easy-to-reach assets.
When you’re planning a collection strategy, it makes sense to start by going after the low-hanging fruit. Wages, bank accounts, and money paid to a debtor’s business are all relatively easy assets to grab — and the procedures for doing so are simple and inexpensive. On the other hand, trying to force a sale of the debtor’s vehicle, house, or personal property can be complicated, expensive, and time consuming.
5. Don’t harass the debtor.
Although you are entitled to go after your money, you should not harass or threaten the debtor. Avoid practices like calling the debtor early in the morning or late at night, repeatedly visiting the debtor at work, or threatening to harm the debtor for failing to pay. Humiliating or intimidating a person who owes you money can be counterproductive, and it could even get you sued.
6. Consider settling for less.
You have the legal right to collect the full judgment you won, but that doesn’t mean that you’ll be able to do it. It can take a long time to collect a judgment, and you might have to spend a lot of energy tracking down the debtor’s assets (or waiting for him or her to acquire some), taking them, and converting them to cash. In many cases, it makes more sense to settle for a bit less than the full claim, in exchange for having the whole thing over and done with.
7. Pay attention to timing.
In many circumstances, you’ll want to move quickly, in order to maintain the element of surprise. For example, a debtor who knows that you plan to go after the money in his or her bank account is likely to close the account and move the cash — before you ever get your hands on it. You’ll also want to make sure to move at the right time — for example, by going after the debtor’s bank account right after he or she deposits a paycheck, not right after he or she pays off a mortgage.
8. Keep tabs on the debtor.
Until you’ve collected your judgment, you will have to keep tabs on the debtor. You’ll want to know if he or she moves, gets a new job, buys an expensive vehicle, or inherits money, for example. Make a point of calling the debtor periodically — and stay in touch with any mutual friends or business contacts who might have valuable information.
9. Consider hiring an expert, if necessary.
There are plenty of collection professionals out there, who will try to collect your judgment in exchange for a percentage of whatever they are able to get from the debtor. If you have had no success in collecting your judgment or you aren’t willing to spend the time and effort necessary to get your money, hiring an expert might be a good idea. After all, it’s better to get some of the money you’re owed than none.
10. Know when to give up.
There are lots of way to collect a judgment — but all of them take time and money. And even though you’re entitled to recover many of the costs of collecting a judgment from the debtor, that won’t do you much good if you can’t even collect the original judgment. Remember the old saying, “Don’t throw good money after bad”? If you’re dealing with a debtor who is unwilling or unable to pay, you might eventually have to decide to cut your losses.
Accounts Retrievable Systems - Collecting A Small Claims Judgment
Winning in small claims court is only half the battle. Nationally, 79 percent of small claims judgment debts are never recovered. Many judgment debtors, the losing party, prove “judgment proof,” meaning they are unable to pay due to extreme lack of assets. While a great number of judgment creditors, the parties who won the judgment, simply give up once collecting from an elusive judgment debtor becomes too time-consuming. However, perseverance and using a variety of legal tactics can increase a judgment creditor’s chances of recovering the court-awarded debt.
1. After the Judge’s Ruling
Try to collect from the judgment debtor immediately after the judgment is given. Approach him while still in the courthouse and obtain a commitment from the judgment debtor.
Allow the allotted time for payment to pass without provoking or asking him to pay voluntarily. Depending on the state, the length of time can vary between two and 30 days.
Check with the court clerk to find out if the judgment debtor has filed an appeal. Depending on the state and court, you can do this online, on the phone or with a letter of request. A losing party may have anywhere from two to 30 days to file an appeal. If an appeal has been filed, you must wait until it’s been decided before using legal procedures to try and collect the debt.
If the time allotted has expired, send a certified letter to the judgment debtor demanding payment for the full amount the court awarded. Ask to receive payment within a limited amount of time. Include the case number and keep a copy for your records.
2. After the Time Has Expired
Request that the court order the judgment debtor to submit a written disclosure of assets and income or a Judgment Debtor’s Statement of Assets if the person refuses to pay. Use the information to determine if the debt owed can feasibly be collected and if so, from which asset.
Uncover the judgment debtor’s assets even if he failed to complete the Statement of Assets by applying for an Order of Examination. This order requires the judgment debtor appear in court for questioning regarding his assets. Ask the court to issue a bench warrant for his arrest if he does not appear.
Compile a list of of financial questions to ask at the judgment debtor examination. Ask questions about his living situation, employment, marital status, bank accounts, credit cards, real property and more. And take notes. This information is a database of property you may eventually have to take through process of the law.
Pay the fee to have the court clerk issue an Abstract of Judgment-Civil to put a lien on the debtor’s property. Take or mail the Abstract of Judgment to the County Recorder’s office in the county where you believe the debtor owns real property. You will not be paid automatically, but if there is a refinancing or sale of the property, you should get paid your money with interest.
Petition the court to issue a Writ of Execution to garnish the debtor’s wages. You’ll then need to prepare an Application for Earnings Withholding Order. Many counties require you to hire a process server to serve the employer with the necessary papers to make sure you will be paid.
Tips & Warnings
Consider a payment plan if the judgment debtor is unable to pay the full amount all at once.
Let the judgment debtor know he can make payments through the court if he does not want to deal with you.
Encourage the debtor to pay you voluntarily. If you are too aggressive in collecting your judgment, the debtor may file for bankruptcy.
Make a copy of the judgment.
You can ask a lawyer or collection agency to help you collect your judgment. But you may have to pay a percentage of the judgment in fees.
Do not threaten physical harm at any time during the process.
Avoid any illegal activity when trying to receive payment.
If the defendant’s correct name is different from what’s written on the judgment, you need to ask the court for a new judgment with the correct name.
Accounts Retrievable Systems – Collecting On A Judgement
A civil judgment is a court order to pay a specified amount of money. Civil judgments must be collected by the person to whom the money is owed, known as a judgment creditor. Judgment creditors may be unpleasantly surprised to know that collection of the judgment is often an arduous and lengthy process, and that it is not rare to be unable to collect the amount at all. Nevertheless, there are some strategies that facilitate the judgment collection process.
Consider hiring an attorney with experience in debt collection and enforcement of judgments in the jurisdiction where your civil judgment was entered. Collecting on a judgment may require court hearings and knowledge of how to levy against a debtor’s property and assets.
Negotiate an installment agreement with the debtor. Ask the court to order the debtor to repay the judgment in installments. If the court does not order the installment agreement, ask the debtor to voluntarily enter into such an arrangement.
When a judgment is entered in the Civil Court of New York State it is enforceable for a period of twenty years for money only, it is not a lien against real property. Nor is a judgment entered in one county a lien on real property in any other county. If a judgment-creditor wishes to enforce a judgment against real property, he or she must follow the procedure below for “transcripting” the judgment. A transcript is a paper containing the essential information of the judgment, certified by the clerk in the county where the judgment is entered.
Place a lien on the debtor’s assets. File a lien with the court against the debtor’s land, buildings, or place of residence, in the county where the assets are located. This lien restricts the debtor’s ability to sell the assets without first using the proceeds of that sale to pay off your judgments.
Before the County Sheriff can seize personal property or assets of the Debtor, the Creditor must first identify the property to be seized. To learn the Debtor’s assets, a Creditor may request an Information Subpoena from the City Court for a fee. An Information Subpoena is a legal document that directs the Debtor to answer certain questions regarding the existence and location of assets as well as employment and wage information. (Although usually served on the Judgment Debtor, an Information Subpoena may be served on another person or corporation, such as a bank, that has knowledge regarding the Debtor’s assets.)
Garnish the debtor’s wages, bank accounts or rent payments due. After providing the name of the employer, the bank account numbers or other relevant information, you can request the court to attach, or garnish, the debtor’s property. Funds from the garnishment can be used to repay the judgment, unless they are subject to an exemption, such as those received from unemployment compensation, Social Security, or worker’s compensation.
Tips & Warnings
-Most states limit the percentage of a person’s wages that are subject to garnishment.
-Some property can be transferred even if a lien has been placed upon it, if the person acquiring the property is willing to assume the property without receiving clear title to the property. This may be the case with a family member.
Accounts Retrievable Collection Agency - Enforcing A Judgment
You need to enforce a judgment you received following a lawsuit. If you sit back and wait patiently, the court will not enforce it for you. Judgments merely grant you the legal ability to use more aggressive debt collection practices, but you have to actively pursue those practices lest the effort you put into suing the debtor become worthless.
Always remember that your judgment enforcement options vary depending upon the laws in the debtor’s state – not the laws in your own state. Be absolutely certain that you are legally entitled to enforce your judgment in a certain way before you attempt it. Not enforcing court judgments legally could leave you the defendant in a lawsuit rather than the plaintiff.
Things You Will Need
Certified copy of the judgment
Writ of garnishment or execution
Step 1
Ask the court clerk to prepare a certified copy of your judgment. The certified copy serves as proof that you sued the defendant and won the lawsuit. Without a certified copy of a judgment, you won’t be able to take advantage of your legal judgment enforcement rights. Preparing the certified copy of the judgment will take several days and sometimes as long as a week, depending on how backed up the court is.
Step 2
Find out where the defendant works and banks, if you haven’t already. You’ll need to provide this information when enforcing your court judgment.
Step 3
Take the certified copy of your court judgment to the county clerk’s office. Do not get the county clerk’s office confused with the court clerk’s office – it isn’t the same location. Provide the county clerk with your certified judgment and the name and location of the defendant’s employer. Ask that the county clerk prepare a writ of garnishment.
Step 4
Contact the sheriff’s office. Request that a representative from the sheriff’s office deliver the writ of garnishment to the debtor’s employer. The debtor’s employer will have no choice but to begin garnishing his wages and submitting those wages to you. Keep in mind that garnishment limitations exist and follow federal law. Therefore, if the debtor earns less than 30 times the federal minimum wage, his employer does not have to withhold his pay.
Step 5
Research the public records in the defendant’s county of residence to determine whether or not he owns or co-owns any property. You can conduct this research either online or at the local courthouse.
Step 6
Take the certified copy of the judgment back up to the county clerk’s office and request a writ of execution if you discover that the debtor does, in fact, own property. You must have the location address of the property that he owns for the clerk to enter on the writ of execution.
Step 7
File the writ of execution in the county’s Land Records office. This creates a real estate lien against the debtor’s home. A real estate lien prevents him from refinancing – and usually from selling – his home until he pays off the judgment that he owes you.
Some states do not allow wage garnishment but do permit checking account garnishment. Very few states have laws restricting a creditor’s access to all forms of judgment enforcement. If a debtor owns no property, holds no job, or lives solely on income that is exempt from seizure, that debtor is judgment proof. Judgment proof debtors are often immune to judgment recovery efforts.
Wage garnishment, the most common type of garnishment, is the process of deducting money from an employee’s monetary compensation (including salary), sometimes as a result of a court order. Wage garnishments continue until the entire debt is paid or arrangements are made to pay off the debt.[2] Garnishments can be taken for any type of debt but common examples of debt that result in garnishments include:
▪ child support
▪ defaulted student loans
▪ taxes
▪ unpaid court fines
When served on an employer, garnishments are taken as part of the payroll process. When processing payroll, sometimes there is not enough money in the employee’s net pay to satisfy all of the garnishments. For example, in a case with federal tax, local tax, and credit card garnishments, the first garnishment taken would be the federal tax garnishments, then the local tax garnishments, and finally, garnishments for the credit card. Employers receive a notice telling them to withhold a certain amount of their employee’s wages for payment and cannot refuse to garnish wages. Employers must correctly calculate the amount to withhold, and must make the deductions until the garnishment expires.
Wage garnishment can negatively affect credit, reputation, and the ability to receive a loan or open a bank account.
At present four U.S. states — Pennsylvania, North Carolina, South Carolina and Texas — do not allow wage garnishment at all except for debts related to taxes, child support, federally guaranteed student loans, and court-ordered fines or restitution. The federal garnishment limit (with some exceptions like child support and student loans) on a weekly basis is the lower of (A) 25% of one’s disposable earnings (what’s left after mandatory tax deductions), or (B) the total amount by which one’s weekly wage exceeds 30 times the federal hourly minimum wage. Several other states observe maximum thresholds that are lower than the maximums provided by federal law. States may also prohibit garnishment altogether in certain circumstances. For example, in Florida the wages of a person who provides more than half the support for a child or other dependent are exempt from garnishment altogether (though this is subject to waiver). Loans and negotiations with creditors can also help debtors to avoid wage garnishment.
In Minnesota, there are five limits on wage garnishment. Creditors cannot garnish wages for social security benefits, retirement benefits, welfare payments, workers’ compensation benefits, or income associated with disability or unemployment insurance.
In many states when the person is an employee or appointee of a governmental unit the writ is called a Writ of Sequestration. These are processed by the courts in the same manner as garnishments and are subject to the same wage exemptions.
In the United States, firing an employee to avoid handling a levy may be a criminal offense. Federal law provides for a fine of up to $1,000 and imprisonment for up to one year on an employer who willfully fires an employee in connection with a garnishment of the employee’s earnings.
Accounts Retrievable Systems - Personal Debt Relief
Origins of Personal Debt Relief
Debt relief existed in a number of ancient societies:
▪ Debt forgiveness is mentioned in the Book of Leviticus, in which God councils Moses to forgive debts in certain cases every Jubilee year – at the end of Shmita, the last year of the seven year agricultural cycle or a 49-year cycle, depending on interpretation.
▪ This same theme was found in an ancient bilingual Hittite-Hurrian text entitled “The Song of Debt Release”.
▪ Debt forgiveness was also found in Ancient Athens, where in the 6th century BCE, the lawmaker Solon instituted a set of laws called seisachtheia,and which canceled all debts and retroactively canceled previous debts that had caused slavery and serfdom, freeing debt slaves and debt serfs.
▪ In addition, the Qur’an (the Muslim scripture) supports debt forgiveness unable to pay as an act of charity and remission of sins for the creditor. The injunction is as follows:
If the debtor is in difficulty, grant him time till it is easy for him to repay. But, if ye remit it by way of charity, that is best for you if ye only knew.
—Qur’an 2:280
Contemporary
Personal debt has become an increasingly large problem in many developed countries in recent years, due to credit bubbles. For instance, it is estimated that the average US household has $19,000 in non-mortgage debt. With such large debt loads, many individuals have difficulty making repayments on debts and are in need of help.
There are many companies who offer debt consolidation services. However, such services may not always be in the best interests of the person involved and may involve taking out a loan secured by a person’s home. Marketing materials are designed to persuade customers to take up the company’s offer rather than offering a personal best solution for reducing debt. Where debt has become a problem, it is often best to turn to an independent consumer’s association for advice before calling debt consolidation companies as consumer’s associations often have great experience with such problems and may be able to advise the most effective avenues for debt relief- for the price.
As long as some form of Chapter 7 bankruptcy debt relief exists within American law, the credit card companies must pay attention, and do as much as they can to help their clients repay debts through relatively traditional means (depending upon the service those clients have entered). Even leaving bankruptcy aside, it is in the best interest of credit card companies that their debtors at least feel some motivation to continue repaying their accounts and not simply disappear or view those ever growing balances as untouchable.
Accounts Retrievable Systems - Collection of Debts
If your collection agency doesn’t collect anything am I still charged a fee?
No collection, No Fee!
Are you bonded?
Yes, we hold a Surety Bond.
Do you report to the credit report agencies like Experian and Trans Union, and if yes, is there a fee?
Yes, we do report to credit bureaus for our large volume clients, and it is a free service.
What do I do if the debtor calls our office?
The debtor must be directed back to our office to resolve this matter. In many cases, the debtor has made a promise to pay an amount either in full or by means of a “part payment.” The call to you amounts to a plea for “leniency.” The debtor may also tell you a different story than he told our attorney because the attorney has, in all likelihood, obtained information beyond what the debtor claims as the reason for nonpayment. We always strive for the fastest possible recovery of your money and the fastest recovery will always be a result of a unified stance between our company and you.
What do I do if I receive a payment from the debtor?
Contact our office immediately and make us aware of the payment and if possible fax a copy of the check to us.
What happens if my product is returned to me due to your collection efforts?
Your debt collection expense will only be 50% of the preferred rate against the present value of the returned product.
We have some delinquent accounts that promise to pay us soon, but never follow through. When should I send these accounts to collection?
Ideally, any accounts that reach and surpass the 90 day point of delinquency, are good candidates for placement with our office. Customers at this point have had ample time to pay their account, address any dispute, and contact you with any questions.
What type of documentation do I need to forward to you to start the collection process?
Send us our completed placement form along with a comprehensive statement of account, and if available; invoice copies, are usually sufficient to start the process. If you have the customer’s credit application handy, this is very helpful as well. Of course, any “bad“ checks that are part of the debt are required as well.
Accounts Retrievable Systems - Our Collection Agency
Since 1986, ARS 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 serves a broad spectrum of industries.
Accounts Retrievable 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 strives to remain a leader in the industry. Accounts Retrievable 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.
Accounts Retrievable Collection Agency’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.
Accounts Retrievable Collection Agency 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!
