Judgments and How Collections Agencies Enforce Them

By newAccts,

debt collections, accounts retrievable system, erase bad debt, reduce expenses, debt collection agency, debt collection services, judgement collections, collecting child support, collect alimony

Judgments & How Collections Agencies Enforce Them

Once you have won a judgment, you are now considered the judgment creditor. As a creditor, there are many collection techniques available. In fact there are more techniques available than when you try to collect debts before getting a court judgment. Below are listed methods of collecting a judgment and limits to what property you can take.

Methods of Judgment Collection

Wage Attachment/Income Execution:

The first item we will go after is the judgment debtor’s paycheck through wage attachment or garnishment. This is a very effective technique when the debtor is receiving a regular paycheck. Even though a person receives a paycheck, they still may not be willing to pay for one reason or another. Through wage garnishment, you are sure to receive your money from the debtor before they get a chance to even see the money. Federal law allows a certain amount of the debtor’s earnings to be taken by the creditor, in most states. There are higher limits for certain types of debt, such as child support and income taxes.

Property Liens:

In most states, once a judgment is entered against a debtor there is a lien automatically placed on the real property they own in the county where the judgment was obtained. Instead of waiting for the debtor to sell their property, you the creditor can “execute” on the lien. This means having the sheriff seize the property and arrange for public sale from which you are paid out of the proceeds. This is an extreme measure that needs to be considered carefully. The expense and hassle of executing a lien may not be worth the return on the sale.

Property Execution:

A property execution is a way of taking personal items from your debtor in order to pay the debt owed. This is where you, as the creditor, can get a “writ of execution” from the court and go after the personal property of the debtor. Only a judgment creditor can levy a debtor’s property, so the judgment must be awarded first. After a sheriff takes the personal property (a baseball card collection, for instance) they will sell it and the proceeds will go to paying off the debt.

Assignment Orders:

An assignment order allows the creditor to go after property that cannot be subject to a levy. For example, this can be an anticipated tax refund or an annuity policy.


Limits on What a Judgment Creditor Can Take

This is something that varies state to state. The professionals at Accounts Retrievable will be able to navigate through the laws by utilizing our nationwide network of attorneys. Every state has certain property that is considered “exempt” from being seized by a creditor. You can learn more here about what is exempt from debt collection in New York State.


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Debt Collector or Scam?

By newAccts,

Debt Collector

It’s bad enough to deal with calls from a debt collector. However, a phony debt collector calling to scam you out of money is even worse. Recently, the Federal Trade Commission settled charges with a California man who worked with a fake debt collection company in India. He and the company deceived Americans to the tune of $5 million over two years. While that bogus operation has been shut down and criminal charges are pending, we can expect that similar scams are in the works. The good news is that there are many warning signs that can give away a phony debt collector. Accounts Retrievable would like to help you spot these scammers so that you and your finances remain safe.

–  One major thing to understand is that you cannot be arrested for having private debt. If you are being threatened with imprisonment or being told you are talking to a law enforcement officer, you can be sure it’s a scam.

–  If you start asking questions of the debt collector and the story starts to unravel, it is probably a scam. Fake debt collectors will refuse to provide a written “validation notice” of the debt. This is a required practice under the Fair Debt Collection Practices Act.

–  The most suspicious demand will be a payment using a transfer service such as Moneygram or Western Union. This is a huge red flag.

The people who are often targeted by these scam artists are usually people who are in financial unrest. The scam artists  are most likely getting information about these people from the internet so that they know who to target. They are counting on these people to be confused and overwhelmed about their debt and easily tricked by scare tactics.

Bottom line: ask a lot of questions and get your paperwork in order so that you know what you owe and to whom. These fake debt collectors are counting on people being unorganized and unaware of their rights. If you are educated and aware of your personal debt and the basic practices of a collections agency, then this is your best defense against a scammer.

Call Accounts Retrievable System For More Info at (800) 327-4687

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