A bank garnishment is a means of collecting debts by recovering money directly from a debtor’s bank account. This process is usually a result of a Sheriff’s or Marshal’s Bank Execution. Ignoring outstanding debts can lead to wage garnishment and the freezing of bank accounts. While there are many tactics to collecting debts, bank garnishment is often the most effective way of recovering money from a debtor.
What Is Garnishment?
Types of Debt That Can Result in Wage Garnishment:
When you employ a debt collection agency such as Accounts Retrievable, we attempt to collect debts through other means as it is the best practice when a debtor pays willingly. Part of doing this is having a vigilant and persistent debt collection agency that can work to understand the debtor and their current financial situation to find a solution that works for all parties involved. However, there are some debtors that are simply unwilling to pay or unwilling to make the sacrifices necessary to pay their debts. It is at this point where bank garnishment orwage garnishment is the solution to recovering judgments and debt.
Bank garnishment is effective since the money is taken directly from the bank account of the judgment debtor. Not only will the creditor get their money back, but the debtor is forced to face their financial situation. When the action taken affects a debtor’s ability to pay other bills or buy things they want, people can not help but address this unfortunate situation.
At Accounts Retrievable, we have a long running track record of recovering debts while maintaining respectful and legal practices. We pride ourselves on being able to help our clients collect judgments while maintaining positive relationships with the creditor and debtor alike. Some debt collection agencies are highly aggressive to the point of harassing debtors. However, we feel that all people should be treated respectfully. This is not to say that we are not aggressive, we just have a mission to have positive business relationships and abide by the law.
Debt collectors who work on commission may be highly motivated to convince debtors to pay the debt; These practices are highly regulated by The Fair Debt Collection Practices act, State laws to protect consumers, the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission,and State regulatory agencies. Several Federal and State higher courts decisions have outlined several bad practices; Heintz vs. Jenkins,In re: Vinhee, Mcollough vs. Johnson, Rodenburg, Lauinger, Komarova v. Nation Credit Acceptance Inc.
The FDCPA prohibits calls to the debtor if the call will cost the debtor toll charges (in most other countries recipients of telephone calls are not charged, so this issue does not arise). The FDCPA also establishes what time of day calls can be made at, to whom and where. If a person answers, the call center may track statistics (e.g., the times and days when someone answers) in order to place calls at times when the debtor is more likely to be home; typically this is done by an automated dialing system between the times of 8am and 9pm local standard time. The collector may not use illegal and deceptive practices (for example, threatening the debtor with arrest or impersonating law enforcement). The collector cannot use obscene language and must inform the debtor of the nature of the call (collecting a debt) and their name and the name of the collection company when requested.
Collection agencies are sometimes allowed to contact individuals other than the debtor, usually in an attempt to locate the debtor but without mentioning the debt. In the US, a collector is permitted to call a neighbor or relative for help in locating the person who owes a debt. Collectors may only ask for “address, home phone number, and place of work.” Collectors are “not permitted to discuss [the] debt with anyone other than [the debtor], [their] spouse, or [their] attorney.” Collectors must state their name and must give the name of their employer if the person specifically asks. They may only contact each person once, unless it is believed that the person gave the collector incorrect or incomplete information at the time, but now has complete or updated information. Collectors may contact a debtor at the workplace unless the collector has been informed the employer prohibits such calls, in which case the collector must cease all calls to the debtor’s workplace immediately.
At times a person with no connection to the debt or the debtor may be contacted by a collector by error. Examples include victims of identity theft and people erroneously targeted due to a similar name. Alternatively, the alleged debtor may dispute that the debt is payable. In such cases the alleged debtor can require that the collector or creditor prove that the debt is payable—in no jurisdiction does a debt exist merely because a collector says so. In the United States, anyone has the right for any reason to request written validation of the debt or to demand the collector cease communication.
Relatives of deceased people do not necessarily themselves have to pay the debts of the deceased, but debts must be paid by the deceased person’s estate.
To manage an establishment profitably, a part of your policy should include knowing when to outsource difficult accounts to a debt collection agency. Every owner has to stay on top of their receivables and check their cash flow. Whether you sell a product or provide a service, you probably experience late-paying or none-paying customers from time to time. That means that you have to have a good, uniform internal debt collection policy in place.
» One significant reason this is true is because your delinquent accounts continue to decrease in value, at a rate of 15% per month. And the longer an account goes delinquent, the more difficult and costly it is to collect. In addition to spending more time, capital, and resources going after these depreciating accounts, its also costing your company in lost opportunity dollars, by taking you away from your core revenue-generating functions. It is much more cost effective and efficient to outsource these problematic accounts to an unbiased third party debt collection agency.
Here are some questions you may want to consider when hiring a debt collector:
1) Are they licensed in all 50 states?
Many states require a license to collect a debt in their particular state so its important that the debt collectors are licensed in all 50 states. What if one of your customers moves out of state? Well the collection could become rather difficult and if the debt collector attempts to collect it in a state where you are not licensed the ramifications could be disastrous for you and the collection agency.
2) Do they have insurance?
Ties into number one because collection agencies obtain insurance to protect themselves in case a member violates state or federal laws. It minimizes your company’s risk in case the collection agency makes a mistake.
3) What will be expected of me as a client?
Knowing what the collection agency requires of you is a good thing to maintain an effective working relationship. They are basically an extension of your company and you will want them to act accordingly so the same goes for you. Typically, the collection agency will want you to send them “clean” accounts receivable data, meaning all the balances due and documentation must be correct. Otherwise, it’s just about impossible to collect.
4) What technologies do they use?
You would obviously want the collection agency that you hire to have the latest and up-to-date technology. If they are using the most up-to-date technologies that most likely means they are looking for a long term goal of staying in business. The latest technology also proves more effective debt collection.
5) What do you do differently than other agencies?
There are thousands of collection agencies out there. Some big and some small. Many are great at collection debts but the main thing is what they do differently. Do they send you regular reports that make your company’s AR Departments lives easier? Do they customize their services to better suit your type of business? Ask them how long it takes them on average to see a return on monies owed.
These are some of the more important things to be asking yourself when choosing a debt collection agency. Every company has different needs and more than likely you can find an agency that fits yours.
While the end of the year means holidays filled with celebration and family, it also means focusing on year end budgets and hitting targets. Holiday debt is created by overindulgence, which can be more troublesome when the debtor already owes a substantial amount of money. Often times in the spirit of the holidays, debts are pushed aside by either the debtor, the creditor, or the judgment holder. When people owe monies, such as debts, judgments, or even child support and spousal support, they tend to put things on the back burner in the name of the holidays. While we at Accounts Retrievable understand this phenomenon, we also understand how challenging this can be for a business or an individual that is owed money.
Throughout the years, the holidays are notorious for being troublesome months for collecting debts. People will simply not pay what they owe because they will buy presents and celebrate by creating holiday debt regardless of how much they owe to others. It is possible to be in the holiday spirit and be empathetic to a debtor’s situation while also being firm in collections efforts. Sometimes people get caught up paying for things they need in the immediate moment and are so focused on the many lists of things that need to be done and simply forget they are in debt to anyone.
The goal of any business owner or individual is to not end up with an increasing number of receivables in January after the buying season has slowed down. People are starting to pay off their holiday debts come January and leave their existing debts for a later date. It is important as a business owner or a debt collections agency to still be active in the collections process while being understanding of the time of year. The most important tool you can use is to stay organized and keep on top of your receivables. Your debtors are likely to be unorganized this time of year so it is important that you maintain the organization needed to collect your money responsibly.
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Collecting child support for custodial parents is one step in establishing payments. When the custodial parents establishes child support, the local court office will conclude the amount of monthly payments the non-custodial parent will be obligated to pay. When the non-custodial parent receives their orders to pay child support, they must live up to their obligations or suffer the penalties.
Here are some steps to collect child support:
»The First Step is if you were not married when your child was born, the first step is to establish paternity – legally determining the father of the child. Many men will voluntarily acknowledge paternity. Either parent can request a blood test in contested paternity cases. Your caseworker will help you establish paternity for your child.
»The next step is to establish the obligation. State guidelines determine the fair amount of child support that the noncustodial parent should pay. Your child support office will be able to tell you how support amounts are set in your state. Your child support office can also request medical support for your child.
»The last step is to enforce the child support order. Our child support division can help collect your money no matter where the noncustodial parent lives.
Although the most successful way to collect child support is by direct withholding from the obligated parent’s paycheck, Federal and State Income Tax refunds may be withheld to collect unpaid child support. States also have laws that allow them to use: liens on real and personal property; orders to withhold and deliver property; or seizure and sale of property with the proceeds applied to the support debt. Many states routinely report child support debts to credit bureaus, which would affect the noncustodial parent’s credit.
85% of judgments awarded to creditors go uncollected. There are many reasons for this. One big one is that people do not know how to go about collecting unpaid judgments in New York. The legal system is difficult to navigate and takes a lot of time that most people do not have. Another major reason is that people do not want to share their money on a judgment collection specialist. However, the truth is that without a judgment collection specialist such as Accounts Retrievable you will likely be joining the 85%.
It is important to take appropriate action when faced with unpaid judgments in New York. Accounts Retrievable is a network of collections specialists and attorneys that work on a contingency fee while collecting your judgments. A judgment awarded in your favor doesn’t mean that the debtor will pay. It simply means that the court has sided with you and you need to go about collecting your debt. Peoples debts do not go away when they simply avoid paying. However stubborn debtors tend to be proficient in avoiding paying debts and will not care that they even have a judgment against them. When you choose ARS, we use all the tactics legally allowed to ensure that they care about their judgments.
Have you been awarded a judgment in New York but are having difficulty collecting your money? Accounts Retrievable can help you with judgment collection in New York. We will figure out exactly why a debtor cannot or is refusing to pay and find solutions. We collect judgments without wasting time with simply urging the debtor to pay what they have been refusing to pay for years. At Accounts Retrievable we treat our clients with courtesy and respect. We utilize aggressive tactics that we are legally allowed to use in order to get your judgment collected.
Accounts Retrievable Systems
Quality judgment enforcement and judgment collection doesn’t have to be a hassle. If you are stressing about collecting your money, then it might be time to hire the professionals at Accounts Retrievable. We are fully staffed with investigators, attorneys, and professional skip-tracers. These professionals are necessary due to the simple fact that 80% of all judgments go uncollected. This is because after the court awards the judgment, it is up to the creditor (you) to figure out how to enforce and collect the judgment. For most people, navigating the legal system is something they do not have time, energy, or money to pursue. Accounts Retrievable is your solution to judgment collection in New York.
It is important to keep in mind that the sooner Accounts Retrievable has your account and begins the debt collection process, the more likely we are to be successful. There are many reasons to send a claim to our debt collection agency and here are a few:
– If you have few employees, it does not make sense to give that much of your workforce energy to collecting your debts. Your employees will be having to make collection calls while the everyday business is on the back burner. Your employees also may not have the proper training to collect debts successfully. If you hire a debt collection agency such as Accounts Retrievable, our knowledgeable staff will be able to collect your debts while you are resuming regular business practices.
– Sometimes past due accounts are too complicated for your credit department to collect. A collection agency’s services may be what you need to collect those tricky debts. Debtors know how to avoid payments and the debt collection specialists at ARS have the knowledge, tools, and experience to get the job done.
– The longer a bill goes unpaid, the less likely it will be that you collect in the future. You will likely see a larger return when you hire a debt collection agency.
– In cases where the debtor seems to have disappear, it is definitely beneficial to hire a debt collection agency such as Accounts Retrievable. Our trained skip tracers and other resources are available to track down the missing debtor. There are many other factors when looking to hire a debt collection agency and sending your claims to collections. The longer you wait to hire Accounts Retrievable, the less likely you will be able to successfully collect your debt. It is important to hire a collections agency as quickly as possible to ensure you get paid your past due payments.
The difficulty in collecting on a judgment comes when the debtor is being stubborn in hopes you will give up. The prospect of judgment enforcement and collection in New York can be difficult and expensive to pursue. There are options available to a New York creditor who needs judgment collection assistance. Utilizing Accounts Retrievable’s team of judgment collections experts is your best chance of judgment collection in New York.
Debtors may not have the money, may not make paying you a priority, or they may believe that the courts are wrong and they shouldn’t have to pay. Accounts Retrievable’s talented network of attorneys and debt collections specialists will find out the exact reasons why the debtor refuses to pay. From there, they can utilize negotiation tactics to help move the debtor along to start payments.
With more stubborn debtors, we put to use more involuntary methods. It is your right by law to be able to garnish wages and put liens on property and assets. At this point, most debtors who believe they shouldn’t have to pay will pay just to stop this process.
The responsibility of judgment collection in New York falls on you, the creditor. However most people have no idea where to start after they win a judgment. When you call ARS, you will receive all the help and information you need to collect a judgment.
For most people in New York, Judgment Collections is a relatively foreign process. Once you are awarded a judgment, it is then your responsibility to enforce the judgment and collect on it. Accounts Retrievable is a national network of leading collections attorneys who are experts in all phases of the collections cycle.
What is a Judgment?
When you win a money judgment from court, you will get a copy of the Court’s judgment. This will state the amount of money the losing party is to pay you. The losing party is called the judgment debtor and you are the judgment creditor.
How do I collect a judgment?
Often times the judgment debtor does not pay, which leads you to needing the services of a debt collection agency who offers judgment collections and other judgment recovery services. Creditors find professional assistance necessary when they are looking to recover a judgment. This is because there are complex procedures and extensive paperwork.
Accounts Retrievable is a national and international debt collection agency that will enforce and collect your judgments. Regardless of the amount of the claim, each client will receive the highest quality collection effort.
