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.
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.
Accounts Retrievable – Collecting Judgments In New York
At Accounts Retrievable we specialize in Judgment Collections in the state of New York. We are entitled to certain remedies under law to collect your judgment for you. We know the right tactics to collect Judgments, especially in the state of New York. We do charge fees to collect on your judgment, which is listed below:
JUDGMENT COLLECTION DIVISION
RATES: Contingent Upon Collection
33% of collections, net, after execution costs. Such costs include, and may not be limited to, Sheriff Fees, Marshal Fees, Attorney Fees, and Court Costs. You should note that if the Judgment Debtor moves to another state, and you desire to domesticate your Judgment in the “new” state, you must advance the local Court Costs to domesticate your Judgment.
CCP Section 695.010(a) provides that all property owned by the debtor, subject to certain exceptions, is subject to enforcement of a judgment. Community property owned by a debtor’s spouse is included within the “all property owned by the debtor.”
Additional costs and interest may be added to the judgment. As money comes in from the debtor to the creditor, it is first applied to satisfy any additional costs and interest, and only then, the principal balance of the judgment. Interest accrues only on the original amount of the judgment unless judgments are periodically re-recorded, in which case interest compounds. Judgments continue to exist for 10 years from the date of the entry of the judgment.
Judgments may be renewed for additional terms of 10 years. Judgments are usually collected through the lien mechanism. The creditor will place a lien on the debtor’s real and personal property (by recording the judgment with the county recorder’s office or entering it with the Secretary of State), and the lien will be satisfied when the property is sold by the debtor or foreclosed upon by the creditor. Once the underlying judgment is satisfied, the lien must be released.
Accounts Retrievable Systems – Information About Judgment Collection
Accounts Retrievable is your global resource for international collections. We accept a broad variety of accounts such as Judgments, Commercial & Consumer accounts and we specialize in collecting Unpaid Child Support and Unpaid Alimony (Spousal Maintenance). The minimum account we will collect on is $1,500. There are not upfront fees, all of our fees are contingent upon successful collection of your accounts. All of our fees are contingent, we only get paid if you do.
If you are looking for an easy way to place your account or accounts, we have an easy placement system on our website. Whether you have one account to place or a large volume you can place them through our website, e-mail or by fax. We have made our placement process completely customizable so you can place you account in the easiest manner for you.
Determining the best time to place your account may vary due to your specific situation. Although there are no set parameters, we suggest that a good guideline would be 90 to 150 days from the date of the last payment or invoice. There are some situations in which you should place your account sooner such as loss of contact, broken promises, mail returns or lack of response. The sooner you place an account with us, the better chance that we have to recover your money.
Information that we need to start the collection process are the name, address, contact name, telephone and fax number and a statement from you showing the outstanding balance and invoice(s) information. Judgment collections require a copy of the Judgment or transcript. All additional backup documentation can be provided at the time of placement or at a later date. Backup documentation includes invoice copies, contracts, etc.
Accounts Retrievable Systems – Use A Collection Agency
Accounts Retrievable has delivered professional and highly effective results for over 30 years. We serve the collection needs of clients on a worldwide basis. Accounts Retrievable is recognized as a leader in judgment collections, commercial and consumer recovery and we specialize in child support and spousal maintenance (alimony). With our partnership approach, rapid collection and ability to preserve relationships from the cornerstone of our commitment to excellence.
With over three decades of collections experience with both domestic and international accounts, we serve a broad spectrum of industries. Our clients benefit from an array of solutions that are designed to reduce expenses, increase cash flow, improve operational efficiency and maintain positive customer relations. We pride ourselves on our ability to deliver professional, effective and timely results on a worldwide basis.
We strive to remain a leader in the collection industry and are comprised of a strong, cohesive and committed team. We have a consistent track record for successful outcomes and it stems from a forward-thinking corporate mind where personal and professional aspirations thrive and progressive ideas flourish. All of our team members are kept current on all laws and statutes in regards to debt collection. Our employees will go through ongoing education by attending seminars and meetings throughout our affiliations.
Creditors often wonder when they should place an account with a collection agency. Accounts should be placed with a collection agency if an account is 90 days delinquent and you have received no response from the customer.
Accounts Retrievable Systems – Should You Hire A Collection Agency?
We serve a broad spectrum of clients such as credit unions, retailers, law firms, wholesalers, banks, universities and even mail order companies. ARS Collection Agency will receive claims from all over the United States against debtors all throughout the country. Their company is staffed with only skilled professionals with experience in all aspects of debt collection.
It is important to keep up with any overdue accounts because over time, your chances of collecting the money owed decreases drastically.
We collect on a variety of different accounts. We accept judgments, commercial accounts, unpaid child support, spousal maintenance, consumer accounts, auto loans, personal loans, student loads and landlord/tenant matters. The minimum debt we will collect on is $1,500. There are no upfront charges or fees, our fees are contingent upon successful collection of your accounts.
Accounts Retrievable Systems – Having Trouble With Debt Collection?
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! We’ve provided below a summary of the collection fees that we do charge if we are successful upon collecting your account.
CHILD SUPPORT / SPOUSAL MAINTENANCE COLLECTION DIVISION
RATES: Contingent Upon Collection
33% of collections, net, after execution costs. Such costs include, and may not be limited to, Sheriff Fees, Marshal Fees, Attorney Fees, and Court Costs.
JUDGMENT COLLECTION DIVISION
RATES: Contingent Upon Collection
33% of collections, net, after execution costs. Such costs include, and may not be limited to, Sheriff Fees, Marshal Fees, Attorney Fees, and Court Costs. You should note that if the Judgment Debtor moves to another state, and you desire to domesticate your Judgment in the “new” state, you must advance the local Court Costs to domesticate your Judgment.
INTERNATIONAL CLAIMS
39% of collections
Foreign attorneys may require retainers or handling fees as is customary in their country and such rates will be quoted in our lawsuit requirement letter prior to authorization. ARS is fully compliant and adheres to all Federal and State Collection practices regulations. We follow high standards for compliance, confidentiality, and privacy requirements. 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 strives to remain a leader in the industry.
Accounts Retrievable – Hiring The Right Collection Agency For You
The Accounts Retrievable System is a well established national collection agency that serves the collection needs of respected clients. The client base of ARS includes wholesalers, retailers, credit unions, manufacturers, banks, law firms, universities and mail order companies. We receive claims from creditors all over the United States against debtors all throughout the country. Our skilled professional expert debt collectors are experienced in all aspects of debt recovery.
Every collection agency will charge you a fee for recovering money owed to you. Our goal is to provide fast and efficient debt collection services at competitive rates. We work on a contingency fee basis, which is standard for collection agencies. What this means is that if we collect the money owed to you, we will earn a fee from the money we collect. If we do not collect, there is no charge to you for the efforts that we put in to attempt to collect your money. This is why we highly suggest to place any account with us no matter the age of it. It is also highly recommended that you place an account with us as soon as possible but even if it has aged a bit you can still place it with us and we will put in every effort possible to collect.
Here are a basic list of the fees we charge for collection on different accounts:
COMMERCIAL COLLECTION DIVISION
RATES: Contingent Upon Collection
Before Litigation:
29% of collections
After Litigation:
When suit is recommended, client’s authorization will be required. Should suit be authorized, creditor will be responsible for advanced court costs. Court Costs vary from state to state and these rates will be quoted in our lawsuit requirement letter prior to authorization.
39% of collections
Large claims (over $500,000) – rates negotiable on an individual basis
CONSUMER (RETAIL) COLLECTION DIVISION
RATES: Contingent Upon Collection
Before Litigation:
34% of collections
After Litigation:
When suit is recommended, client’s authorization will be required. Should suit be authorized, creditor will be responsible for advanced court costs. Court Costs vary from state to state and these rates will be quoted in our lawsuit requirement letter prior to authorization.
44% of collections
JUDGMENT COLLECTION DIVISION
RATES: Contingent Upon Collection
33% of collections, net, after execution costs. Such costs include, and may not be limited to, Sheriff Fees, Marshal Fees, Attorney Fees, and Court Costs. You should note that if the Judgment Debtor moves to another state, and you desire to domesticate your Judgment in the “new” state, you must advance the local Court Costs to domesticate your Judgment.
CHILD SUPPORT / SPOUSAL MAINTENANCE COLLECTION DIVISION
RATES: Contingent Upon Collection
33% of collections, net, after execution costs. Such costs include, and may not be limited to, Sheriff Fees, Marshal Fees, Attorney Fees, and Court Costs.