How To Collect Your Small Claims Court Judgment
Small claims court judgments are typically issued due to the default of some type of extension of credit. Most common are demand of rent payments owed, individualized loans or medical procedures performed but not paid for. When this happens, the celebration who granted credit was not compensated so they take the matter to small claims court. In small claims court you are not represented by an attorney and the amounts are typically for less than ,000. The judge then makes a determination if a judgment should be granted. When the judgment is granted, the judgment debtor now has access to legal process to collect and be paid for there judgment.
Why Are So Many Small Claims Court Judgments Unpaid?
Because most people are unfamiliar with this process, they demand the information needed to enforce their judgment. In fact, most people think that they will be compensated on the day the judgment is issued. They are not familiar with the rights of the Judgment Debtor and will seek the advice or service of an attorney. Unfortunately, most attorneys will not take on these types of judgments because the amounts are too small for their services. They typically will charge a percentage of up to 50% of what they collect or an upfront fee. A fee that might not be reimbursed if they are not successful in the collection process. Most people will make the mistake of deciding that it is not worth the time or effort to persue their judgment and just let it go. What they don’t realize is a judgment debtor now has legal tools to help them enforce their judgment and get paid.
What Strategies Can You Take To Collect Your Judgment?
Once you have won your judgment it is very important to contact the Judgment Debtor and let them know you are willing to work with them in repayment before you take further legal action such as remuneration Garnishment, statement levies or property liens. Nine times out of ten, the judgment debtor does not have the capability to pay the judgment off in full. This lays down the foundation that you are going to collect on this judgment one way or another so it is in their ideal interest to negotiate.
Option 1 Repayment Plan
I have been very successful with this first option. I like to offer a 12 month repayment plan with no interest charges. Reason being, depending on your state, you are granted to charge interest from the date the judgment is issued. You can let them know you have the right to charge interest but are willing to abandon if they will sign a promissory note concurring to payoff the judgment in a 12 month period. Let them know that while they are on this option, you will not persue further legal action unless they default.
Option 2 Settlement
use this option when I do not get a response back from the judgment debtor. I will send a certified letter stating that I am willing to settle on this debt for 35% less of the value. I let them know that if I don’t hear from them by a certain date I will be forwarding the judgment to a Judgment Enforcement Specialist and they will be responsible for the full amount PLUS interest and any fees I accrue. This includes remuneration garnishment, statement levies or property liens. What this means to them is, if they don’t concur to some type of voluntary arrangement, I will persue it legally and take it in full.
Option 3 Hire A Specialist
If you are not getting any results, you might want to obtain the services of a Judgment Recovery Specialist. They will request you assign the judgment to them and they will take additional legal action. You will want to find one that only collects if they are successful in the collection of your judgment. They typically will charge anywhere from 25% to 50% of the amount owed.
If you do not want to out source the collection of your judgment and want to collect on your own, you can get most information needed online or through sites such as http://www.operationfreedom.ws/
How To Collect Your Small Claims Court Judgment
My study is Don Sandoval and I have been in the Banking and Finance Industry over 18 years. I specialize in Credit Correction, also known as Credit Repair and Judgment Recovery.
Article from articlesbase.com
www.benlowrey.comcreditors in commerce winston shrout diddley smith gordon hall brandon adams robert menard accepted for value A4v john harris commercial redemption free man on the land ben lowrey bashar john demartini tony robbins zeitgeist fractional reserve modern money mechanics money as debt fiat alex jones prison planet info wars project camelot TPUC Tim Turner Sam Davis Douglas Riddle jerry kane george tran
What can a creditor do to collect money from unsecured debt once a judgement has been issued by the court?
Question by stemwad12954: What can a creditor do to collect money from unsecured debt once a judgement has been issued by the court?
My girl friend can't and will not pay a credit card debt for ,000 and has recieved a summons from a sheriff to appear in court. If she does not appear a judgement will be against her. Can they attach or take any of her assets or money from bank accounts to pay back the loan?
Best answer:
Answer by CatDad
A judgement would allow them to freeze checking accounts and garnish wages. If she has a home they might place a lien on the property
DO NOT be a no-show in court under any circumstances whatsoever. Not showing up is the worst thing she can possibly do. Even if you are frightened….or you’re sick with a 102 degree fever…or if you think that you’d loose, show up anyway! If you don’t, the other side will get a default judgement and they will get this on THEIR terms. Creditors LOVE when you don’t show up in court. They will paraphernalia on all sorts of add-on fees and the amount of the judgment could end up being two or three times the actual amount of the debt. They could freeze her checking account. Even worse…they might be healthy to garnish consequence and if you don’t show up the judge will allow the max. allowable remuneration garnishment…which can be as high as 25% of her wages.
On the court date: Bring complete documentation of your income and living expenses: Pay stubs and duplicates of bills. Even if you loose, you can use this to negotiate much more favorable repayment terms.
==================
Regarding the advise below: no… as long as she shows up in court and tries to negotiate with them they cant garnish her assets or anything.
This is completely incorrect. Showing up in court could help you to negotiate a much lower rate of garnishment…but it can't stop them from getting a garnishment.
Add your own answer in the comments!
Q&A: How soon after default judgement can they garnish wages in CA?
Question by thizzlepr: How soon after default judgement can they garnish consequence in CA?
My husband recieved a request for default judgement yesterday, how soon can they get a remuneration garnishment.
Best answer:
Answer by Scott K
Immediately. After the court allows the judgment.
Add your own answer in the comments!
