Collection of money owed to you through the various remedies available at law. It is often frustrating to know that someone owes you money, but has elected to leave that debt unpaid. We can help you get what belongs to you. Some of the steps of a typical legal collection are stated below to give you a better sense of what is involved with a collection action against a debtor.
Initially, the creditor obtains a judgment against the debtor.
The next step is to attempt to collect on said judgment by “attaching” the debtor’s assets or income. Different ways of collecting on a judgment include a writ of garnishment on the debtor’s income/compensation/bank account(s), a lien on real property, or a debtor examination to determine what the debtor owns.
A writ of garnishment allows the creditor to attach the debtor’s wages/compensation. Essentially, if a garnishment is executed properly, monies are paid from the debtor’s employer to the judgment creditor. A debtor’s bank account(s) can also be garnished, if the proper paperwork is filed with the Court and served on the appropriate financial institution.
A lien on real property will prohibit the debtor from refinancing or selling his/her real property without having to pay the judgment and all interest incurred first. In order to ensure that the lien appears on the title for the real property, the judgment needs to be properly recorded in the County in which the real property is located. The lien can be recorded in more than one county if the debtor has real property in more than one county.
A debtor examination allows the creditor to question the debtor at the Courthouse, with assistance from the Court if necessary, to determine the debtor’s assets that may be subject to attachment. If the debtor has on his/her person anything of value, it can be requested that this item be placed with the Court for the purpose of (possibly) satisfying the debt.