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Category: Judgments

Pre-judgment claims are also known as pre-judgment writs of attachment. These claims allow creditors to place what’s known as a security interest on the personal property of a debtor. Basically, this is a court order to “attach” or seize an asset.  The most common use of pre-judgment claims in the United States is to protect the creditor.

Secure Property at the Beginning of the Court Process

A significant concern when collecting debt is whether or not the debtor has the assets available to pay a money judgment. Another consideration is whether or not these funds will be available once the court orders a decision for the creditor.   When beginning a trial, a big fear is that the debtor may sell off assets such as real estate, vehicles, and other property.  In addition to selling off property, the debtor may empty bank accounts. They do this to make it appear they have fewer assets available.

This writ of attachment allows the creditor to secure property at the beginning of a lengthy court proceeding. This ensures that the debtor cannot misrepresent their ability to repay. In this way, the creditor knows that if the court rules in their favor, the debtor has the assets available to pay the creditor.

Many court cases take several months to resolve. Some last up to 12 months or more after filing the lawsuit.  This type of security interest or “attachment” gives the debtor a significant incentive to resolve their debts and secure the creditor’s interest.   Note that courts do not always grant pre-judgments. The ability to obtain a pre-judgment depends on several factors. Some factors include the nature of the legal claim and your individual state’s laws. A pre-judgment is provisional and must be obtained before an actual judgment is made and before the trial begins.

How to File Pre-Judgment Claims

To get pre-judgment claims, you must file a claim stating a breach of contract.  The claim should show that someone (the debtor) did not repay as they promised (contracted).  In this claim, you will have to prove that a breach of contract occurred.

Once the court grants pre-judgment claims, the court issues an order to a local law enforcement officer, sheriff, or agency. This party will seize property that the courts can use to satisfy the debt.  In the United States, a creditor representative will attend the officer. He will assist with identifying property to be seized. In addition, they will answer questions the debtor may have.

Local law enforcement agencies generally hold any seized property in trust.  When this occurs, the courts expect the creditor to provide up-front reimbursement for storing the property.  Sometimes, the court will name the creditor as the custodian rather than allowing local law enforcement to store the seized property.  In these cases, the creditor must prove they have secured adequate, pre-paid storage of the assets.

Let Howe & Associates Help You Collect

If your lawyer is considering pre-judgment claims, they likely want to ensure that you will receive assets the court awards.  This can be a very technical and procedural motion. Your lawyer can help keep you informed on the status and the nature of the documents filed throughout the case. Get help from one of our professional attorneys at Howe & Associates when going through the process of pre-judgment claims.

Unfortunately, winning a judgment in civil or small claims court on a debt owed does not mean that the defendant will automatically and immediately pay the funds due. In fact, despite the good news of winning a collection case, a plaintiff has only won “half the battle.” The actual financial recovery phase still needs to occur. This is especially true if a defendant who owes the judgment doesn’t want to be cooperative. Read on to learn more about the post-judgment claim process.

The Specifics of Post-Judgment Claim Collections

A  post-judgment claim involves legally and correctly exercising a number of tools to initiate payment recoveries. These tools, when put into effect, involve more familiar terms such as garnishments, liens, seizures, and property liquidations. However, to get the desired post-judgment claim recovery, the legal process often requires various forms of filings and paperwork. Ergo the term post-judgment claim.

In practice, liens, garnishments on paychecks, and property seizures have to be documented in court. This protects any agency or institution involved in the recovery from making a mistake with a seizure. For example, a bank could find itself in deep trouble if it made a mistake turning over one party’s bank balance to another. As a result, bank managers want to be sure that a post-claim judgment order actually applies to their business without an exception to the matter. This first requires a winning plaintiff to find and identify a defendant’s property. When the plaintiff obtains that information, then the plaintiff can initiate the action to force the defendant’s title on the property to be eliminated. Then the institution holding the asset can transfer the property to the plaintiff.

The Cost of Errors and Mistakes

Post-judgment claim filings can be extremely technical with local court rules. It is easy to make mistakes in the filing process. And those mistakes often allow a defendant to delay payments. Sometimes, the mistakes cause a plaintiff to have to refile a post-judgment claim all over again. These basic technicalities can include a defendant finding out early that a filing is being made. This gives a defendant time to move assets before they can be seized. In addition, finding errors in filing information invalidates the claim against the defendant, and not providing correct notice per civil procedure rules also creates a problem.

The best way to avoid post-judgment filing mistakes and to ensure post-judgment claims are processed efficiently is for the collecting party to  use an experienced collections attorney. An experienced attorney offers more than just basic knowledge of the legal collection process. He can also offer a way to navigate the differences of local court rules, which can vary quite a bit.

Post-Judgment Claim in Summary

An effective post-judgment claim and related filings make a legal recovery complete. A legal recovery brings back lost funds and allows a plaintiff to get on with business and life. As a result, using a qualified attorney in the effort only makes good business sense, especially when the financial recoveries involved are significant and sizable. Contact Howe & Associates today to get started on your debt collection.