Are you struggling with collecting unpaid judgments after winning a lawsuit? Obtaining a judgment is only half the battle. Getting the debtor to repay you is sometimes the most challenging part. Ideally, the defendant would hand over the money right away. But too often, debtors refuse to pay. Here are some of the top four issues faced when trying to collect:
The Debtor Can’t Afford to Pay
Why don’t debtors pay back judgments as soon as possible? Many times, they simply don’t have the money on hand. Depending on the verdict, the debtor could owe a few hundred bucks to over a hundred thousand dollars. For many, that’s not pocket change. Instead of trying to repay, they end up ignoring the judgment entirely.
Attorneys deal with this scenario all the time when collecting unpaid judgments. And in most cases, they can deduct owed money from the debtor’s paycheck with wage garnishment. The state of Georgia caps the allowed garnished amount to 25% of the person’s weekly disposable income. And even with the garnishment in place, collecting the entire amount owed could take years.
The Debtor Files to Vacate the Judgment
It’s not uncommon for the debtor to object to the judge’s decision. They may disagree with the owed amount or may even claim that you sued them in error. Instead of paying the judgment, the defendant might file to vacate or annul it.
A debt collection attorney will help you navigate through this situation. Gathering more facts and evidence in your favor will ensure the judgment holds up in a new trial. The debtor might also agree to a voluntary repayment plan or lump sum settlement to avoid another day in court.
The Debtor Refuses to Pay Out of Spite
Some debtors feel personally attacked when the court places a judgment against them. Perhaps they have a personal vendetta against the claimant or just disagree with the decision. Instead of doing the right thing and paying the amount owed, they ignore the judgment entirely.
Of course, this is illegal. However, many claimants don’t know how to proceed when collecting unpaid judgments and walk away empty-handed. Instead of letting the debtor get away with this behavior, it’s better to let an attorney handle the dirty work. A judgment serves as a lien against all the debtor’s property. Your attorney might make levy demands and use assets, like accounts receivables and bank accounts, to enforce a garnishment statute.
Help Collecting Unpaid Judgments
Claimants expect debtors to repay judgments quickly after a ruling. However, it’s not always that easy. Debtors use shady tactics to put off making payments or avoid the judgment altogether. The legal team at Howe & Associates wants to help you get paid. We represent clients seeking debt collection in Georgia. With over 30 years of experience, you can count on us for swift judgment enforcement.
Dealing with a debtor who refuses to pay? Schedule a free consultation with Howe & Associates to get help collecting unpaid judgments.
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Few things are more frustrating than dealing with a client who won’t pay for products or services that you provided. And while you may want to head over to their home or office with a sock full of pennies, it’s best that you take a legal and calculated approach. Understanding Small Business Debt Collection At …
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The only items that we would challenge in this article, is the bullet about “Hiring a debt collection agency”. Agencies are good for certain types of debt collection, but often are not great for small businesses debt collection. That is especially true for business to business debt. Hiring an experienced Debt Collection Attorney saves you pain and stress and often times results in a higher recovery. See some of our testimonial videos for proof of this.
See our article at this link on Should I Use A Debt Collection Agency or Law Firm
Demand letters are the first step to collecting a bad business debt in the state of Georgia. Richard, a managing partner of Howe & Associates has a system that they have refined from over 30 years experience to collecting debts with demand letters.
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Whenever we get a new debt collection claim we always set up the claim in our system and conduct a thorough investigation. We will then send a series of demand letters.
We will always send an initial demand letter to the debtor to let them know that we’ve been retained by the client. We will also send an acknowledgment letter. In those investigations we will determine assets that we will be able to attach with our judgment.
The series of demand letters that we send really depends on each case. We make demand calls. We want to talk to the debtor and find out exactly what their intention is with regard to payment.
We will also send a series of demand letters which will help us determine a lot of things. This could include the debtors interest in wanting to amicably take care of the debt or help us determine they are going to avoid it and we should just go on ahead and file suit on it.
The demand letter process in the collection overall process is very important component in debt collection.