Judgment Recovery Services

The collecting of debts happens to millions of people every day in a variety of different ways. Judgment recovery services are a business that allows a company to attempt to collect a debt from an individual or a company. There are many ways that a debt can legally be attempted to be collected.


1. Garnishment of Wages

A garnishment is the act of collecting on a monetary judgment against a defendant by ordering their employer to pay the money directly to the plaintiff instead of to the defendant themselves. Wage garnishment is the most common form of garnishment, and is typically collected in cases of owed child support, taxes and unpaid court costs. The limit in the United States that the courts can take out is up to 25 percent at a time. This will be taken out of what is called disposable income that the defendant earns.

When a person does not pay their previously court-ordered child support or other obligation, a garnishment of earnings or wages may be pursued. There are a few steps that go into obtaining funds by garnishment. Before a garnishment begins, all information is checked about the judgment debtor's place of employment or status within the company they work in or for. Some may claim that they are exempt from a garnishment-in this case; the collector must verify this information with the proper authorities. Garnishes will then be taken out by the employer as part of the payroll process, simply put; the money is taken from the debtor's paycheck before they can cash it.

It may be relatively easy for a court to order the garnishment of a person's wages and assets. There are only a few requirements that have to be satisfied before the IRS will allow a garnishment to take place.

2. Debt Collection Agencies

A debt collection agency is a company that goes after payments that are owed by either an individual or a business. In this business, the majority of collection agencies operate individually for the creditors, collecting debts in return for a fee or a percentage of the collection. There are also agencies that are referred to as debt buyers that may buy debts from creditors at a very low price, and then try to collect them at their full price. Whatever the difference is between the amount that is collected and the whole value of the debt can than be written off the records as a loss.

Many debt collectors have bad reputations as being threatening and harassing. There are certain laws, however, that prohibit practices that are abusive towards customers. These laws are typically governed through the Fair Debt Collection Act and can result in criminal action being taken if they are not followed. A customer may also dispute the debt they are being questioned on, and the collection agency must make a note of this dispute in their records. Debt collection agencies typically do their business by phone calls and through postal mail.

3. Assets that May be Legally Seized

Once a judgment recovery is finalized, there are different items of value that may be legally seized. Bank accounts are not only easy to collect judgments from, they can also be taken fast. Real estate is another item that may be easy to obtain in a judgment recovery. The way to do this is to have a lien filed against a property that is owned by a debtor, as when they sell or refinance it, the lien holder will receive payment on the claim for it. Other assets that may be seized are any security deposits that a debtor may have, such as a security deposit with an apartment company for living arrangements. This may be levied to enforce the collection.

In some states, a second car may be repossessed if a judgment debtor happens to own more than one vehicle. Business income can be collected if a debtor has a business. A sheriff may go into the company at close and physically take the money in an attempt to settle a debt. Tax refunds are a big asset that can be taken if a judgment needs to be satisfied. Garnishment can occur in both state and federal tax refunds.

There are many assets that can be taken in judgment recovery cases. The best way to avoid this is to settle your debts as quickly as possible.

4. Judgment Recovery through Skip Tracing

Another process used in judgment recovery services is called skip tracing. Skip tracing is most commonly used when a person goes missing for whatever reason. Skip tracing companies use as many resources as possible to find debtors, locate current phone numbers, where the debtor works, any properties owned and other assets the person may have. Many collections would not be possible without the use of skip tracing. The most common ways to find a person are first through telephone records and motor vehicle records.

There may be many reasons that a person disappears. Mental illness, abusive situations and the owing of debts are three of the reasons a skip trace may be necessary. Skip tracing uses more sophisticated ways to locate a person who has skipped out on a bad debt. Computer records are the most common ways nowadays to search for a person when trying to get a judgment recovery. Checking into social security, voter registration records, traffic tickets and violations and marriage certificates are some of the better ways to find a person who owes money or assets. More and more personal information has become available as the years go by. Skip tracing has become more successful as technology has seen greater advancements.

5. What is Litigation?

Litigation has to do with the conduction of a lawsuit. A lawsuit is defined as a civil action that is brought before a court. The plaintiff in a court case is the one seeking a legal remedy to a situation. Litigation is also known as a hold order, or as a preservation order. A litigation hold stipulates that a company keeps all the data that may in the future be needed for legalities or court cases. Prior to litigation, this data will be available for the discovery process of a case. This also prevents the company from spoliation, which is mutilation of evidence or destruction of evidence that may be important to the defense. Who may issue a litigation hold letter? A lawyer may issue one or a company may issue one within their company.

A litigation may involve anything from two individuals, or for a dispute that is between an individual and a company. It may also be between a person and a government agency. Another judgment can be applied called a declaratory judgment, which can be used to prevent legal problems in the future.

Simply put, litigation is a dispute or problem that may end up in the court system or in a law suit. Any dispute that one thinks may end up this way should be talked over with a professional attorney.

6. Class Action Lawsuits

The definition of a class action lawsuit is a lawsuit that is brought by either one person, but more typically a few people who are suing on behalf of large group of people. Federal or state courts may hold class action suits. A recent federal law was enacted in 2005, called the Class Action Fairness Act, which makes it better for defendants to institute class action lawsuits to federal courts than from state courts. The reason for class action lawsuits is if too many people have been affected by a problem for each of them to file a claim separately.
There are many examples of a typical class action suit of today. If a product that has been on the market and used by a large number of people turns out to be hazardous, or has caused dire side effects, a class action suit may be formed against the company. Examples of class action suits that resulted in success are tobacco lawsuits, breast implant suits, and prescription drug suits. A class action suit may be held in employment cases-for example, violations in mass of wage or hour laws. They may also be held for contract violations.

7. Chances of a Lawsuit through Judgment Recovery

Debts that are still being taken care of by the original creditor are not eligible to be used by a third-party collection agency for a lawsuit. But there are reasons that an agency may recommend suing the debtor. The balance may be big or the debtor resistant, or there may be reason to believe that there are large assets that are at stake, as well as vulnerable. Specific creditors have different reasoning for their decision to sue, such as the amount of the debt. It may seem like an agency is no good at collecting debts if they keep sending too many accounts back. It is also less expensive to keep sending out collection letters and making phone calls to try and collect a judgment recovery.

Agencies that buy debts do have the ability to sue, although by the time it gets to a collection agency the debt is usually pretty old. Lawsuits can be taken out against debtors, although the majority of collection attempts do not come to this. Reasons for a judgment recovery to go to court are if the debt owed is quite large and still recent. If the debtor also has a lot of assets and income, they may be taken to court because they may be easy to obtain the debt from.

8. Judgment Recovery Services in the Job Force

Judgment recovery services are a fast growing field of labor in the United States today. It is becoming a popular Internet job, one that can be utilized from anyone's home computer. Some people may wonder how they can make a living doing judgment recovery services. Simply put, money can be made by getting in touch with judgment holders and offering your services in collecting their judgments for them. If a judgment is assigned to a person, they are legally allowed to use the court system to try and collect on the judgment. Once you can establish a debtor has money or assets to pay his debt off, than a court can help you collect that debt, in the form of marshals, constables, etc., who can garnish wages and assets.

Judgment recovery can be a great business to work at from home. Since it requires research that can be found mostly on the computer, it is a fairly simple process once you get through training. There are many legitimate judgment recovery services on the Internet that offer training courses over the web.

How much money can be made by working for a judgment recovery service can greatly depend on a number of different factors. If you are willing to work hard at it, you may be able to do quite well in judgment recovery.

9. Why Judgment Recovery Service may be right for You

Judgments are good for ten years in most states. They can then be renewed for an additional ten years, if necessary. Judgments can accumulate interest and also increase as the years go on. There are millions of judgments totaling billions of dollars that are so far uncollected. There are many reasons that a judgment winner has yet to collect a debt that was awarded legally. The person may have moved just to avoid paying. They may move to a state where the judgment no longer is valid and legal. Assets may be hidden by the debtor, and in extreme cases, some even choose to change their name to avoid creditors and debt.

Many people give up on trying to collect money they are owed. A judgment recovery service can help get that money, and as a specialist in this field, can earn a person much money. Judgment recovery services will always be needed, as there will always be people and businesses who owe money to someone, somewhere.
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