Have you recently won a monetary judgment against a debtor? If so, join the club. Courts all over the country routinely enter judgments against debtors who do not pay their bills. That is the good part. The bad part is that many of those debtors continue to avoid payment at all costs. It is part of the debt collection game.
Judgment creditors in Utah, Idaho, Arizona, and a number of other states look to Judgment Collectors to handle collections on their behalf. Judgment Collectors is based in Salt Lake City and offers services in nearly a dozen states.
The Judgment Collectors team explains one very important fact about monetary judgments: they are obtained against debtors who have not exactly been forthcoming with payment. If they have resisted enough to force you to take them to court, continuing to resist is certainly not out of the question.
Many Ways to Avoid Paying
Sometimes it is not a matter of ‘if’ a judgment debtor is going to avoid payment. Rather, it’s only a question of ‘how’. Debtors have access to multiple strategies that will keep unsuspecting creditors at bay for long periods of time. Creditors really need to be on their toes to keep up with clever debtors. Either that, or they must hire a judgment collection agency.
Here are some of the tactics that judgment debtors employ to avoid payment:
1. Providing Inaccurate Information
Judgment creditors typically ask debtors for key information that will make collection efforts easier. This includes employment information. A debtor smart enough to know that his wages could be garnished might provide false information.
He might lie about his employer, give the wrong company name, or even provide a fake address and telephone number.
Debtors who are afraid that their bank accounts might be garnished could furnish inaccurate bank information or simply choose not to furnish any at all.
Providing a fake address is another way to throw creditors off.
Any information that could potentially make collection efforts easier on creditors is on the table for falsification.
2. Hiding Nonexempt Assets
Debtors always face the risk of asset seizure following a judgment being entered against them. However, creditors cannot just walk up and seize personal property. They need to obtain a Writ of Execution first. That writ must be obtained from the same court that entered the original judgment. Getting a Writ of Execution takes time.
Whether it is 15 or 30 days, it is still time during which a debtor can hide nonexempt assets. For example, he can transfer titles from a property he owns to an extended family member or friend. Now that asset is off the table. If he has savings or investment accounts, he can close them and hide the money elsewhere.
3. Declare Bankruptcy
Believe it or not, some attorneys advise their clients to avoid paying by declaring bankruptcy. The thing about bankruptcy is that it is governed by federal law. Despite states having the freedom to regulate monetary judgments according to their own statutes, there is little they can do about federal bankruptcy law. And because most types of debt can be discharged via bankruptcy, attorneys advise their clients to go that route.
If you have recently been awarded a judgment against a debtor, be prepared to experience at least some amount of avoidance.
You may find yourself feeling like the system is designed to protect debtors instead of upholding the rights of creditors. Whether or not that is true doesn’t change the fact that you are going to have to be diligent about collection efforts if you hope to get paid.
