Winning a civil judgment can be of little consolation if you never end up collecting it. The fact is that failing to collect is more common than most people think. By and large, the majority of judgments entered in U.S. courts never get collected. But there is a bright spot: judgment collection agencies that specialize in tracking down debtors and their assets.
Judgment collectors are specialized collection agencies that focus all their energies and resources on judgments. They are experts in all things related to civil judgments. They succeed where judgment creditors fail. Guess what? That is no coincidence.
Debtors Resist Paying Up
We generally accept the idea that judgment debtors with stable financial situations would rather pay up than face the uncomfortable consequences of collection. Such thinking is debatable given that so many judgments go uncollected. What seems more likely is that the vast majority of debtors resist paying up. There could be any number of reasons for this:
- Some truly do not have the resources or prospects
- Some are willing to pay but are unwilling to make the extra effort to do so
- Some believe their judgments are flawed; they will not pay up no matter what
- Some consider it a game to be won; it’s cat-and-mouse between them and their creditors.
All four justifications for not paying up can be dealt with in an appropriate manner. Professional judgment collectors know how to address each type of scenario to achieve the best possible results. They have dealt with enough debtors to know what makes them tick.
Knowledge, Tools, and Resources
Judgment Collectors, a judgments-only debt collection agency based in Salt Lake City, says the bigger issue for creditors is a lack of knowledge, tools, and resources. A lot goes into successfully collecting outstanding judgments. A creditor that doesn’t have what it takes is likely to fail.
Consider the following:
- Knowledge – Successful collection requires a knowledge of how debtors work. It requires a working knowledge of the law, human nature, and even technology.
- Tools – The most successful judgment collectors use every tool at their disposal. Tools include public records, social media, skip tracing, garnishment, and property seizure.
- Resources – Tracking down debtors and uncovering their assets requires an investment of both time and money. Without enough resources allocated to collection, a creditor is likely to fail. Judgment collectors tend to have the resources, or they wouldn’t be in business.
It is not possible to say that any one of these three things is more important than the other two. You need all of them, in copious amounts, to successfully collect a judgment from a debtor who is determined to not pay.
Determination Decides the Winner
Judgment collection services have the knowledge, tools, and resources to handle collections. They are often up against debtors who are pretty knowledgeable and skilled themselves. Who is ultimately the winner? More often than not, determination decides who wins and who loses.
As an example, civil judgments have statutes of limitations attached to them. A debtor might know that his creditor only has seven years to collect. He is determined to wait it out. What he doesn’t know is that the collection agency is willing to wait longer – especially because the judgment can be renewed indefinitely. A good judgment collection firm will wear down the debtor until he pays.
Unfortunately, far too many judgment creditors attempt to collect on their own and ultimately fail. But where they fail, judgment collectors tend to succeed. It’s a wonder any judgment creditors would ever attempt to collect in-house. Letting a professional do it just makes the most sense.