If there is one thing a judgment collection agency is very good at, it’s investigating. The best agencies put a ton of time and effort into investigation long before they get paid. So what’s the deal? Why is investigation so important? It boils down to a single word: assets.
Courts render judgments in civil cases based on the facts. Judgments are not rendered with consideration to their enforceability. Take your typical money judgment. A court otherwise inclined to rule in favor of the plaintiff will not rule in favor of the defendant simply because the defendant’s financial resources are limited.
As a result, there are plenty of cases in which courts award monetary compensation despite the fact that defendants really don’t have a means to pay. This leaves the winning parties, also known as judgment creditors, in a position of having to extract payment in the best way possible. This is where the judgment collection agency comes in.
Working on Behalf of the Creditor
Judgment Collectors is one such agency based in Salt Lake City, Utah. They say that agencies work on behalf of creditors to pursue payment. They also say that investigation is the key to what they and other agencies do.
What do agencies investigate? Here is just a short sampling:
- Income – Income is garnishable in most states. Collection agencies often find themselves investigating debtor income on the outside chance that the debtor was not truthful during court proceedings.
- Real Estate – Real estate is a very good tool for collecting unpaid judgments. Between judgment liens, writs of execution, and other strategies that target real estate, there are plenty of opportunities to leverage real estate as motivation to pay.
- Other Assets – Real estate is not the only asset judgment creditors can target. Most states allow creditors to go after things like jewelry and collectibles, boats and RVs, aircraft, investments and securities, etc.
The problem for creditors is that debtors often, under the advice of their attorneys, try to hide their assets. A collection agency’s investigative capabilities determine whether debtors succeed in their endeavors.
Some Debtors Pick Up and Leave
Hiding assets is just one of the tricks debtors rely on to avoid paying judgments. Others transfer assets to immediate or extended family members. Still others just pick up and leave. They move to another town, another county, or even an entirely new state. Guess what? They also don’t leave forwarding information.
Judgment Collectors says that agencies employ something known as skip tracing to find the deadbeats. Private detectives and bounty hunters also utilize skip tracing. How does it work? Without giving away the details, investigators use every resource at their disposal to find clues as to where a debtor might be.
There is no shortage of resources in the digital age. Investigators can utilize:
- Arrest and court records.
- Property transaction records.
- Proprietary databases.
- Commercial marketing information.
- Social media posts.
Most people live under the illusion that digital privacy is possible. It’s only possible if you never use digital or electronic devices of any kind. But given the impracticalities of doing so, none of us is truly anonymous. None of us can enjoy true digital privacy. All of us are too easy to find by a skilled skip tracer.
Judgment collection agencies put a ton of effort into investigation because it’s their best hope of a positive resolution. Remember the primary purpose for what they do: collecting. They will do whatever it takes to find a debtor, his assets, and anything else that might help. In the end, that’s what gets results.
