Winning a civil court case could result in a judgment that includes a monetary award. A court victory is a cause for celebration, but it also marks the start of what could be a long and arduous collection process. The fact is that winning a judgment isn’t a guarantee that you’ll actually be paid.
Based in Salt Lake City, UT, Judgment Collectors operates in 11 states. Their specialty is collecting judgments. That said, they strongly urge creditors to turn their judgments over to a collection agency right away. Waiting weeks, months, or even years only makes the job harder.
According to Judgment Collectors, here are the top five reasons to turn judgments over to a collection agency:
1. They Know the System
Collecting is rarely as simple as getting a check from the debtor as soon as the court case is concluded. Even when a cooperative debtor agrees to work out a payment plan, there is a time factor involved. There are also legal steps to take. Most creditors do not know any of this. Collection agencies do.
Collection agencies know the system inside and out. They know what is expected from the court system, the debtor’s attorney, and even industry protocol. Their knowledge of the system allows them to navigate it efficiently and smoothly. The same cannot be said for creditors who go into judgment collection virtually blind.
2. They Have the Experience
Navigating the collection system requires more than just knowledge. It also requires experience. Why? Because it is rare to find debtors who willingly cooperate to get their debts paid as quickly as possible. Creditors tend to be uncooperative. Sometimes they do so ignorantly while other times they know exactly what they are doing.
A collection agency has experienced just about every avoidance tactic under the sun. They have experience dealing with courts and attorneys. That experience helps them stay ahead of things instead of falling behind.
3. They Have the Tools
Collection agencies also have the tools necessary to get the job done. They can track down assets. They can find assets that a debtor is trying to hide. They can even employ skip tracing to locate debtors who attempt to avoid paying by moving away. Once again, creditors rarely know about these tools, let alone having access to them.
4. They Have the Time
One of the biggest reasons creditors fail to collect judgments in-house is a lack of time to devote to the job. Needless to say that collection is a time-consuming process. Less cooperative debtors require a greater investment of time. A creditor attempting to collect in-house has limited time because other things require their attention.
A collection agency has all the time in the world. Collection is what they do, so there are no other distractions. Collection agencies can devote all their time and resources to finding debtors and getting them to pay.
5. They Are Highly Motivated
Collection agencies – especially those that work on consignment – are highly motivated to succeed. Judgment Collectors is a perfect example. Working on consignment means they only get paid if they succeed in collecting. That is all the motivation they need to get the job done. They do not want to put in a lot of work only to walk away with nothing.
Creditors are well within their rights to try to collect judgments in-house. But in-house collection is rarely a good idea. Creditors are better off bringing in a collection agency right from the very start. A collection agency is more likely to succeed than the creditor.