A collection agency specializing in civil judgments is one that goes after a particular type of debt general collection agencies may not be equipped to handle. When judgments are involved, collection practices are different. Agencies utilize different procedures, different legal tools, and so forth. They typically want to get started as early as possible.
A judgment collection agency will usually take any case they believe they can successfully settle. But truth be told, they prefer to get judgments right away. They are happiest when clients contact them in the days immediately following a successful court case. They are not as happy when clients wait months, or even years, before contacting them.
Older Debt Is Harder to Collect
The reality of all types of debt collection is that older are harder to collect. It is a simple matter of avoidance. The longer a debtor can avoid paying, the easier it is to continue avoiding. Experienced deadbeats know this. They are more than willing to employ every possible delay tactic in hopes that their creditors will give up and walk away.
When a collection agency gets a judgment immediately, it can start turning the screws from the get-go. They can counteract a debtor’s avoidance tactic with collection tactics of their own. In most cases, getting started on a judgment right away gives the collection agency the advantage. As time goes on, the debtor gradually gains the advantage.
Time Creates More Opportunity
Judgment Collectors, a specialized judgment collection agency serving 11 states, says that time creates more opportunity for debtors to pursue avoidance strategies. Just within the first 30-60 days, a debtor can slow-walk the process of furnishing income, residency, and asset information. During that time, he can work on other strategies to keep a creditor at bay.
Over longer periods of time, a debtor can hide assets by transferring ownership to a family member or a company in which he is the principal owner. He can sell assets and hide the cash receipts.
If a debtor has financial resources tied up in bank accounts and securities, they can be liquidated and converted into other forms that are harder to find. If all else fails, the assets can be liquidated and the cash stored in a safe at home. Though that is not likely, it’s always possible.
Insufficient Resources and Knowledge
When judgment creditors delay contacting collection agencies, it is generally because they want to attempt to collect on their own. That’s all well and good, but creditors rarely have the resources and knowledge to go after debtors full force.
A typical creditor doesn’t know how to find out about a debtor’s bank accounts. The creditor doesn’t know how to go about discovering assets. In short, the creditor’s lack of knowledge and resources gives a debtor plenty of opportunity to pursue avoidance tactics. By the time the creditor realizes success is fleeting, the debtor already has a substantial head start.
Delaying Reduces the Chances of Success
We can wrap all of this up by acknowledging that delaying turning a judgment over to a collection agency reduces the chances of success. The longer a creditor waits, the harder is for a collection agency to do what it does. And even if the agency does succeed, the passage of enough time virtually guarantees the agency will have to settle for substantially less.
Getting judgments immediately puts the ball in the collection agency’s court. It allows an agency to go after the debtor full force from the onset. That is the key test success. That’s why collection agencies don’t want creditors to wait.
