If you’ve just won a court judgment against a client who owes you money, you may now be wondering exactly how you actually get the money. Once a court issues a judgment, that’s where its role essentially ends. The court does not get involved in the collection effort. That falls to you.
One thing you must be aware of, though, is statistics indicate that roughly 75% of judgments are never collected. However, even though this means it might be more challenging to collect on the judgment, it isn’t impossible. There are options available to you, particularly if you hire a collections attorney who has expertise in judgment enforcement.
Liens on real property
A lien is essentially a legal claim on property. By filing a memorandum in the office of the recorder in the county where your debtor’s real property is located, you can secure a lien such that when the property is sold, you get a portion of the proceeds. Such liens typically last seven years, and can be renewed in seven year increments for up to twenty years. It’s important to also note that judgment liens also apply to any property the debtor acquires during the life of the lien, not just property owned when the judgment was awarded.
Bank accounts and other cash sources
Your collections attorney can work to uncover the existence of bank accounts or other sources of cash that your debtor has. In such cases, a court can provide a Writ of Execution which can then be served to the debtor’s bank, for example, so that you can retrieve money owed. In some cases a court will permit law enforcement officers to go to a debtor’s place of business and seize cash to satisfy a Writ of Execution.
The Jayaram Law Group routinely and successfully assists its clients in their business-to-business (b2b) collection needs. We take pride in obtaining payment on accounts receivables without fracturing critical business relationships or engaging in time-consuming and costly litigation efforts.
If you need business debt collection services conducted in a professional manner, contact our B2B (business-to-business) debt collection law firm by calling 312.454.2859 or visiting www.jayaramlaw.com.