Wednesday, April 8, 2015

Collecting a Judgment

Every business that chooses to extend credit is eventually going to come across a customer who doesn’t pay. That’s just a fact of the business world. Too many customers who don’t pay, however, can cut into profits and even cause a business to go under. For that reason, most businesses make efforts to recover the money owed them.                                    

Typically, companies will use the standard collection agency methods to try and get through to customers. They will make phone calls, send letters and emails, and sometimes even try to frighten the person into paying. Unfortunately, though, those methods don’t always work.

When all other collection efforts have been exhausted, it sometimes becomes necessary for a business to take a non-paying customer to court. If the courtroom case is successful for the business, then a judgment will be issued. The judgment orders the customer to pay what is owed and lists the exact amount owed.

Unfortunately, however, getting a judgment is no guarantee that the money owed will actually be received. Sometimes, even with a judgment, debtors just don’t pay up. When that happens, it’s up to the business to collect its judgment.

You may have to go back to court and get permission to have the money taken from the customer’s bank account or to have his or her wages garnished. Other assets may also be accessible. However, the rules on how money can be collected vary from state to state, so it’s wise to talk with an attorney or a professional collection agency about your options.

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