Debtor assets are of significant importance to judgment creditors. Assets can be used as leverage to encourage judgment debtors to pay up. But in some cases, debtors are not forthcoming about what they own. They force judgment creditors to dig around; to look under every stone and around every corner.
The experts at Salt Lake City’s Judgment Collectors, a collection agency that assists with judgment collection in nearly a dozen states, explain that debtor assets give creditors the most leverage. Assets include things like real estate, vehicles and boats, securities, and even jewelry and collectibles.
The big question is how creditors learn about such assets. In the immortal words of so many film characters, creditors can do it the easy way or the hard way.
The Easy Way: Volunteer the Information
The easiest way for judgment creditors to learn about debtor assets is for debtors to volunteer the information. It is also the best choice for both parties. Immediately following the conclusion of civil litigation, the judgment debtor furnishes complete and accurate information about all his assets. This can be accomplished through a separate court hearing or between the two parties’ attorneys.
Volunteering the information demonstrates a debtor’s willingness to cooperate. Such cooperation could encourage a judgment creditor to be a bit more lenient and gracious. But failing to cooperate tends to have the opposite effect.
The Hard Way: Everything Else
Failing to volunteer the information leaves a judgment creditor no choice but to launch an independent search. Every other tool he might use to uncover assets constitutes doing things the hard way. Unfortunately, the hard way is the way asset discovery is normally done.
Judgment creditors use a variety of tools to locate assets. Those tools include:
- Property Records – Records of property transactions and title transfers are public records. Creditors used to have to go to the county courthouse to see these records, but now everything is online. A quick search of local property records can glean a ton of useful information.
- Credit Reports – Running a credit report can provide clues to certain types of assets, like real estate and vehicles. A credit report can also yield information about a judgment debtor’s bank accounts.
- Court Records – If a judgment debtor has ever been in civil court before, those records can also be accessed. Records pertaining to divorce proceedings, probate, and contract disputes can provide valuable information about debtor assets.
- Proprietary Databases – Judgment collection agencies purchase proprietary databases from the same sources through which marketers buy them. Proprietary databases can be a treasure trove of valuable information.
- Social Media – Believe it or not, the carelessness with which most people approach social media makes sites like Facebook and X quite valuable in the search for personal assets. People love to show their stuff online, and judgment collectors love to look.
Collection agencies have access to other tools that will not be revealed here. There is no point in giving away all their secrets. Let’s just say that a skilled searcher has plenty of avenues to pursue in the search for debtor assets.
That’s How Creditors Win
So many money judgments never get collected. I can only assume it’s because judgment creditors don’t know how to go about leveraging debtor assets to their own advantage. But that’s how creditors win.
I would not skip paying a judgment if one were entered against me. I know how easy it is to discover debtor assets if one knows where and how to look. Rather than risking my assets, I would prefer to find a way to pay, even if that meant a monthly payment plan.
