Get the answer to your questions about judgment collection services in Jefferson.
If you have questions about judgment collection services in Jefferson, chances are you are dealing with debts that are causing anxiety and concern. Knowing the facts about your situation and what you can expect from the process will help you to put your mind at ease and get you on the right track to successfully handling the collections.
You can use judgment collection services for a variety of judgment types. Let’s take a closer look at the facts, so you can be prepared for what will happen next.
What Happens When the Judgment Is Entered?
To get to the point of facing a judgment for collections, the creditor must go through the process of obtaining the judgment from the court. The court will declare that there is a legal debt the debtor owes. Once the court enters the judgment, the creditor becomes a judgment creditor and the debtor becomes a judgment debtor. A judgment creditor has more techniques for collection available to them than a regular creditor attempting to collect a debt before the court was involved.
For example, the judgment creditor is able to determine the income and assets the debtor has available, which enables them to enforce the judgment. They have access to this information through:
- Conducting a debtor’s examination in which the creditor questions the debtor about their property and finances. The debtor will provide this information about income, bank accounts, and personal property under penalty of perjury.
- Submitting a list of written questions for the debtor to answer about their financial situation and personal assets
- Requiring a court appearance in which the debtor must appear in court and provide financial documents for review. Not showing up for the court date can result in a warrant for arrest.
What Types of Judgments Are Possible?
The judgment creditor can use a few different methods to proceed with collections:
Wage Garnishment or Attachment
Through this process, the creditor will take part of the debtor’s paycheck to pay back the debt. The wage garnishment is set up through the debtor’s employer and the employer must take a certain percentage per pay period out of the paycheck and forward the specific payment to the creditor.
The amount of the wage garnishment varies from state to state and depends on the type of debt. For example, if the IRS is involved and is collecting back taxes or back child support, debtors can lose 50% of their paychecks to wage garnishment.
As part of a bank setoff, the bank, credit union or other financial institution will take money out of the debtor’s bank account to meet the debt obligations. Social security income and forms of public assistance like disability benefits are typically immune from the setoff. Unless there is a contract involved that states otherwise, bank setoffs are not applicable for late or missed credit card payments.
Lien on Property
A lien is a public record and legal notice that informs parties interested in a property that the owner owes money to a creditor. If the debtor wants to sell the property, he or she must take steps to clear the title by removing the lien—which is only done through paying off the debt.
If you are looking for judgment collection services to help you with any type of judgment in Jefferson, it’s in your best interest to work with a qualified legal team. Connect with Wilbanks Law Firm, P.C. today for your complimentary consultation by reaching out to us online or calling 706-510-0000.