There are lots of reasons to want to pursue getting a judgment through the justice courts. This can be a long and demanding series of legal procedures. There are claims to make, paperwork to complete, fees to pay, and arguments to be made. The defendant judgment debtor must be served, and that can be difficult, and even then, a positive outcome is not guaranteed. And, if you think the money you are owed will soon come, you might be in for a shock.
Many people, families and businesses seeking a court judgment, have done so because they have either received dodgy services or even no services for payments that have been made. Others are seeking to retrieve loans, credit and money that is owed for a service. Sometimes the reason for seeking a court judgment is from poor workmanship by rogue traders such as builders, plumbers and electricians.
Once you have your judgment, you have to work out how to get your money. The court or government will not help you claim it, it is now up to you to figure out how to get the debtor to pay up. If such a person or company is ruthless enough to cheat others out of their money by doing a bad job or by not paying for services rendered, then they are very unlikely to pay you, just because you have a judgment.
Most people with judgments are not in a financial position where it is easy or convenient to wait for their judgment money to come in. However, often they must wait forever. The choice or time to wait is not up to the judgment creditor, it depends on the assets of the debtor.
Most judgments are never recovered and the creditor's money never returns. When a scammer defrauds them, after losing money in the scam, any attempts to recover the judgment costs more. If the creditor hires a lawyer, they have to spend money to win their lawsuit, then even more money to try to recover their judgment.
Most possessing a judgment cannot afford to pay a lawyer to pursue the defendants for the money owed. You can try to sell your judgment, but buyers only buy judgments for a penny on the dollar, unless the debtors are rich. You can find a contingency recovery solution, but that often involves assigning your judgment. Without a referral from a judgment broker, assigning judgments can be a hassle and risky, with so many judgment enforcers going out of business.
Naturally, it is important for any recovery company to assess the possible value of your judgment, to decide if it is worth pursuing. A judgment broker (a good one is JudgmentBuy) knows a wide range of expert recovery and judgment buying professionals. For free, they match your judgment with recovery experts to maximize the chances of getting some money back. When you want the best chance at recovering your judgment money, start with a judgment broker.
Derek Gray
Scam Investigator
http://scamexpert.blogspot.com
http://www.twothousandmonthly.com
Showing posts with label Judgment Enforcement. Show all posts
Showing posts with label Judgment Enforcement. Show all posts
Thursday, August 16, 2012
Wednesday, January 25, 2012
Avoiding Flakey Enforcers
I am not a lawyer, I am a judgment expert. This article is my opinion, and not legal advice. If you ever need any legal advice, please contact a lawyer.
The two biggest problems with judgments, are that most judgments are not strong; and some judgment enforcers and buyers are not strong. One should be careful when selecting the right recovery option for their particular judgment.
These are some factors that may indicate a strong judgment:
1) Contested, where the debtor showed up in court. Default judgments are weaker, as our legal system gives breaks to default judgment debtors. For example, the laws make default judgments harder to domesticate into some states, and default judgments are subject to motions to vacate.
2) The right size. Judgments less than about $5,000 are not as interesting to judgment enforcers, and interest very few contingency collection lawyers.
3) Have "good" debtors. It is often difficult to recover judgments on old debtors, due to the laws that protect the income and assets of older people.
It is usually difficult to recover judgments on poor debtors, because you cannot squeeze water out of a rock, and bankruptcy protection is cheap to apply for. It is very difficult to recover a judgment on a failed company debtor.
When you pick a judgment enforcer or buyer, the issues are their qualities, and how suited they are to your specific judgment debtor, because only your judgment debtor's assets can repay your judgment.
These are some factors that can show relative strength in a judgment enforcer or buyer (that may be a person, an attorney, or a collection agency):
1) Has an ample cash reserve. If an enforcer runs low on cash, they are less likely to be able to aggressively and persistently recover the judgment debtor's assets. The number one reason judgment enforcers leave the business, is when they run out of money.
2) Has the experience, and/or the attitude to succeed.
3) Knows their limitations, and does not take judgments they cannot enforce. One example is enforcers who are assigned judgments nationwide, without having the resources or contacts to get them enforced.
4) Accountable, reliable, and responsive. Some enforcers (and many small businesses) do not take emails and voice mails seriously enough. Some enforcers go out of business, and then fail to assign judgments back to the original judgment creditors, which is one of the worst business decisions they could make.
5) Not a crook or a flake. Be very careful when "enforcers" want to charge you cash up-front, unless there is a very good reason that you agree to, for example, to domesticate your judgment to another state.
6) How long they have been in business, although nothing and no one lasts forever.
7) What organizations, educational groups, and judgment forums; they are current and/or long term members of.
8) Whether they were referred to you by a judgment broker, who knows the performance of many enforcers and buyers. A judgment broker actively screens out flakes, and does not refer judgment owners to enforcers or buyers who do not respond.
Can you bypass the issue of the strength of an enforcer, by selling your judgment for cash up-front? Not entirely, because there are some flaky and unresponsive buyers out there, and even a few crooks.
The biggest problem with selling your judgment for cash up-front, is you never get very much; usually one to five percent of the face value. You almost always get much more money with a future-pay judgment recovery.
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http://www.JudgmentBuy.com - where Judgments and debts get recovered or purchased by the best - expertly matched for free, to your debtor.
Mark Shapiro, the judgment expert. We pay for leads, and have the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
The two biggest problems with judgments, are that most judgments are not strong; and some judgment enforcers and buyers are not strong. One should be careful when selecting the right recovery option for their particular judgment.
These are some factors that may indicate a strong judgment:
1) Contested, where the debtor showed up in court. Default judgments are weaker, as our legal system gives breaks to default judgment debtors. For example, the laws make default judgments harder to domesticate into some states, and default judgments are subject to motions to vacate.
2) The right size. Judgments less than about $5,000 are not as interesting to judgment enforcers, and interest very few contingency collection lawyers.
3) Have "good" debtors. It is often difficult to recover judgments on old debtors, due to the laws that protect the income and assets of older people.
It is usually difficult to recover judgments on poor debtors, because you cannot squeeze water out of a rock, and bankruptcy protection is cheap to apply for. It is very difficult to recover a judgment on a failed company debtor.
When you pick a judgment enforcer or buyer, the issues are their qualities, and how suited they are to your specific judgment debtor, because only your judgment debtor's assets can repay your judgment.
These are some factors that can show relative strength in a judgment enforcer or buyer (that may be a person, an attorney, or a collection agency):
1) Has an ample cash reserve. If an enforcer runs low on cash, they are less likely to be able to aggressively and persistently recover the judgment debtor's assets. The number one reason judgment enforcers leave the business, is when they run out of money.
2) Has the experience, and/or the attitude to succeed.
3) Knows their limitations, and does not take judgments they cannot enforce. One example is enforcers who are assigned judgments nationwide, without having the resources or contacts to get them enforced.
4) Accountable, reliable, and responsive. Some enforcers (and many small businesses) do not take emails and voice mails seriously enough. Some enforcers go out of business, and then fail to assign judgments back to the original judgment creditors, which is one of the worst business decisions they could make.
5) Not a crook or a flake. Be very careful when "enforcers" want to charge you cash up-front, unless there is a very good reason that you agree to, for example, to domesticate your judgment to another state.
6) How long they have been in business, although nothing and no one lasts forever.
7) What organizations, educational groups, and judgment forums; they are current and/or long term members of.
8) Whether they were referred to you by a judgment broker, who knows the performance of many enforcers and buyers. A judgment broker actively screens out flakes, and does not refer judgment owners to enforcers or buyers who do not respond.
Can you bypass the issue of the strength of an enforcer, by selling your judgment for cash up-front? Not entirely, because there are some flaky and unresponsive buyers out there, and even a few crooks.
The biggest problem with selling your judgment for cash up-front, is you never get very much; usually one to five percent of the face value. You almost always get much more money with a future-pay judgment recovery.
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http://www.JudgmentBuy.com - where Judgments and debts get recovered or purchased by the best - expertly matched for free, to your debtor.
Mark Shapiro, the judgment expert. We pay for leads, and have the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
Tuesday, January 24, 2012
Demand Filing Court Documents
I am not a lawyer, I am a Judgment Broker. This article is my opinion, and not legal advice, based on my experience in California. Laws vary in each state. If you ever need any legal advice or a strategy to use, please contact a lawyer.
What if you have a judgment to recover, either as the original judgment creditor, or the assignee of record, or are representing the original judgment creditor (almost always as their attorney), and the court clerk will not stamp and file your motion, or some other court document?
What to do when a court clerk will not accept, stamp, and file your document; depends on why they rejected them. In most State courts, there are regulations that permit documents to be "filed on demand".
Politely ask the court clerk to explain why they are rejecting your filing. Remind them, that they can tell you what is generally wrong, without giving you legal advice.
If there is a fee required, or you are using the wrong version of a Judicial Council form, are missing a signature or a notarization, or are missing a required proof of service, you should not try to file the document until you correct the problem.
If you are complying with the appropriate laws, and that your document is correct and proper, you could politely ask the clerk to "demand file" your document.
Before requesting that a court clerk demand file your document, make sure you are correct. The published rules of your local court system may cover the rules and laws on the issues relevant to your proposed filing. Sometimes, the court clerk will be right.
If you are sure you are right, you can usually demand file your document. If the clerk refuses, you can ask to speak with a supervisor. The court clerk's immediate supervisor has the authority to instruct the clerk to accept your papers and file them.
The court supervisor's office might be in a different office or location, at a main courthouse. If the supervisor says no, you can send a polite letter to the presiding court judge.
If the judge says no, you probably should stop there. However, you might be able to write a letter to the Judicial Council. If they say no, it is probably best to give up or hire a lawyer to advise you.
When you file by demand, the clerk stamps your document with a very noticeable "filed on demand" stamp. This might alert opposing parties, that something might not be right with your document.
Demand file court documents only as a last resort. Try not to do it more often than is absolutely required. The best outcome of a demand filing is to change the clerk's policy, by them or their supervisors learning why your filing was proper. You do not want to be known to the court as a problem maker.
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http://www.JudgmentBuy.com - where Judgments and debts get recovered by the best - expertly matched for free, to your debtor.
Mark Shapiro, the judgment expert. We pay for leads, and have the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
What if you have a judgment to recover, either as the original judgment creditor, or the assignee of record, or are representing the original judgment creditor (almost always as their attorney), and the court clerk will not stamp and file your motion, or some other court document?
What to do when a court clerk will not accept, stamp, and file your document; depends on why they rejected them. In most State courts, there are regulations that permit documents to be "filed on demand".
Politely ask the court clerk to explain why they are rejecting your filing. Remind them, that they can tell you what is generally wrong, without giving you legal advice.
If there is a fee required, or you are using the wrong version of a Judicial Council form, are missing a signature or a notarization, or are missing a required proof of service, you should not try to file the document until you correct the problem.
If you are complying with the appropriate laws, and that your document is correct and proper, you could politely ask the clerk to "demand file" your document.
Before requesting that a court clerk demand file your document, make sure you are correct. The published rules of your local court system may cover the rules and laws on the issues relevant to your proposed filing. Sometimes, the court clerk will be right.
If you are sure you are right, you can usually demand file your document. If the clerk refuses, you can ask to speak with a supervisor. The court clerk's immediate supervisor has the authority to instruct the clerk to accept your papers and file them.
The court supervisor's office might be in a different office or location, at a main courthouse. If the supervisor says no, you can send a polite letter to the presiding court judge.
If the judge says no, you probably should stop there. However, you might be able to write a letter to the Judicial Council. If they say no, it is probably best to give up or hire a lawyer to advise you.
When you file by demand, the clerk stamps your document with a very noticeable "filed on demand" stamp. This might alert opposing parties, that something might not be right with your document.
Demand file court documents only as a last resort. Try not to do it more often than is absolutely required. The best outcome of a demand filing is to change the clerk's policy, by them or their supervisors learning why your filing was proper. You do not want to be known to the court as a problem maker.
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http://www.JudgmentBuy.com - where Judgments and debts get recovered by the best - expertly matched for free, to your debtor.
Mark Shapiro, the judgment expert. We pay for leads, and have the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
Thursday, January 19, 2012
California AB 1321 - yet another break for judgment debtors.
AB 1321 proposes to change the exemption process with regard to EWO's by requiring that once debtor files his claim of exemption, it would be sent by the sheriff to the employer with instructions to the employer that the withholding should be reduced by the additional amounts the debtor claims is exempt. If the creditor successfully opposes the claim, the employer would then be served with a copy of the order and adjust the amount of earnings withheld accordingly. Otherwise, the employer’s adjustment to the amounts withheld pursuant to the debtor’s claim of exemption will stand. In other words, the garnishment amount will reduce immediately based on claim of exemption, without having to wait for a judicial determination on the exemption.
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I cannot believe how our government does not understand that most judgment debtors stole money, defrauded someone, or ripped someone off to get sued. It is not fair to restrict judgment recovery like this. Mark Shapiro, JudgmentBuy.com
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I cannot believe how our government does not understand that most judgment debtors stole money, defrauded someone, or ripped someone off to get sued. It is not fair to restrict judgment recovery like this. Mark Shapiro, JudgmentBuy.com
Partnership Judgment Owners
I am not a lawyer, I am a Judgment Broker. This article is my opinion, and not legal advice, based on my experience in California. Laws vary in each state. If you ever need any legal advice or a strategy to use, please contact a lawyer.
What if you are a judgment enforcer, and the original judgment creditor is a general partnership that has dissolved? Can their judgment be recovered if you find one of the previous general partners?
The bigger problem to consider, is does the judgment debtor have any available assets to satisfy the judgment? Check that first, because that is the most important factor in any judgment recovery.
Anyone still authorized by an old partnership agreement, can assign the partnership's judgment to you.
The partnership agreement for a partnership, is similar to the bylaws of a corporation. The partnership agreement defines who can manage the affairs of the partnership, and who has the authority to get things done.
The most certain way to know if a person has the authority to assign a partnership's judgment, is to get a copy of the partnership agreement and read it, and advise them what they should do.
The problem with doing that, is it might be too close to giving legal advice, which might be an Unauthorized Practice of Law (UPL).
Reading someone else's contract, and advising them what it means legally, and what action they should take, might be considered to be UPL.
Any person still vested with the power to assign anything, (e.g., insurance policies, leases, rights to subrogation) may assign a judgment the partnership owns.
Ideally, the partnership would still be active, so they can easily assign their judgment to you.
If they are not active, the safest way to proceed, is to have the member who claims they have the authority to assign a judgment on behalf of the partnership, to put that in writing, and sign and notarize it, and give you a copy.
If you recover their judgment, who do you pay? One option is to make the check payable to the partnership.
Another option, is to have the creditor partnership draft a document where the person who assigned the judgment to you, gives specific instructions as to whom the partnership's share of a judgment recovery is to be paid, and in what pro-rata amount.
If you owe a partnership money, and there are no instructions, you can pay each of the partners a pro-rata amount equal to their percentage share of ownership specified in the partnership agreement (or the latest amendments to it).
A business partnership is an association of two or more people running a business with the goal of earning a profit.
A business partnership is considered to be one and the same as its owners. There may be little or no formality involved in creating a valid partnership.
The rules for determining the existence of a partnership are outlined in Part II of the Uniform Partnership Act (UPA).
Any profits pass through to the owners, and are divided according to what is specified in the partnership agreement.
As with a sole proprietorship, a partnership has only one level of taxation. A partnership is a tax-reporting entity, not a tax-paying entity.
While pass-through taxation is an advantage, owners of a partnership have unlimited personal liability. In general, each partner in a partnership is jointly liable for the partnership's obligations.
Joint liability means that the partners can be sued as a group. Several liability means that the partners are individually liable.
In some states, each partner is both jointly and severally liable for the damages resulting from the wrongdoings of other partners, and for the debts and obligations of the partnership.
Three rules for partnership liability are:
1. Each partner is liable for their own actions.
2. Each partner is liable for most actions of the other partners.
3. Each partner is liable for most actions of the employees of the business.
Unless there is an agreement to the contrary, the UPA gives partners equal voting rights, even if they contributed different amounts of capital to the partnership.
As with the case of a sole proprietorship, if the partnership chooses a fictitious name (different from the names of the partners), it is required to file a fictitious business name statement in the county where it is located.
Partnerships must also register with either the Secretary Of State, or be registered locally, sometimes at the county superior court.
Partners owe both a contractual duty and a fiduciary duty to one another. According to Black's Law Dictionary, a "fiduciary duty" is the "duty to act for the benefit of another person while subordinating one's personal interests to those of the other person".
Sometimes partnership operating agreements waive the fiduciary duty, so that partners can pursue other future opportunities.
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http://www.JudgmentBuy.com - where Judgments and debts get recovered by the best - expertly matched for free, to your debtor.
Mark D. Shapiro, we pay for leads, and have the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
What if you are a judgment enforcer, and the original judgment creditor is a general partnership that has dissolved? Can their judgment be recovered if you find one of the previous general partners?
The bigger problem to consider, is does the judgment debtor have any available assets to satisfy the judgment? Check that first, because that is the most important factor in any judgment recovery.
Anyone still authorized by an old partnership agreement, can assign the partnership's judgment to you.
The partnership agreement for a partnership, is similar to the bylaws of a corporation. The partnership agreement defines who can manage the affairs of the partnership, and who has the authority to get things done.
The most certain way to know if a person has the authority to assign a partnership's judgment, is to get a copy of the partnership agreement and read it, and advise them what they should do.
The problem with doing that, is it might be too close to giving legal advice, which might be an Unauthorized Practice of Law (UPL).
Reading someone else's contract, and advising them what it means legally, and what action they should take, might be considered to be UPL.
Any person still vested with the power to assign anything, (e.g., insurance policies, leases, rights to subrogation) may assign a judgment the partnership owns.
Ideally, the partnership would still be active, so they can easily assign their judgment to you.
If they are not active, the safest way to proceed, is to have the member who claims they have the authority to assign a judgment on behalf of the partnership, to put that in writing, and sign and notarize it, and give you a copy.
If you recover their judgment, who do you pay? One option is to make the check payable to the partnership.
Another option, is to have the creditor partnership draft a document where the person who assigned the judgment to you, gives specific instructions as to whom the partnership's share of a judgment recovery is to be paid, and in what pro-rata amount.
If you owe a partnership money, and there are no instructions, you can pay each of the partners a pro-rata amount equal to their percentage share of ownership specified in the partnership agreement (or the latest amendments to it).
A business partnership is an association of two or more people running a business with the goal of earning a profit.
A business partnership is considered to be one and the same as its owners. There may be little or no formality involved in creating a valid partnership.
The rules for determining the existence of a partnership are outlined in Part II of the Uniform Partnership Act (UPA).
Any profits pass through to the owners, and are divided according to what is specified in the partnership agreement.
As with a sole proprietorship, a partnership has only one level of taxation. A partnership is a tax-reporting entity, not a tax-paying entity.
While pass-through taxation is an advantage, owners of a partnership have unlimited personal liability. In general, each partner in a partnership is jointly liable for the partnership's obligations.
Joint liability means that the partners can be sued as a group. Several liability means that the partners are individually liable.
In some states, each partner is both jointly and severally liable for the damages resulting from the wrongdoings of other partners, and for the debts and obligations of the partnership.
Three rules for partnership liability are:
1. Each partner is liable for their own actions.
2. Each partner is liable for most actions of the other partners.
3. Each partner is liable for most actions of the employees of the business.
Unless there is an agreement to the contrary, the UPA gives partners equal voting rights, even if they contributed different amounts of capital to the partnership.
As with the case of a sole proprietorship, if the partnership chooses a fictitious name (different from the names of the partners), it is required to file a fictitious business name statement in the county where it is located.
Partnerships must also register with either the Secretary Of State, or be registered locally, sometimes at the county superior court.
Partners owe both a contractual duty and a fiduciary duty to one another. According to Black's Law Dictionary, a "fiduciary duty" is the "duty to act for the benefit of another person while subordinating one's personal interests to those of the other person".
Sometimes partnership operating agreements waive the fiduciary duty, so that partners can pursue other future opportunities.
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http://www.JudgmentBuy.com - where Judgments and debts get recovered by the best - expertly matched for free, to your debtor.
Mark D. Shapiro, we pay for leads, and have the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
Wednesday, January 18, 2012
We just placed a 44 million judgment today!
The debtor has some assets, 44 million judgment with assets in several states, placed with an expert, a very nice day for JudgmentBuy.com Smart judgment owners start with JudgmentBuy.
Monday, January 16, 2012
The Employer Sent the Money to Me?
Q: I found out where my judgment debtor worked, so I had a wage garnishment served on their employer. The employer is mailing checks to me, and I thought they should go to the sheriff. Since it is my money now, can I keep it?
A: To be safe, call your local Sheriff department, and tell them what happened, all levy money must go through the Sheriff. I would tell the employer to send the money to the Sheriff, and send what you got so far, to the Sheriff, to comply with all laws. You will get the money back soon.
Mark Shapiro, http://www.JudgmentBuy.com
A: To be safe, call your local Sheriff department, and tell them what happened, all levy money must go through the Sheriff. I would tell the employer to send the money to the Sheriff, and send what you got so far, to the Sheriff, to comply with all laws. You will get the money back soon.
Mark Shapiro, http://www.JudgmentBuy.com
Saturday, January 14, 2012
Forum.Judgmentbuy.com now has more than 457 active members!
JudgmentBuy.com is the only company that matches judgment owners with contingency collection lawyers, buyers, and judgment enforcers close to the debtors, free for everyone except debtors.
JudgmentBuy constantly updates its massive collection of the best free judgment articles and FAQs. JudgmentBuy also offers a fast growing, free BBS (Bulletin Board System) forum for all Judgment enforcers, buyers, and contingency collection lawyers, and those in related fields.
Forum.JudgmentBuy.com is now the second largest judgment forum in the world, and is already the biggest free judgment forum in the world.
The forum now has more than 457 active friendly recovery experts that support both new and experienced Judgment Enforcers and contingency collection lawyers. The forum is at: http://Forum.JudgmentBuy.com
JudgmentBuy.com's forum is a relaxed (yet professional) place for Judgment Enforcers, lawyers, private investigators, and other professionals to exchange ideas.
The forum has no auto-moderation hassles, there are no sales pitches, no hassles. To register for free, all one has to do is email Mark@GoGuys.com their first and last name, and they get a free account on the forum, with no obligations, hassles, or spam.
Forum.JudgmentBuy.com now has over 3,158 posts, with hundreds of quality articles, discussion, links to laws, and tips.
The forum is open to all, with no hassles, and it is the friendliest judgment enforcer forum on earth. Members can post whatever reasonable message they wish without fear of being reprimanded.
For many enforcers, the free Forum.JudgmentBuy.com, forum is the only forum they will ever need, and a great place to learn more about judgment recovery, or to keep in touch with experts nationwide.
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http://www.JudgmentBuy.com - where Judgments and debts get recovered by the best - expertly matched for free, to your debtor.
Mark D. Shapiro, we pay for judgment leads, and have the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
JudgmentBuy constantly updates its massive collection of the best free judgment articles and FAQs. JudgmentBuy also offers a fast growing, free BBS (Bulletin Board System) forum for all Judgment enforcers, buyers, and contingency collection lawyers, and those in related fields.
Forum.JudgmentBuy.com is now the second largest judgment forum in the world, and is already the biggest free judgment forum in the world.
The forum now has more than 457 active friendly recovery experts that support both new and experienced Judgment Enforcers and contingency collection lawyers. The forum is at: http://Forum.JudgmentBuy.com
JudgmentBuy.com's forum is a relaxed (yet professional) place for Judgment Enforcers, lawyers, private investigators, and other professionals to exchange ideas.
The forum has no auto-moderation hassles, there are no sales pitches, no hassles. To register for free, all one has to do is email Mark@GoGuys.com their first and last name, and they get a free account on the forum, with no obligations, hassles, or spam.
Forum.JudgmentBuy.com now has over 3,158 posts, with hundreds of quality articles, discussion, links to laws, and tips.
The forum is open to all, with no hassles, and it is the friendliest judgment enforcer forum on earth. Members can post whatever reasonable message they wish without fear of being reprimanded.
For many enforcers, the free Forum.JudgmentBuy.com, forum is the only forum they will ever need, and a great place to learn more about judgment recovery, or to keep in touch with experts nationwide.
-------
http://www.JudgmentBuy.com - where Judgments and debts get recovered by the best - expertly matched for free, to your debtor.
Mark D. Shapiro, we pay for judgment leads, and have the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
Thursday, January 5, 2012
Vehicle Levy Math
I am not a lawyer, I am a Judgment Broker. This article is my opinion, and not legal advice, based on my experience in California, and laws vary in each state. If you ever need any legal advice or a strategy to use, please contact a lawyer.
Levying a judgment debtor's vehicle is expensive and complicated. This article has a vehicle levy example, based on California laws, with example approximate costs.
Laws vary widely in each state, so always check local laws and the court for procedures, and verify costs with your local Sheriff department.
In California, when Sheriff levies are not bank accounts or wages, the judgment debtor's property must be sold at a Sheriff auction. This makes levies of anything except bank accounts and wages very expensive.
The auction process is an imperfect sales mechanism that usually yields relatively low prices, reducing the amount available for the judgment creditor. One day, perhaps Sheriff auctions will be on EBay.
The first expense is the debtor's exemption. That exemption is only for one vehicle owned by the debtor. The exemption starts at $2,725, and if they use the vehicle in their work as a commercial vehicle, the exemption is $5,900. The first $2,725 or $5,900 from an action sale, go back to the judgment debtor.
The cost of buying a writ of execution from the court is $25. The Sheriff charges about $1,000 to start a levy auction procedure.
The good news is the Sheriff often allows you to deposit half the required amount (e.g., $500) to start. The bad news is that is just the beginning of an upward spiral of costs that could sometimes make one regret levying a judgment debtor's vehicle.
After the (so far) $3,725 or $6,900 in expenses, there is the cost of the Sheriff's office charges to store the vehicle. In this article, the example is 30 days at $35 per day for vehicle storage costs, totaling $1,050.
In some situations, for example when the Sheriff is backlogged, or the judgment debtor files for bankruptcy protection, the storage costs you must always pay, go up dramatically.
One more way that bankruptcy is unfair to judgment creditors that levy a judgment debtor's vehicle, is that creditors must pay levy storage fees, even if the judgment debtor's bankruptcy is eventually denied. Four months of storage fees might cost about $4,200.
After all these costs, the auction fees are usually ten percent of what the vehicle sells for.
In this example so far, we are up to at least $4,775 or $7,950. To break even, the vehicle must sell for at least $5,306 or $8,840, to have a chance of paying anything toward satisfying the judgment.
Last but not least, there could also be the cost of paying off any previous loans on the vehicle.
The opening price bid at an auction is usually the costs of the debtor exemption and paying off previous loans on the vehicle.
Always attend Sheriff auctions when your judgment debtor's property is up for sale. While you might be able to credit bid at an auction, you cannot credit bid for the debtor's exemption, or to pay off any previous loans on the vehicle.
When assets are collected using a writ, they are applied first to the cost of obtaining a writ, second to accrued interest, third to the levying officers fees and costs for performing the levy, and fourth to the judgment principal.
If the opening bid price is not met, the $25 writ, at least $500 (often $1,000) of the Sheriff department's fee, and the (at least) $1,050 for vehicle storage, are your costs, even if the vehicle does not sell.
As mentioned earlier, vehicle storage fees could be prohibitive. If there are delays, it could be $4,000 or so, meaning you might be out of pocket more than $5,000. (You might get some of the Sheriff's fees back.)
I am not a lawyer. My opinion is that if the vehicle does not sell, it is often returned to the judgment debtor, and you may not be able to add your massive expenses to what the judgment debtor owes, which seems very unfair.
Here is a hypothetical example of costs for a California vehicle levy. This example assumes a good situation, where it makes sense to levy the judgment debtor's vehicle. As mentioned earlier, in many cases, you can lose a lot of money trying this.
In this example, the judgment debtor's vehicle is a car, with a Kelley Blue Book private-party value of $15,000, and a previous $4,000 loan that must be paid off.
The winning bid at the auction (75 percent of the Kelley Blue Book private-party value) was $11,250.
The fees could go like this: $11,250, minus a 10% auction fee of $1,125, minus $4,000 to pay off the previous loan, minus the judgment debtor exemption for their personal vehicle of $2,725, leaving a gross amount for the judgment creditor of: $6,125.
That $6,125 gross amount has expenses. The storage fee for example, is $1,000. Also, writ and levying officer fees of $525, auction detailing and inspection fees of $400, leaving a net $4,560 for the judgment creditor.
After an auction sale, as with a bank levy, the sheriff returns the writ of execution to the court, showing the amount paid to the creditor. That amount is credited toward paying the judgment, no matter what expenses the judgment creditor incurred.
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http://www.JudgmentBuy.com - where Judgments and debts get recovered by the best - expertly matched for free, to your debtor.
Mark D. Shapiro, I pay for leads, and have the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
Levying a judgment debtor's vehicle is expensive and complicated. This article has a vehicle levy example, based on California laws, with example approximate costs.
Laws vary widely in each state, so always check local laws and the court for procedures, and verify costs with your local Sheriff department.
In California, when Sheriff levies are not bank accounts or wages, the judgment debtor's property must be sold at a Sheriff auction. This makes levies of anything except bank accounts and wages very expensive.
The auction process is an imperfect sales mechanism that usually yields relatively low prices, reducing the amount available for the judgment creditor. One day, perhaps Sheriff auctions will be on EBay.
The first expense is the debtor's exemption. That exemption is only for one vehicle owned by the debtor. The exemption starts at $2,725, and if they use the vehicle in their work as a commercial vehicle, the exemption is $5,900. The first $2,725 or $5,900 from an action sale, go back to the judgment debtor.
The cost of buying a writ of execution from the court is $25. The Sheriff charges about $1,000 to start a levy auction procedure.
The good news is the Sheriff often allows you to deposit half the required amount (e.g., $500) to start. The bad news is that is just the beginning of an upward spiral of costs that could sometimes make one regret levying a judgment debtor's vehicle.
After the (so far) $3,725 or $6,900 in expenses, there is the cost of the Sheriff's office charges to store the vehicle. In this article, the example is 30 days at $35 per day for vehicle storage costs, totaling $1,050.
In some situations, for example when the Sheriff is backlogged, or the judgment debtor files for bankruptcy protection, the storage costs you must always pay, go up dramatically.
One more way that bankruptcy is unfair to judgment creditors that levy a judgment debtor's vehicle, is that creditors must pay levy storage fees, even if the judgment debtor's bankruptcy is eventually denied. Four months of storage fees might cost about $4,200.
After all these costs, the auction fees are usually ten percent of what the vehicle sells for.
In this example so far, we are up to at least $4,775 or $7,950. To break even, the vehicle must sell for at least $5,306 or $8,840, to have a chance of paying anything toward satisfying the judgment.
Last but not least, there could also be the cost of paying off any previous loans on the vehicle.
The opening price bid at an auction is usually the costs of the debtor exemption and paying off previous loans on the vehicle.
Always attend Sheriff auctions when your judgment debtor's property is up for sale. While you might be able to credit bid at an auction, you cannot credit bid for the debtor's exemption, or to pay off any previous loans on the vehicle.
When assets are collected using a writ, they are applied first to the cost of obtaining a writ, second to accrued interest, third to the levying officers fees and costs for performing the levy, and fourth to the judgment principal.
If the opening bid price is not met, the $25 writ, at least $500 (often $1,000) of the Sheriff department's fee, and the (at least) $1,050 for vehicle storage, are your costs, even if the vehicle does not sell.
As mentioned earlier, vehicle storage fees could be prohibitive. If there are delays, it could be $4,000 or so, meaning you might be out of pocket more than $5,000. (You might get some of the Sheriff's fees back.)
I am not a lawyer. My opinion is that if the vehicle does not sell, it is often returned to the judgment debtor, and you may not be able to add your massive expenses to what the judgment debtor owes, which seems very unfair.
Here is a hypothetical example of costs for a California vehicle levy. This example assumes a good situation, where it makes sense to levy the judgment debtor's vehicle. As mentioned earlier, in many cases, you can lose a lot of money trying this.
In this example, the judgment debtor's vehicle is a car, with a Kelley Blue Book private-party value of $15,000, and a previous $4,000 loan that must be paid off.
The winning bid at the auction (75 percent of the Kelley Blue Book private-party value) was $11,250.
The fees could go like this: $11,250, minus a 10% auction fee of $1,125, minus $4,000 to pay off the previous loan, minus the judgment debtor exemption for their personal vehicle of $2,725, leaving a gross amount for the judgment creditor of: $6,125.
That $6,125 gross amount has expenses. The storage fee for example, is $1,000. Also, writ and levying officer fees of $525, auction detailing and inspection fees of $400, leaving a net $4,560 for the judgment creditor.
After an auction sale, as with a bank levy, the sheriff returns the writ of execution to the court, showing the amount paid to the creditor. That amount is credited toward paying the judgment, no matter what expenses the judgment creditor incurred.
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http://www.JudgmentBuy.com - where Judgments and debts get recovered by the best - expertly matched for free, to your debtor.
Mark D. Shapiro, I pay for leads, and have the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
Getting a bond in the judgment business
Q: I am starting a recovery business, and my state requires that I have a $5000 cashier's check on file with them, or a $5000 surety bond. Do you know a good bonding company friendly to the judgment business?
A : For bonds (sometimes called an undertaking), try American Contractors Indemnity Bond services, (714) 558-3007 or (714) 558-8297.
http://www.JudgmentBuy.com - Mark Shapiro
A : For bonds (sometimes called an undertaking), try American Contractors Indemnity Bond services, (714) 558-3007 or (714) 558-8297.
http://www.JudgmentBuy.com - Mark Shapiro
Wednesday, January 4, 2012
Missing Creditors
I am not a lawyer, I am a Judgment Broker. This article is my opinion, and not legal advice, based on my experience in California, and laws vary in each state. If you ever need any legal advice or a strategy to use, please contact a lawyer.
Many times, it takes years or longer (sometimes never) to recover a judgment or debt. What should you do when you are a judgment enforcer, contingency attorney, or a collection agency, and you recover some money, and then cannot locate the Original Judgment or debt Owner (OJC) to pay them their share of a recovery?
The more money owed to the OJC, the more important this issue becomes. Anyone that recovers a debt or judgment on a contingency basis, after money is recovered, has a fiduciary responsibility to the OJC for their share of what is recovered. The OJC's share is defined by the purchase agreement.
Can one keep the OJC's share of recovered money after some certain time period? There are two answers, the first answer is no, it is never your money. The other answer is, you can think of the money as a temporary loan that will very likely have to be repaid one day.
When the OJC's money has been retained for years, yet the OJC cannot be found, some experts would recommend that the OJC's money be sent to the State as unclaimed funds. That way, no skeletons could ever come out of the closet.
Before you spend any of the OJC's money, consider these five points:
1) Email, mail, and call or leave voice mail, for all the contacts you have for the OJC. Whatever that does not bounce, send again one more time, in 30 days.
2) Remember, this is really not your money. The money is a deferred obligation to repay. There is a chance you will never be told to repay it. However, always remember that probably one day, you will have to return it.
3) Use the same data services and search systems you would use with a debtor, for your OJC. My opinion is that you have a permissible purpose because you are working on a judgment or debt, for the benefit of a consumer. (The government and data services seem to consider everyone a consumer.)
I cannot imagine anyone getting upset when you skip trace someone having for the sole purpose of sending them a check.
4) Document with both a paper file, and on your computer, when the money was recovered, and how much the OJC is owed. Because you might have to pay money to the OJC one day, never delete or destroy any case file information. Be sure to document how you diligently and repeatedly tried to locate the OJC.
Keep the goal of trying to return the OJC's money. If you cannot find the OJC, repeat a simple search for them every year. If anyone suspects you are purposely being evasive, they might try to sue you.
5) Be very willing to quickly return all the money, if the OJC, or someone from their estate, contacts you. I do not think you will owe the OJC any additional interest, unless your purchase contract specified that.
The bottom line is, the OJC's money is never really yours. However, this is similar to an interest-free loan with a small chance of never needing to be repaid.
Sometimes, the way life works is, when you spend someone else's money, you will likely have to pay it back, usually at a most inconvenient time.
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http://www.JudgmentBuy.com - where Judgments and debts get recovered by the best - expertly matched for free, to your debtor.
Mark D. Shapiro, with the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
Many times, it takes years or longer (sometimes never) to recover a judgment or debt. What should you do when you are a judgment enforcer, contingency attorney, or a collection agency, and you recover some money, and then cannot locate the Original Judgment or debt Owner (OJC) to pay them their share of a recovery?
The more money owed to the OJC, the more important this issue becomes. Anyone that recovers a debt or judgment on a contingency basis, after money is recovered, has a fiduciary responsibility to the OJC for their share of what is recovered. The OJC's share is defined by the purchase agreement.
Can one keep the OJC's share of recovered money after some certain time period? There are two answers, the first answer is no, it is never your money. The other answer is, you can think of the money as a temporary loan that will very likely have to be repaid one day.
When the OJC's money has been retained for years, yet the OJC cannot be found, some experts would recommend that the OJC's money be sent to the State as unclaimed funds. That way, no skeletons could ever come out of the closet.
Before you spend any of the OJC's money, consider these five points:
1) Email, mail, and call or leave voice mail, for all the contacts you have for the OJC. Whatever that does not bounce, send again one more time, in 30 days.
2) Remember, this is really not your money. The money is a deferred obligation to repay. There is a chance you will never be told to repay it. However, always remember that probably one day, you will have to return it.
3) Use the same data services and search systems you would use with a debtor, for your OJC. My opinion is that you have a permissible purpose because you are working on a judgment or debt, for the benefit of a consumer. (The government and data services seem to consider everyone a consumer.)
I cannot imagine anyone getting upset when you skip trace someone having for the sole purpose of sending them a check.
4) Document with both a paper file, and on your computer, when the money was recovered, and how much the OJC is owed. Because you might have to pay money to the OJC one day, never delete or destroy any case file information. Be sure to document how you diligently and repeatedly tried to locate the OJC.
Keep the goal of trying to return the OJC's money. If you cannot find the OJC, repeat a simple search for them every year. If anyone suspects you are purposely being evasive, they might try to sue you.
5) Be very willing to quickly return all the money, if the OJC, or someone from their estate, contacts you. I do not think you will owe the OJC any additional interest, unless your purchase contract specified that.
The bottom line is, the OJC's money is never really yours. However, this is similar to an interest-free loan with a small chance of never needing to be repaid.
Sometimes, the way life works is, when you spend someone else's money, you will likely have to pay it back, usually at a most inconvenient time.
-------
http://www.JudgmentBuy.com - where Judgments and debts get recovered by the best - expertly matched for free, to your debtor.
Mark D. Shapiro, with the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
Tuesday, January 3, 2012
Credit Bidding
I am not a lawyer, I am a Judgment Broker. This article is my opinion, and not legal advice, based on my experience in California, and laws vary in each state. If you ever need any legal advice or a strategy to use, please contact a lawyer.
One way that a judgment can be recovered is to use it to credit bid. Under certain auction circumstances, one might be able to credit bid for a debtor's property.
A credit bid is a chance for some or all of your secured claim or judgment against a person or entity, to be exchanged for the debtor's assets, if and when their assets become available for sale at an auction.
At an auction sale, you may be able to show up at the auction and instead of bidding with cash, you can place a bid using credit from your judgment, or from your secured claim.
An example where one may be able to credit bid, is if one paid the Sheriff to levy and auction a judgment debtor's property. At the time of the auction, one could use the amount owed on their judgment, to pay for most of the cost of winning the property at the auction.
Credit bidding for a debtor's property (for example, a vehicle or real estate), can only happen at a (Sheriff or bankruptcy court) auction for that property, for creditors having a secured interest in that property.
Make sure credit bidding is allowed, with your local court and Sheriff. In some places and situations, one cannot credit bid. In other places, to credit bid, there must be another person at the auction, bidding with cash (or a cash equivalent).
Credit bidders have a big advantage at auctions, because most attendees that bid must be able to immediately present the auctioneer with cash or a cash equivalent, for example a cashier's check.
Credit bids are not cash. In California, credit bidding at Sheriff auctions are covered by CCPs 701.590 and 701.560. In California, one usually needs to make a cash deposit, to be able to credit bid at a Sheriff's auction.
In most auctions situations, you have to pay a lot of cash, in addition to what you can credit bid. One example is the expense of a debtor's claim of exemption. One cannot credit bid for the amount of that exemption, which by law must be paid to the debtor.
Usually, the opening bid price is what is owed for loans on the property, plus the debtor's exemption. If there are no bidders at an auction, what happens next depends on the situation. Sometimes, the property is returned to the debtor.
I have heard from lawyers that I know, that lawyers, when credit bidding for their clients, do not have to pay any cash upfront.
I know a judgment enforcer, who paid the Sheriff to levy a judgment debtor's car that he wanted. At the auction, he paid the other bidders $500 each to walk away, so he was the sole winning bidder on the car for a very good price.
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http://www.JudgmentBuy.com - where Judgments and debts quickly get recovered by the best - matched for free to your debtor.
Mark D. Shapiro, with the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
One way that a judgment can be recovered is to use it to credit bid. Under certain auction circumstances, one might be able to credit bid for a debtor's property.
A credit bid is a chance for some or all of your secured claim or judgment against a person or entity, to be exchanged for the debtor's assets, if and when their assets become available for sale at an auction.
At an auction sale, you may be able to show up at the auction and instead of bidding with cash, you can place a bid using credit from your judgment, or from your secured claim.
An example where one may be able to credit bid, is if one paid the Sheriff to levy and auction a judgment debtor's property. At the time of the auction, one could use the amount owed on their judgment, to pay for most of the cost of winning the property at the auction.
Credit bidding for a debtor's property (for example, a vehicle or real estate), can only happen at a (Sheriff or bankruptcy court) auction for that property, for creditors having a secured interest in that property.
Make sure credit bidding is allowed, with your local court and Sheriff. In some places and situations, one cannot credit bid. In other places, to credit bid, there must be another person at the auction, bidding with cash (or a cash equivalent).
Credit bidders have a big advantage at auctions, because most attendees that bid must be able to immediately present the auctioneer with cash or a cash equivalent, for example a cashier's check.
Credit bids are not cash. In California, credit bidding at Sheriff auctions are covered by CCPs 701.590 and 701.560. In California, one usually needs to make a cash deposit, to be able to credit bid at a Sheriff's auction.
In most auctions situations, you have to pay a lot of cash, in addition to what you can credit bid. One example is the expense of a debtor's claim of exemption. One cannot credit bid for the amount of that exemption, which by law must be paid to the debtor.
Usually, the opening bid price is what is owed for loans on the property, plus the debtor's exemption. If there are no bidders at an auction, what happens next depends on the situation. Sometimes, the property is returned to the debtor.
I have heard from lawyers that I know, that lawyers, when credit bidding for their clients, do not have to pay any cash upfront.
I know a judgment enforcer, who paid the Sheriff to levy a judgment debtor's car that he wanted. At the auction, he paid the other bidders $500 each to walk away, so he was the sole winning bidder on the car for a very good price.
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http://www.JudgmentBuy.com - where Judgments and debts quickly get recovered by the best - matched for free to your debtor.
Mark D. Shapiro, with the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
Monday, January 2, 2012
Can You Garnish a Judgment Debtor's bank line of credit?
Q: Can You Garnish a Judgment Debtor's bank line of credit?
A: Usually not, unless the line of credit is tied to the judgment debtor's bank account to automatically cover them for bounced checks.
Al Jones wrote: Very few banks would tap a customers’
line of credit in response to a court
garnishment, but there is one instance in which you probably should…
In the case of Southwestern Glass Company, Inc. v. The Bank of Arkansas, N.A.,
the Eighth Circuit U.S. Court of Appeals ruled that the bank was liable for over
$500,000 because they failed to do so.All of our bank clients – in Missouri,
Nebraska, and Arkansas - fall into the Eighth Circuit and are subject to this
ruling. In layman’s terms, the bank was found liable because the LOC was linked
automatically to a DDA. If the customer wrote an NSF item, the check was
automatically covered via the LOC, which was the customer’s intent anyway.
The appellate court held that the garnishment should be treated the same as a
customer check. As always, please consult your corporate counsel should you
find your bank in such a position.
Our very non-legal opinion is that no LOC should be automatically linked to a
DDA. As long as a loan officer’s approval is required before payment of the
item, no case law exists which states that a LOC would be subject to a
garnishment.
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Mark Shapiro, http://www.JudgmetnBuy.com
A: Usually not, unless the line of credit is tied to the judgment debtor's bank account to automatically cover them for bounced checks.
Al Jones wrote: Very few banks would tap a customers’
line of credit in response to a court
garnishment, but there is one instance in which you probably should…
In the case of Southwestern Glass Company, Inc. v. The Bank of Arkansas, N.A.,
the Eighth Circuit U.S. Court of Appeals ruled that the bank was liable for over
$500,000 because they failed to do so.All of our bank clients – in Missouri,
Nebraska, and Arkansas - fall into the Eighth Circuit and are subject to this
ruling. In layman’s terms, the bank was found liable because the LOC was linked
automatically to a DDA. If the customer wrote an NSF item, the check was
automatically covered via the LOC, which was the customer’s intent anyway.
The appellate court held that the garnishment should be treated the same as a
customer check. As always, please consult your corporate counsel should you
find your bank in such a position.
Our very non-legal opinion is that no LOC should be automatically linked to a
DDA. As long as a loan officer’s approval is required before payment of the
item, no case law exists which states that a LOC would be subject to a
garnishment.
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Mark Shapiro, http://www.JudgmetnBuy.com
Sunday, January 1, 2012
New Judicial Council Forms for California in 2012
New Judicial Council Forms are now online at http://www.courts.ca.gov/forms.htm.
New forms include the writ of execution (EJ-130) and
Confidential Statement Of Judgment Debtor's Social Security Number (WG-035).
http://www.JudgmentBuy.com
New forms include the writ of execution (EJ-130) and
Confidential Statement Of Judgment Debtor's Social Security Number (WG-035).
http://www.JudgmentBuy.com
Saturday, December 31, 2011
Vehicle Levies
I am not a lawyer, I am a Judgment Broker. This article is my opinion, based on my experience in California, and laws vary in each state. If you ever need legal advice or a strategy to use, please contact a lawyer.
One tool to recover judgments is paying a Sheriff to levy a judgment debtor's vehicle, which could be a car, truck, motorcycle, etc.
Levying a judgment debtor's vehicle can be risky and difficult for several reasons:
1) It requires a lot of money to have a Sheriff seize and sell a judgment debtor's vehicle. If you do not have thousands of dollars to gamble, it is best not to try.
2) The sale may not make economic sense. The judgment debtor's vehicle may not have enough equity in it because of previous leases or loans.
Other expenses and considerations are State exemptions, the imperfect market (a forced sale) at Sheriff auction sales, and the costs involved with paying the Sheriff to tow, store, and sell at auction, the judgment debtor's vehicle.
Especially if you do not calculate all these factors first, you can easily lose money attempting to levy a judgment debtor's vehicle.
3) The Sheriff usually will not look for hidden vehicles, and will not pick locks or break into a locked area, without a separate court order instructing them to do so.
You have to describe the vehicle to the Sheriff in detail, supply the license plate number, and exactly where it is parked. Usually, the Sheriff will make just a few attempts to secure the vehicle for your initial fee.
4) Legally, one cannot threaten anyone. Due to laws, especially in California, usually you should avoid communicating to judgment debtor that you plan to pay a Sheriff to take their vehicle.
In California, the safest legal way for a judgment creditor to pay the Sheriff to seize the judgment debtor's vehicle, is by surprise.
Losing a vehicle can cause a strong reaction in the judgment debtor. Ideally that reaction would be to pay you or the Sheriff to stop the levy.
There is also a chance their reaction might be irrational. Most judgment debtors rely on their vehicles for transportation to work, to go shopping, or to take kids to school.
Before you attempt to levy a judgment debtor's vehicle, try a bank or wage garnishment first.
After you do your homework, you may decide to buy a writ of execution, and then pay the Sheriff to levy the judgment debtor's vehicle. The judgment debtor may respond by filing a claim of exemption.
If the debtor files for bankruptcy protection, the money you spent will likely go down the drain.
You may hear from the judgment debtor, after they try to file a vehicle theft report, and find out what happened, or if they see the Sheriff towing their vehicle.
Sometimes the judgment debtor will contact you, to make arrangements to get their vehicle back ASAP, and that might be your best opportunity to work out a deal. Remember, whatever you paid the court and the Sheriff, is not refundable.
For every three judgment debtors that say they will file for bankruptcy protection, usually one actually does. Listen to them, then go back to the office and check with PACER.
If the Sheriff auction goes through, be sure to contact the Sheriff's office to learn what is required. In California, the Sheriff usually sends you a notice of the auction sale, with the cost of the opening bid.
Show up at the auction, to protect your position. If you are not there, someone could purchase the vehicle for the price of the opening bid. If that happens, you would get nothing toward your judgment - and you will lose what you paid for storage fees.
In California, one goes to the auction with certified funds (see CCP 701.590), for the minimum opening bid, which is the total of the liens, plus the debtor's exemption.
You can credit bid for anything over the opening bid (which may include the debtor's claimed exemption), to help keep the bidding prices up, up to the amount listed on the writ of execution for your judgment.
Unlike EBay, fierce bidding is extremely rare at Sheriff auctions. Usually, there are only a few bidders at each sale.
Sheriff's sales are not well-advertised. The law only requires the Sheriff to post a flyer at a public place, for instance a grocery store or a post office. You could do your own advertising to try to attract more bidders.
If you are not the winning bidder, the Sheriff does the math, takes their cut, deducts expenses, and will eventually send you a check.
If you are the winning bidder, you can keep the vehicle or sell it. If you sell it, you must spend more, to make the vehicle ready for sale.
If you are the assignee of record, you have to decide if you will split any potential profit with the original judgment creditor.
Many enforcers do not split any vehicle levy profits, because they do not get to split the costs of the vehicle levy, or the risk of losing all the money they spent; with the original judgment creditor.
------
http://www.JudgmentBuy.com - where Judgments and debts quickly get recovered by the best - matched for free to your debtor.
Mark D. Shapiro - with the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
One tool to recover judgments is paying a Sheriff to levy a judgment debtor's vehicle, which could be a car, truck, motorcycle, etc.
Levying a judgment debtor's vehicle can be risky and difficult for several reasons:
1) It requires a lot of money to have a Sheriff seize and sell a judgment debtor's vehicle. If you do not have thousands of dollars to gamble, it is best not to try.
2) The sale may not make economic sense. The judgment debtor's vehicle may not have enough equity in it because of previous leases or loans.
Other expenses and considerations are State exemptions, the imperfect market (a forced sale) at Sheriff auction sales, and the costs involved with paying the Sheriff to tow, store, and sell at auction, the judgment debtor's vehicle.
Especially if you do not calculate all these factors first, you can easily lose money attempting to levy a judgment debtor's vehicle.
3) The Sheriff usually will not look for hidden vehicles, and will not pick locks or break into a locked area, without a separate court order instructing them to do so.
You have to describe the vehicle to the Sheriff in detail, supply the license plate number, and exactly where it is parked. Usually, the Sheriff will make just a few attempts to secure the vehicle for your initial fee.
4) Legally, one cannot threaten anyone. Due to laws, especially in California, usually you should avoid communicating to judgment debtor that you plan to pay a Sheriff to take their vehicle.
In California, the safest legal way for a judgment creditor to pay the Sheriff to seize the judgment debtor's vehicle, is by surprise.
Losing a vehicle can cause a strong reaction in the judgment debtor. Ideally that reaction would be to pay you or the Sheriff to stop the levy.
There is also a chance their reaction might be irrational. Most judgment debtors rely on their vehicles for transportation to work, to go shopping, or to take kids to school.
Before you attempt to levy a judgment debtor's vehicle, try a bank or wage garnishment first.
After you do your homework, you may decide to buy a writ of execution, and then pay the Sheriff to levy the judgment debtor's vehicle. The judgment debtor may respond by filing a claim of exemption.
If the debtor files for bankruptcy protection, the money you spent will likely go down the drain.
You may hear from the judgment debtor, after they try to file a vehicle theft report, and find out what happened, or if they see the Sheriff towing their vehicle.
Sometimes the judgment debtor will contact you, to make arrangements to get their vehicle back ASAP, and that might be your best opportunity to work out a deal. Remember, whatever you paid the court and the Sheriff, is not refundable.
For every three judgment debtors that say they will file for bankruptcy protection, usually one actually does. Listen to them, then go back to the office and check with PACER.
If the Sheriff auction goes through, be sure to contact the Sheriff's office to learn what is required. In California, the Sheriff usually sends you a notice of the auction sale, with the cost of the opening bid.
Show up at the auction, to protect your position. If you are not there, someone could purchase the vehicle for the price of the opening bid. If that happens, you would get nothing toward your judgment - and you will lose what you paid for storage fees.
In California, one goes to the auction with certified funds (see CCP 701.590), for the minimum opening bid, which is the total of the liens, plus the debtor's exemption.
You can credit bid for anything over the opening bid (which may include the debtor's claimed exemption), to help keep the bidding prices up, up to the amount listed on the writ of execution for your judgment.
Unlike EBay, fierce bidding is extremely rare at Sheriff auctions. Usually, there are only a few bidders at each sale.
Sheriff's sales are not well-advertised. The law only requires the Sheriff to post a flyer at a public place, for instance a grocery store or a post office. You could do your own advertising to try to attract more bidders.
If you are not the winning bidder, the Sheriff does the math, takes their cut, deducts expenses, and will eventually send you a check.
If you are the winning bidder, you can keep the vehicle or sell it. If you sell it, you must spend more, to make the vehicle ready for sale.
If you are the assignee of record, you have to decide if you will split any potential profit with the original judgment creditor.
Many enforcers do not split any vehicle levy profits, because they do not get to split the costs of the vehicle levy, or the risk of losing all the money they spent; with the original judgment creditor.
------
http://www.JudgmentBuy.com - where Judgments and debts quickly get recovered by the best - matched for free to your debtor.
Mark D. Shapiro - with the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
Friday, December 23, 2011
California Assignment Order Laws
I am not a lawyer, I am a Judgment and Collection Agency Broker. This article is my opinion, and not legal advice, based on my experience in California, and laws vary in each state. If you ever need any legal advice or a strategy to use, please contact a lawyer.
This article summarizes and comments on the most common California civil laws concerning assignment orders.
The text of the California laws mentioned in this article have not been included, because they can be found with a web search. It is very important to know the laws for your state.
California has two sets of civil laws - one set covers the general rights and obligations, for the people and entities in California, and they are called the California Civil Codes.
The other set of California civil laws are the California Codes Of Civil Procedures (CCP), that cover details about courts, procedures, and the implementation of the civil laws in California.
These are the California laws that directly address assignment orders:
CCP 708.510 - This is the most important law about assignment orders, it lists the types of incomes that can be reached, and what must be included in assignment orders. This law says the judgment debtor can be served by mail.
This law does not specify how third parties that owe the judgment debtor may be served. One option is to have all parties served personally. That way, if a party does not comply, you can ask the court to issue contempt of court penalties, or you might be able to start a lawsuit against them.
To save money, perhaps have the parties served by mail first. When the parties sending the monies are served, without giving legal advice, politely make sure they understand what the order says. If they do not respond, politely contact them, then have them personally served if necessary.
CCP 708.520 - This law covers optional restraining orders that must be personally served on the judgment debtor, warning them not to play any shenanigans, and to obey the court's order.
CCP 708.530 - This law refers one to Civil Code 955.1, which covers topics such as the details and priorities of payments. 708.530 also states that assignment orders may be recorded as a lien.
CCP 708.540 - This law is common sense, the entity paying your debtor is not obligated to pay you, until after they are served notice of the assignment order.
CCP 708.550 - This law explains how a judgment debtor could claim that the income stream being assigned is exempt, which means the creditor will be served for another hearing to decide the matter.
CCP 708.560 - This law allows assignment orders to be amended or canceled by either party, and requires service on the other party, and another court hearing.
These are some of the other California laws that affect assignment orders:
CCPs 706.010 and 706.011 - This are the wage garnishment laws, that regulate how earnings may be levied to pay a judgment debt, and has legal definitions of the involved parties.
While one could claim that assignment orders do not have to follow CCPs 706.010 and 706.011, most judges prefer to approve orders that comply with the spirit of CCPs 706.010 and 706.011.
CCP 708.610 - This law allows a receiver to be appointed if necessary.
California Civil Code Section 955.1 - This law defines how levies and third-parties have to follow commercial codes. Also, how third parties must respond, and how third parties cannot easily avoid paying what is owed to the judgment debtor, unless they are involved with a public utility, which is rare.
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http://www.JudgmentBuy.com - where Judgments and debts quickly get recovered by the best - matched for free to your debtor.
Mark D. Shapiro, with the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
This article summarizes and comments on the most common California civil laws concerning assignment orders.
The text of the California laws mentioned in this article have not been included, because they can be found with a web search. It is very important to know the laws for your state.
California has two sets of civil laws - one set covers the general rights and obligations, for the people and entities in California, and they are called the California Civil Codes.
The other set of California civil laws are the California Codes Of Civil Procedures (CCP), that cover details about courts, procedures, and the implementation of the civil laws in California.
These are the California laws that directly address assignment orders:
CCP 708.510 - This is the most important law about assignment orders, it lists the types of incomes that can be reached, and what must be included in assignment orders. This law says the judgment debtor can be served by mail.
This law does not specify how third parties that owe the judgment debtor may be served. One option is to have all parties served personally. That way, if a party does not comply, you can ask the court to issue contempt of court penalties, or you might be able to start a lawsuit against them.
To save money, perhaps have the parties served by mail first. When the parties sending the monies are served, without giving legal advice, politely make sure they understand what the order says. If they do not respond, politely contact them, then have them personally served if necessary.
CCP 708.520 - This law covers optional restraining orders that must be personally served on the judgment debtor, warning them not to play any shenanigans, and to obey the court's order.
CCP 708.530 - This law refers one to Civil Code 955.1, which covers topics such as the details and priorities of payments. 708.530 also states that assignment orders may be recorded as a lien.
CCP 708.540 - This law is common sense, the entity paying your debtor is not obligated to pay you, until after they are served notice of the assignment order.
CCP 708.550 - This law explains how a judgment debtor could claim that the income stream being assigned is exempt, which means the creditor will be served for another hearing to decide the matter.
CCP 708.560 - This law allows assignment orders to be amended or canceled by either party, and requires service on the other party, and another court hearing.
These are some of the other California laws that affect assignment orders:
CCPs 706.010 and 706.011 - This are the wage garnishment laws, that regulate how earnings may be levied to pay a judgment debt, and has legal definitions of the involved parties.
While one could claim that assignment orders do not have to follow CCPs 706.010 and 706.011, most judges prefer to approve orders that comply with the spirit of CCPs 706.010 and 706.011.
CCP 708.610 - This law allows a receiver to be appointed if necessary.
California Civil Code Section 955.1 - This law defines how levies and third-parties have to follow commercial codes. Also, how third parties must respond, and how third parties cannot easily avoid paying what is owed to the judgment debtor, unless they are involved with a public utility, which is rare.
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http://www.JudgmentBuy.com - where Judgments and debts quickly get recovered by the best - matched for free to your debtor.
Mark D. Shapiro, with the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
Wednesday, December 21, 2011
Lazy Judgment Enforcers
I am not a lawyer, I am a Judgment and Collections Broker. This article is my opinion. If you ever need legal advice or a strategy to use, please contact a lawyer.
Every day, we get at least one phone call from someone that owns a judgment, that is "sick and tired of lazy judgment enforcers".
For example, today someone called, and said they have had their million dollar judgment with three different judgment enforcers and one contingency collection lawyer, and none of them made any progress "because they are all lazy".
When we asked about their judgment debtor, the reason for their repeated experience became clear. Their debtor was a world-class scammer, that had deeply hidden their assets, and "all you have to do is find out where they hid it". That is the problem.
When the economy was booming, it was fairly easy to find contingency experts or buyers who would work on pure contingency, fronting massive amounts of time and money chasing frauds that had hidden their assets.
In a down economy, most enforcers, contingency lawyers, and contingency collection agencies, have become very picky about which judgments they will work on a pure contingency basis.
Put yourself in the enforcer's shoes: You are offering them a million dollar judgment against a 72-year old man with deeply hidden assets.
Two other enforcers tried before to recover it, however they "did nothing". They both told you they did not want to spend any more money trying to recover your judgment.
Now, your offer (that no enforcer is willing to take) is: "You can recover my judgment - if you will agree to pure contingency, constantly update me with your progress reports, and should you not make real progress, return it to me within two years."
What is wrong with your offer? Your judgment is very difficult - and you are asking for the enforcer to spend a large amount of their own time and money upfront, and agree to your special conditions and time limits.
Ignoring for now, that time limits might be considered bailment in some places, and that most enforcers will not allow you to micro-manage them; the real show stopper is the judgment debtor's assets are "deeply hidden".
Most often, when you think a judgment enforcer is lazy, it means there is not an obvious or reasonable way to recover any debtor assets to satisfy the judgment.
When times were good, there was an assumption of upward mobility that made judgment buyers willing to take more risks. The economy has affected judgment enforcers as much as most other businesses. Most judgment enforcers are now becoming very conservative.
Also during good times, sneaky judgment debtors would sometimes carelessly spend money on things that left records. Now, even rich and sneaky debtors, are laying low because they know hungry creditors are after their assets.
The economy has caused most judgment buyers to go out of business, and the few that are left, will buy judgments for more than three cents on the dollar when the debtor has deeply hidden their assets.
If your debtor has deeply hidden their assets, and nobody will buy, or wants to try to enforce your judgment on a contingency basis, you might want to first, hire a private investigator to find some of those hidden assets.
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http://www.JudgmentBuy.com - where Judgments and debts quickly get recovered by the best - matched for free to your debtor.
Mark D. Shapiro, with the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
Every day, we get at least one phone call from someone that owns a judgment, that is "sick and tired of lazy judgment enforcers".
For example, today someone called, and said they have had their million dollar judgment with three different judgment enforcers and one contingency collection lawyer, and none of them made any progress "because they are all lazy".
When we asked about their judgment debtor, the reason for their repeated experience became clear. Their debtor was a world-class scammer, that had deeply hidden their assets, and "all you have to do is find out where they hid it". That is the problem.
When the economy was booming, it was fairly easy to find contingency experts or buyers who would work on pure contingency, fronting massive amounts of time and money chasing frauds that had hidden their assets.
In a down economy, most enforcers, contingency lawyers, and contingency collection agencies, have become very picky about which judgments they will work on a pure contingency basis.
Put yourself in the enforcer's shoes: You are offering them a million dollar judgment against a 72-year old man with deeply hidden assets.
Two other enforcers tried before to recover it, however they "did nothing". They both told you they did not want to spend any more money trying to recover your judgment.
Now, your offer (that no enforcer is willing to take) is: "You can recover my judgment - if you will agree to pure contingency, constantly update me with your progress reports, and should you not make real progress, return it to me within two years."
What is wrong with your offer? Your judgment is very difficult - and you are asking for the enforcer to spend a large amount of their own time and money upfront, and agree to your special conditions and time limits.
Ignoring for now, that time limits might be considered bailment in some places, and that most enforcers will not allow you to micro-manage them; the real show stopper is the judgment debtor's assets are "deeply hidden".
Most often, when you think a judgment enforcer is lazy, it means there is not an obvious or reasonable way to recover any debtor assets to satisfy the judgment.
When times were good, there was an assumption of upward mobility that made judgment buyers willing to take more risks. The economy has affected judgment enforcers as much as most other businesses. Most judgment enforcers are now becoming very conservative.
Also during good times, sneaky judgment debtors would sometimes carelessly spend money on things that left records. Now, even rich and sneaky debtors, are laying low because they know hungry creditors are after their assets.
The economy has caused most judgment buyers to go out of business, and the few that are left, will buy judgments for more than three cents on the dollar when the debtor has deeply hidden their assets.
If your debtor has deeply hidden their assets, and nobody will buy, or wants to try to enforce your judgment on a contingency basis, you might want to first, hire a private investigator to find some of those hidden assets.
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http://www.JudgmentBuy.com - where Judgments and debts quickly get recovered by the best - matched for free to your debtor.
Mark D. Shapiro, with the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
Sunday, December 18, 2011
Lien Payoffs
I am not a lawyer, I am a Judgment and Collections Broker. This article is my opinion, based on my experience in California, and laws vary in each state. If you ever need legal advice or a strategy to use, please contact a lawyer.
In the old days, one of the easiest ways to satisfy a judgment was to record a lien on a judgment debtor's real estate.
When property was increasing in price, refinances and resales happened often enough that one could count on getting paid eventually (usually in full), by recording a lien on the judgment debtor's real estate property.
These days, many properties are underwater, and recording liens on upside down property often ends up being a waste of time and money. Yet, even these days, some properties still sell, and get refinanced.
If your lien is recorded properly, you might get a call or a letter someday. Often the judgment debtor or someone working with them on a loan or a sale, might contact you.
Sometimes they will offer to pay in full, other times they will ask or tell you, to settle for pennies on the dollar, to release your lien.
A promise is only a concept, and you require cash. Usually, you will be asked to sign a "release of lien" form, based on a promise to pay you. The payment should come from an escrow fund. If the money is not coming from an escrow account, be careful.
How can you make sure you will get paid, and how should you handle this situation? Make sure to get paid, before you release a lien, and especially before you satisfy a judgment.
These days, it is a good idea to compromise when appropriate. If they want to pay half, offer 10% off, then negotiate, based on the situation of the judgment debtor. "Know when to hold em, know when to fold em". Try to make the deal work, however try not to get fooled.
If you are told you must take ten cents on the dollar, or else get nothing, ask which of their other creditors are willing to settle for that much.
If you are the only one being asked/warned that you should steeply discount, that might be a warning sign. One idea is to have a goal of only giving breaks to judgment debtors in difficult situations.
Before releasing a lien, you should be a party to the escrow, just like a lender. You could bring your lien release to the escrow closing, and give it to them, right after they hand you a certified check.
It is usually a good idea to insist on dealing with the escrow company directly. Ask the escrow or title company to send you a demand release request (sometimes called a payoff statement).
Usually, the title or escrow company will send you a lien release request, or a payment statement request. Fill it out, or make your own answer sheet for them. Make sure to write, that you will release the lien and satisfy the judgment, after receipt of full payment.
Along with a response to their demand release request, also send the escrow or title company your payoff statement.
The payoff statement should include the balance due as of the statement date, and include a daily interest amount, so they can calculate the future balance. If you are the assignee of record, mention that.
Make sure to satisfy the judgment, after you are paid most of what is owed. In the game of judgment recovery, recovering 90% of what is owed is a major win.
Title companies do not care that much if you satisfy the judgment or release the lien, because they can prove they paid you. However, the laws and ex-judgment debtors do care, so make sure the lien release, and the satisfaction of judgment is done correctly.
To prevent problems, some judgment owners include an extra fee, in exchange for working and paying, to take care of all the required paperwork and filings. When answering a demand release request or a payoff statement, they include their charge, to get a certified copy of the satisfaction of judgment, and record it at the county recorder, and send the title company a copy of the recorded documents.
Here is an example of a lien release I have used:
Your Name (your capacity - assignee of record or judgment creditor)
Your Address
Your City, State, Zip
Your Phone Number and Email
SUPERIOR COURT OF THE (YOUR STATE) OF YOUR STATE
COUNTY OF (YOUR COUNTY), YOUR DIVISION (small claims, civil, etc.)
Case # 123456789
RELEASE OF JUDGMENT LIEN CCP 697.370
Paul Plaintiff
vs.
Dan Defendant
The undersigned hereby releases from the judgment lien described herein, all of the interests in the real property in YOURCOUNTY County, presently owned or hereafter acquired of the herein named judgment debtor subject to the lien.
The lien released, is in the name of Dan Defendant, from the judgment lien recorded February 12, 2009, as instrument number 99-99-999999 as recorded in the office of the County Recorder of YOURCOUNTY County, YOURSTATE, described as:
Lot 17, Tract Number 999, in the City of Debtorville, and County of YOURCOUNTY in the state of YOURSTATE, as per the map recorded in book 99, page 99 in the office of the County Recorder of YOURCOUNTY, commonly described as 99999 Debtor Street, Debtorville, CA 99999, having an assessor parcel number of: 99-CA-9876544.
Executed at: __________________________ this 11th day of April, 2011
By: _________________________________ YOUR NAME (Capacity).
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http://www.JudgmentBuy.com - where Judgments and debts quickly get recovered by the best - matched for free.
Mark Shapiro, with the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
In the old days, one of the easiest ways to satisfy a judgment was to record a lien on a judgment debtor's real estate.
When property was increasing in price, refinances and resales happened often enough that one could count on getting paid eventually (usually in full), by recording a lien on the judgment debtor's real estate property.
These days, many properties are underwater, and recording liens on upside down property often ends up being a waste of time and money. Yet, even these days, some properties still sell, and get refinanced.
If your lien is recorded properly, you might get a call or a letter someday. Often the judgment debtor or someone working with them on a loan or a sale, might contact you.
Sometimes they will offer to pay in full, other times they will ask or tell you, to settle for pennies on the dollar, to release your lien.
A promise is only a concept, and you require cash. Usually, you will be asked to sign a "release of lien" form, based on a promise to pay you. The payment should come from an escrow fund. If the money is not coming from an escrow account, be careful.
How can you make sure you will get paid, and how should you handle this situation? Make sure to get paid, before you release a lien, and especially before you satisfy a judgment.
These days, it is a good idea to compromise when appropriate. If they want to pay half, offer 10% off, then negotiate, based on the situation of the judgment debtor. "Know when to hold em, know when to fold em". Try to make the deal work, however try not to get fooled.
If you are told you must take ten cents on the dollar, or else get nothing, ask which of their other creditors are willing to settle for that much.
If you are the only one being asked/warned that you should steeply discount, that might be a warning sign. One idea is to have a goal of only giving breaks to judgment debtors in difficult situations.
Before releasing a lien, you should be a party to the escrow, just like a lender. You could bring your lien release to the escrow closing, and give it to them, right after they hand you a certified check.
It is usually a good idea to insist on dealing with the escrow company directly. Ask the escrow or title company to send you a demand release request (sometimes called a payoff statement).
Usually, the title or escrow company will send you a lien release request, or a payment statement request. Fill it out, or make your own answer sheet for them. Make sure to write, that you will release the lien and satisfy the judgment, after receipt of full payment.
Along with a response to their demand release request, also send the escrow or title company your payoff statement.
The payoff statement should include the balance due as of the statement date, and include a daily interest amount, so they can calculate the future balance. If you are the assignee of record, mention that.
Make sure to satisfy the judgment, after you are paid most of what is owed. In the game of judgment recovery, recovering 90% of what is owed is a major win.
Title companies do not care that much if you satisfy the judgment or release the lien, because they can prove they paid you. However, the laws and ex-judgment debtors do care, so make sure the lien release, and the satisfaction of judgment is done correctly.
To prevent problems, some judgment owners include an extra fee, in exchange for working and paying, to take care of all the required paperwork and filings. When answering a demand release request or a payoff statement, they include their charge, to get a certified copy of the satisfaction of judgment, and record it at the county recorder, and send the title company a copy of the recorded documents.
Here is an example of a lien release I have used:
Your Name (your capacity - assignee of record or judgment creditor)
Your Address
Your City, State, Zip
Your Phone Number and Email
SUPERIOR COURT OF THE (YOUR STATE) OF YOUR STATE
COUNTY OF (YOUR COUNTY), YOUR DIVISION (small claims, civil, etc.)
Case # 123456789
RELEASE OF JUDGMENT LIEN CCP 697.370
Paul Plaintiff
vs.
Dan Defendant
The undersigned hereby releases from the judgment lien described herein, all of the interests in the real property in YOURCOUNTY County, presently owned or hereafter acquired of the herein named judgment debtor subject to the lien.
The lien released, is in the name of Dan Defendant, from the judgment lien recorded February 12, 2009, as instrument number 99-99-999999 as recorded in the office of the County Recorder of YOURCOUNTY County, YOURSTATE, described as:
Lot 17, Tract Number 999, in the City of Debtorville, and County of YOURCOUNTY in the state of YOURSTATE, as per the map recorded in book 99, page 99 in the office of the County Recorder of YOURCOUNTY, commonly described as 99999 Debtor Street, Debtorville, CA 99999, having an assessor parcel number of: 99-CA-9876544.
Executed at: __________________________ this 11th day of April, 2011
By: _________________________________ YOUR NAME (Capacity).
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http://www.JudgmentBuy.com - where Judgments and debts quickly get recovered by the best - matched for free.
Mark Shapiro, with the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
Friday, December 16, 2011
The Top Ten Judgment Problems
I am not a lawyer, I am a Judgment and Collection Agency Broker. This article is my opinion, based on my experience in California, and laws vary in each state. If you ever need legal advice or a strategy to use, please contact a lawyer.
Judgments are not guaranteed, they are only chances for getting some money in the future. When the economy was good, judgments were sometimes a way to get money. Now they are only a chance of getting some money.
In the ideal situation, your judgment debtor is wealthy and will repay your judgment after getting a single polite reminder. That is not the case 99% of the time. Most of the time, judgments are never enforced. If they are enforced, it is a slow process that often involves compromise, and partial recoveries more often than full recoveries.
Here are the top ten reasons many judgments are never recovered:
1. The debtor can file for bankruptcy protection. Once a debtor files for bankruptcy protection, all creditors must stop all collection activities, at least until they later get written permission from the bankruptcy court. While there are exceptions, most of the time, bankruptcy kills judgments.
2. The debtor can die. While it is possible to show your judgment to the executor of the dead person's estate, when there are no assets left, you will not get paid. Most often, you either get nothing or must settle for a fraction of what is owed.
3. The debtor can go underground, hide assets, or be poor. When you sue a debtor using a fake name, or when the debtor is a professional fraud that keeps most of their assets in names that cannot be traced to them, or is really poor, most of the time, that means a judgment against them cannot be enforced.
4. The debtor can move. It is not cheap or easy to domesticate judgments to another state. Some states make it extra hard for creditors, Florida being one of the worst. Some states impair judgment recovery with laws that specify that small claim cases cannot be assigned, or one must be a lawyer to recover any judgment, even a $100 one.
5. The debtor can become sick or get hurt. Disability (and social security) income cannot be reached by creditors, and disabled debtors often lose their ability to earn income.
6. The debtor can file an exemption claim. Every State has exemptions for a debtor's personal property. If the debtor files an exemption claim, you must show up at the hearing. If you do not show up, the debtor wins.
7. The debtor can vacate the judgment. Especially with default judgments, asking the court to vacate a judgment is cheap and easy. The debtor may not win, however if you do not show up, the debtor wins.
8. The debtor can claim "it's not me". Especially when the debtor has a very common name, or grandpa, dad, and son, all have exactly the same name; it can be difficult to recover a judgment. It can take too much time and money to prove who is the actual debtor.
9. The debtor can hire a lawyer. Some debtors would rather spend $10,000 on lawyers, than pay $5,000 to satisfy the judgment against them.
10. The debtor can have many previous judgments and liens. When a debtor has a bunch of judgments against them already, most judgment enforcers will not even try to recover a judgment against the debtor. This is not always fair, because the first one to recover the judgment wins, even if there are 20 other unsatisfied judgments against the debtor.
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http://www.JudgmentBuy.com - where Judgments and debts quickly get recovered by the best - matched for free to your debtor.
Mark D. Shapiro - the judgment expert, with the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
Judgments are not guaranteed, they are only chances for getting some money in the future. When the economy was good, judgments were sometimes a way to get money. Now they are only a chance of getting some money.
In the ideal situation, your judgment debtor is wealthy and will repay your judgment after getting a single polite reminder. That is not the case 99% of the time. Most of the time, judgments are never enforced. If they are enforced, it is a slow process that often involves compromise, and partial recoveries more often than full recoveries.
Here are the top ten reasons many judgments are never recovered:
1. The debtor can file for bankruptcy protection. Once a debtor files for bankruptcy protection, all creditors must stop all collection activities, at least until they later get written permission from the bankruptcy court. While there are exceptions, most of the time, bankruptcy kills judgments.
2. The debtor can die. While it is possible to show your judgment to the executor of the dead person's estate, when there are no assets left, you will not get paid. Most often, you either get nothing or must settle for a fraction of what is owed.
3. The debtor can go underground, hide assets, or be poor. When you sue a debtor using a fake name, or when the debtor is a professional fraud that keeps most of their assets in names that cannot be traced to them, or is really poor, most of the time, that means a judgment against them cannot be enforced.
4. The debtor can move. It is not cheap or easy to domesticate judgments to another state. Some states make it extra hard for creditors, Florida being one of the worst. Some states impair judgment recovery with laws that specify that small claim cases cannot be assigned, or one must be a lawyer to recover any judgment, even a $100 one.
5. The debtor can become sick or get hurt. Disability (and social security) income cannot be reached by creditors, and disabled debtors often lose their ability to earn income.
6. The debtor can file an exemption claim. Every State has exemptions for a debtor's personal property. If the debtor files an exemption claim, you must show up at the hearing. If you do not show up, the debtor wins.
7. The debtor can vacate the judgment. Especially with default judgments, asking the court to vacate a judgment is cheap and easy. The debtor may not win, however if you do not show up, the debtor wins.
8. The debtor can claim "it's not me". Especially when the debtor has a very common name, or grandpa, dad, and son, all have exactly the same name; it can be difficult to recover a judgment. It can take too much time and money to prove who is the actual debtor.
9. The debtor can hire a lawyer. Some debtors would rather spend $10,000 on lawyers, than pay $5,000 to satisfy the judgment against them.
10. The debtor can have many previous judgments and liens. When a debtor has a bunch of judgments against them already, most judgment enforcers will not even try to recover a judgment against the debtor. This is not always fair, because the first one to recover the judgment wins, even if there are 20 other unsatisfied judgments against the debtor.
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http://www.JudgmentBuy.com - where Judgments and debts quickly get recovered by the best - matched for free to your debtor.
Mark D. Shapiro - the judgment expert, with the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
Tuesday, December 13, 2011
Debtor Exam Turnover Orders
I am not a lawyer, I am a Judgment and Collection Broker. This article is my opinion, based on my experience in California, and laws vary in each state. If you ever need legal advice or a legal strategy to use, please contact a lawyer.
This article is about using one specific type of turnover (turn over) order that can be used (in many states) at the conclusion of judgment debtor examinations. A turnover order may possibly get the creditor paid from cash, or the equivalent of cash, that the debtor owns and possesses while at the court.
Turnover orders for cash at judgment debtor exams, are cheap and easy. They are requests to the court, for them to order a judgment debtor to turn over their non-exempt cash to you, to help satisfy a money judgment.
At the end of this article, is a template example of this kind of turnover order for cash at a judgment debtor exam. One brings several copies of a nearly-completed turnover order to the court to use at the conclusion of the debtor examination.
Not all states allow turn over orders. In California, simple cash turnover orders are supported by CCPs 482.080 and 708.205. When used immediately after a judgment debtor examination, one does not have to serve the judgment debtor, or pay for a new hearing.
Look up the laws of your state, and print out any laws relevant to judgment debtors turning over property to you or the levying officer after an examination. Be ready to refer to your local laws, and to possibly quote them in court.
Experienced judgment debtors know better than to bring large amounts of cash to debtor exams, however some do, so be prepared.
Anything other than cash, requires a current writ and an open sheriff levy file. Non-cash assets must always be turned over to the sheriff first.
While turnovers of cash may not require a writ or to have a sheriff levy file open, why not cover all your bases. You never know what you might discover. Non-cash turnover orders are beyond the scope of this article, please see my other articles.
At the conclusion of a judgment debtor examination, you can ask the judgment debtor how much cash they have in their wallet, pockets, briefcase, or purse. If the debtor complies, write the amount down. If they refuse, that is ok. At the end of the exam, politely mention to the bailiff that you want to ask the judge to consider a quick matter.
If the judgment debtor showed you the cash in their wallet, write that amount down on your turnover order. Then, politely ask the judge to sign your turnover order.
If the debtor refuses to tell you how much cash they have, say something like "Your honor, I have asked the judgment debtor to disclose the contents of their wallet. They have refused, and per the laws of our State (recite the numbers of the laws, not the laws themselves) the debtor should be required to disclose to the court what is in their wallet, so I may ask the court to sign my turnover order."
What happens next cannot be predicted. Sometimes the debtor complies immediately, sometimes they make up stories and lies, for example, their cash belongs to someone else, etc.
It is usually best to show the court you are reasonable, and compromise when appropriate. Usually, the judge will order the judgment debtor to give their cash to the bailiff, and then the bailiff hands it over to you.
Here is an example of a turnover order I have used for the debtor's on-hand cash, at the conclusion of a debtor examination:
Your Name (your capacity - Assignee Of Record or Judgment Creditor)
Your Address
Your City, State, Zip
Your Phone Number and Email
Appearing In Pro Per
SUPERIOR COURT OF THE (YOUR STATE) OF YOUR STATE
COUNTY OF (YOUR COUNTY), YOUR DIVISION (small claims, civil, etc.)
Paul Plaintiff Case # 123456789
TURNOVER ORDER; POINTS and AUTHORITIES
vs.
Date: July 18, 2010
Dan Defendant Time: 9 AM
Department 12
Judge: John Jones
At the date and time above, DAN DEFENDANT, the judgment debtor and defendant herein, was examined. At the conclusion of the examination, the judgment debtor was in possession of cash in the amount of (list the cash amount) that may be used to help satisfy the judgment debt as per CCPs 482.080 and 708.25.
Pursuant with the Declarations and Points And Authorities submitted by (plaintiff/assignee of record), and finding that a writ of execution has been issued, and there is a need for this order, for good cause, the court hereby ORDERS that the non-exempt property listed above, be turned over to the (plaintiff/assignee of record) which shall be applied toward the satisfaction of the judgment.
Dated: ____________ Signed _______________________________________
Judge Of the Superior Court
POINTS AND AUTHORITIES
Copy, and include the full text of CCP 482.080 and 708.205 here.
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http://www.JudgmentBuy.com - where Judgments and debts quickly get recovered by the best - matched for free to your debtor.
Mark D. Shapiro - the judgment expert, with the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
This article is about using one specific type of turnover (turn over) order that can be used (in many states) at the conclusion of judgment debtor examinations. A turnover order may possibly get the creditor paid from cash, or the equivalent of cash, that the debtor owns and possesses while at the court.
Turnover orders for cash at judgment debtor exams, are cheap and easy. They are requests to the court, for them to order a judgment debtor to turn over their non-exempt cash to you, to help satisfy a money judgment.
At the end of this article, is a template example of this kind of turnover order for cash at a judgment debtor exam. One brings several copies of a nearly-completed turnover order to the court to use at the conclusion of the debtor examination.
Not all states allow turn over orders. In California, simple cash turnover orders are supported by CCPs 482.080 and 708.205. When used immediately after a judgment debtor examination, one does not have to serve the judgment debtor, or pay for a new hearing.
Look up the laws of your state, and print out any laws relevant to judgment debtors turning over property to you or the levying officer after an examination. Be ready to refer to your local laws, and to possibly quote them in court.
Experienced judgment debtors know better than to bring large amounts of cash to debtor exams, however some do, so be prepared.
Anything other than cash, requires a current writ and an open sheriff levy file. Non-cash assets must always be turned over to the sheriff first.
While turnovers of cash may not require a writ or to have a sheriff levy file open, why not cover all your bases. You never know what you might discover. Non-cash turnover orders are beyond the scope of this article, please see my other articles.
At the conclusion of a judgment debtor examination, you can ask the judgment debtor how much cash they have in their wallet, pockets, briefcase, or purse. If the debtor complies, write the amount down. If they refuse, that is ok. At the end of the exam, politely mention to the bailiff that you want to ask the judge to consider a quick matter.
If the judgment debtor showed you the cash in their wallet, write that amount down on your turnover order. Then, politely ask the judge to sign your turnover order.
If the debtor refuses to tell you how much cash they have, say something like "Your honor, I have asked the judgment debtor to disclose the contents of their wallet. They have refused, and per the laws of our State (recite the numbers of the laws, not the laws themselves) the debtor should be required to disclose to the court what is in their wallet, so I may ask the court to sign my turnover order."
What happens next cannot be predicted. Sometimes the debtor complies immediately, sometimes they make up stories and lies, for example, their cash belongs to someone else, etc.
It is usually best to show the court you are reasonable, and compromise when appropriate. Usually, the judge will order the judgment debtor to give their cash to the bailiff, and then the bailiff hands it over to you.
Here is an example of a turnover order I have used for the debtor's on-hand cash, at the conclusion of a debtor examination:
Your Name (your capacity - Assignee Of Record or Judgment Creditor)
Your Address
Your City, State, Zip
Your Phone Number and Email
Appearing In Pro Per
SUPERIOR COURT OF THE (YOUR STATE) OF YOUR STATE
COUNTY OF (YOUR COUNTY), YOUR DIVISION (small claims, civil, etc.)
Paul Plaintiff Case # 123456789
TURNOVER ORDER; POINTS and AUTHORITIES
vs.
Date: July 18, 2010
Dan Defendant Time: 9 AM
Department 12
Judge: John Jones
At the date and time above, DAN DEFENDANT, the judgment debtor and defendant herein, was examined. At the conclusion of the examination, the judgment debtor was in possession of cash in the amount of (list the cash amount) that may be used to help satisfy the judgment debt as per CCPs 482.080 and 708.25.
Pursuant with the Declarations and Points And Authorities submitted by (plaintiff/assignee of record), and finding that a writ of execution has been issued, and there is a need for this order, for good cause, the court hereby ORDERS that the non-exempt property listed above, be turned over to the (plaintiff/assignee of record) which shall be applied toward the satisfaction of the judgment.
Dated: ____________ Signed _______________________________________
Judge Of the Superior Court
POINTS AND AUTHORITIES
Copy, and include the full text of CCP 482.080 and 708.205 here.
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http://www.JudgmentBuy.com - where Judgments and debts quickly get recovered by the best - matched for free to your debtor.
Mark D. Shapiro - the judgment expert, with the best quality free leads for enforcers, collection agencies and contingency collection attorneys.
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