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Once a creditor secures a judgment against a debtor, there are many tools available to collect the debt. Some common tools include bank garnishments, wage attachments, and writs of execution. However, for wage attachments to be successful, the debtor needs to be a person (as opposed to a corporation) and gainfully employed. If this is the case, wage attachments are an important debt collection tool. Each jurisdiction has its own rules for obtaining and recording wage attachments. To initiate the process, you must first fill out and submit a number of forms to the court. Once the court approves your... Read More

If you have taken someone to court and you won the case, you now have a judgment against an individual or a company.  You may think that you should begin to receive compensation for your losses.  If only life were that easy!! Successful judgement execution can be very difficult. The time that you can execute on the judgment varies by state.   For example, you cannot execute on a court ordered judgment in Maryland for 10 days.  This delay gives the debtor time to appeal the ruling.  After 10 days, you can proceed with execution on the judgement. Writ of Execution Assuming the debtor still refuses... Read More

Having trouble collecting your delinquent accounts receivables or loans? Regardless whether you are a company or an individual extending credit, what you need to do is have a process in place to carefully manage your credit. This article explains 4 common mistakes to avoid when extending credit. Avoiding these mistakes can help you avoid and/or collect bad debts. Mistake 1–Not Doing Research on Your Debtor before Extending Credit Mistake 2–Not Having a Written Agreement Your credit agreement should be precisely worded. It should contain all of the provisions needed to collect the debt. Some common things to include in the... Read More

Having trouble collecting your delinquent accounts receivables? If you are a company and you want to stay in business, one of the first things that you need to do is carefully manage your accounts receivables. Moreover, if you are having difficulty collecting a consumer debt against an individual, you must also understand how the FDCPA impacts creditors.  What is the FDCPA? The Fair Debt Collection Practices Act (FDCPA) is a law that sets forth guidelines for the collection of consumer debts by collection agencies and collection attorneys. Additionally, it was meant to stop harassment of debtors by debt collectors. The FDCPA does... Read More

Are you a creditor and you just found out that your debtor declared Chapter 7 bankruptcy?  You probably find it confusing and you are not sure what you need to do next.  We can help.  First, read my earlier article on bankruptcy. Then review this article on assessing creditor rights under Chapter 7 bankruptcy. Chapter 7 is the most common form of bankruptcy in the United States.  Quite simply, the purpose of a Chapter 7 bankruptcy is to have a trustee sell the assets of a debtor and pay creditors.  The trustee pays secured creditors first.   Immediately afterwards, the trustee pays unsecured creditors if... Read More