Debt collection activities often start with warning letters and phone calls but may eventually culminate in litigation. When debtors do not respond appropriately to early collection attempts, creditors may have few options other than taking legal action.
A debt-related lawsuit can lead to a judgment in favor of a creditor. That judgment may pave the way for different collection activities that may prove more helpful than constant communication. What collection options become accessible after a successful debt lawsuit?
The law authorizes numerous judgment-related remedies
There are several types of aggressive debt collection actions that typically require a judgment before they are an option. Many creditors pursue wage garnishment. They can intercept a portion of an individual’s wages, provided that they earn enough money, to recoup the debt owed.
It is also possible to seek a levy against a financial account, sometimes called a bank account garnishment. A levy prevents the account holder from withdrawing funds. Depending on the amount of the debt, multiple levies may be necessary to preserve and collect enough capital.
Other times, reports may agree to place a lien against a person’s home or other valuable property as a means of securing the debt and facilitating more effective collection efforts in the future. If the debtor fails to pay, the creditor can seize or liquidate the security property in some cases.
Appropriate legal action can have a profound positive impact on businesses struggling to collect from people who want to avoid their financial responsibilities. Working with a debt collection attorney can help businesses identify the most effective means of holding debtors accountable for an amount that they owe.