When a creditor wins a lawsuit and obtains a judgment against a debtor, that victory is only part of the battle. Enforcing that judgment and actually collecting the money owed can often be far more challenging. This is where a skilled collections lawyer steps in. For creditors, a debt collection attorney plays a crucial role in ensuring that court-awarded judgments turn into real, recoverable funds. Continue reading and speak with a seasoned Rochester collections lawyer to learn more.
How Does a Collections Lawyer Help Enforce a Judgment?
A collections lawyer provides legal strategies and tools to help creditors recover what is owed. The process begins with a thorough review of the judgment itself to confirm its enforceability. Once that is clear, the attorney identifies all potential avenues for collection. This can include locating the debtor’s assets through asset searches, which might reveal bank accounts, real estate, vehicles, or other valuable property. The attorney then pursues lawful methods to reach those assets.
Collections lawyers often utilize tools such as wage garnishments, bank levies, and property liens. Wage garnishment allows a portion of the debtor’s paycheck to be directed toward paying the debt. A bank levy enables the creditor to freeze and seize funds from the debtor’s bank account. A property lien, on the other hand, attaches to real estate or other property, which can prevent the debtor from selling or refinancing until the debt is satisfied.
What Legal Challenges Can Arise When Enforcing a Judgment?
While winning a case in court may feel like the end, enforcing a judgment is often where the true complications begin. Debtors may attempt to hide assets or transfer property to avoid payment. Sometimes, they file for bankruptcy, which can significantly complicate the process. A collections lawyer anticipates these tactics and develops strategies to address them.
Additionally, New York has strict laws governing judgment enforcement. Creditors must follow these laws carefully to avoid violating the debtor’s rights. Collections lawyers are familiar with these legal requirements and ensure that every action taken is compliant with state and federal regulations. This helps reduce the risk of the creditor’s efforts being challenged or reversed. Without a lawyer’s guidance, a creditor might inadvertently take steps that delay or even jeopardize recovery.
Why Should a Creditor Hire a Collections Lawyer?
Although it may be tempting to try to collect a judgment without legal help, doing so can waste valuable time and resources. A collections lawyer understands not only the law but also the practical realities of enforcing judgments in New York. They know how to handle court procedures, file necessary paperwork, and pursue the debtor effectively. In many cases, their involvement speeds up recovery and increases the chances of success.
Moreover, creditors gain peace of mind knowing that a professional is handling the matter. The collections process can be stressful and time-consuming. By hiring a lawyer, creditors can focus on their business while the attorney handles the legal complexities. In the end, working with a collections lawyer helps transform a judgment on paper into actual compensation. Contact Lacy Katzen LLP today.
