The winning party in a civil lawsuit may be faced with the task of collecting a monetary award. Whether an individual or an organization, the party can choose to attempt collection in-house. A second option is to turn the collection over to an attorney. A third option, and perhaps the best one, is to hire a judgment collection agency.
It is often said that winning a monetary judgment is a lot easier than collecting it. Such sentiments make perfect sense when you understand that courts rarely get involved in enforcement efforts. They are there for court proceedings and legal manoeuvrings, but winning parties are left to their own devices when it is time to enforce monetary judgments.
A lack of court involvement only makes collection more challenging. Attorneys can do the job, but experienced collection agencies can do it better. With that in mind, here are five very good reasons to hire a judgment collection agency, complements of Salt Lake City’s Judgment Collectors:
1. Collection Expertise
A collection agency’s bread and butter is recovering unpaid debts. In the case of an agency like Judgment Collectors, they are even more specialized to focus only on judgments. They have a kind of expertise that general collection agencies and attorneys do not possess.
An obvious exception is an attorney who specializes in judgment collection. But such attorneys are the exception to the rule. Most of the time, if you want expert help with a judgment, you need to go to a specialized collection agency.
2. Eliminating Wasted Time
Many organizations attempting to collect a judgment in-house have ended up wasting precious time on a failed endeavor. Time is an asset you cannot get back. So if you’re putting time into judgment collection but seeing no results, can you justify continuing to invest time in the effort?
Turning a judgment over to a collection agency frees up that time. It gives an organization more time to concentrate on the things that matter most. Getting one’s time back is something that is hard to quantify.
3. Stress Reduction
Judgment collection can be especially stressful for individuals, sole proprietors, and small businesses with only a few employees. It is a stress that no business owner needs. The great thing about hiring a collection agency is that doing so immediately reduces the stress. The collection agency manages all the headaches while the individual or organization gets on with things.
4. Improved Cash Position
Collecting outstanding judgments costs money. The people doing the work have to be paid. There are expenses related to court filings. Sometimes there are fees associated with searching property records. Organizations typically cover the expenses from their cash resources. Bringing in a collection agency changes that. The agency covers all its own costs, freeing up cash for other purposes.
5. Greater Chances of Success
Finally, the greatest chances of success lie with an experienced collection agency or attorney. Organizations or individuals attempting to collect on their own do not necessarily have an adequate knowledge of how to go about it. They don’t understand how the system works or the tools they have at their disposal. As a result, the vast majority of judgments are never fully enforced.
On the other hand, a judgment collection agency knows the system inside and out. But that’s not all. Judgment collection agencies also have access to a variety of tools that help them be better at what they do. At the end of the day, organizations stand a far better chance of getting paid by turning their judgments over to a collection agency.
