Collecting a judgment can be quick and easy or take years to achieve. What’s uncollectible today may be collectible tomorrow. This article will discuss short and long-term strategies for completing the business collection process.
Short-Term Plan For Collecting Your Judgment
Sometimes the collection process is a sprint. If you can find bank accounts or other assets to satisfy your judgment, grab them now. First seize what you can find without the defendant’s knowledge, and then send formal demands for information (called post-judgment discovery) and seize whatever assets the defendant reveals to you.
Long-Term Plan For Collecting Your Judgment
Other times, the process is a marathon. A judgment is good in New Jersey for 20 years and renewable for another 20. In many cases, the collection process rewards patience.
First, if your asset searches are initially unproductive, you can try again later. Circumstances may change, and a customer that’s strapped today may be flush tomorrow. If the customer’s still in business, you can search for bank accounts or other assets throughout the life of your judgment.
Second, if you record a judgment lien, you can wait passively to get paid. A judgment lien attaches to any real estate interest the defendant owns or later-acquires throughout the state. For example, your customer may own its location, or if you have a judgment against the owner (like on a personal guarantee), he may own his home and other properties. It can take years, but the defendant can’t normally sell, refinance, or get a mortgage without paying off your lien.
Getting paid today is better than tomorrow, but tomorrow is better than never. The long duration of your judgment, combined with the judgment lien, gives you multiple chances to collect when current assets are unavailable.
For more information on the accounts receivable collection process, or if you’d like to discuss a specific collection issue, call me at 856-667-1669 or contact me here.
This material is for informational purposes only and should not be construed as legal advice. No person should rely on this information without seeking the advice of an attorney.