Many clients ask whether or not they should proceed to collections or secure a Judgment? Why is securing a Judgment always the better option?
Collections & Limitations
Without a judgment, you have an unsecured debt that cannot be enforced legally through the courts, and instead, you must rely upon voluntary payments. After the statutory limitation period of (generally 2 years) your debt becomes unenforceable, and the debtor doesn't have to pay you any more. The statutory limitation period is consequential to business and people who are owed money. Once you get a judgment, a judgment lasts forever, and there is no statutory limitation period. To learn more about statutory limitations click this link to the law:
Judgments Last forever.
Once you secure a judgment, the judgment lasts for ever, and you can collect the judgment once the debtor receives assets. It is important to always secure a judgment rather than waiting for voluntary payments.. and yes, a Judgment can be posted to the individuals credit report.
.png)
תגובות