Decades ago, when I was a much younger man, I remember driving through my in-laws’ neighborhood and seeing a house covered with signs indicating that it would be auctioned within a couple of weeks. A little investigation revealed that the house had been seized for payment of an outstanding money judgment. I wondered why the debtor would allow things to go so far.

The answer to such questions is usually far more complicated than expected. It usually takes a lot to get from a civil dispute between two parties to actual asset seizure and sale. But after years of researching and writing on the topic of judgment collection, I have come to the conclusion that the best possible advice I could give a debtor is to just pay up.

The Basics of Money Judgments

A judgment in a civil court case is essentially a decision rendered by the court. A money judgment is a decision that involves some sort of monetary award. That monetary award becomes a legal debt the losing party is obligated to pay. But it is not just your average, run-of-the-mill debt.

Imagine a homeowner who fails to pay this credit card bill. The credit card company can assess late fees and penalties. They can also freeze the homeowner’s account, thereby preventing him from continuing to charge to the card. They can follow up with phone calls and letters in an attempt to collect the past-due amount.

Without a money judgment backing them up, the credit card company’s options are limited. They can only be so aggressive in trying to collect what they are owed. But a money judgment changes the game completely.

More Aggressive Collection Efforts

Not only does a money judgment establish a legal debt, but it also gives a judgment creditor access to more aggressive collection tools. The creditor’s efforts can now include things like wage garnishment and bank levies. If necessary, the creditor can seek a writ of execution authorizing the seizure and sale of a debtor’s personal property. That is serious stuff.

The house I mentioned at the beginning of this post was being auctioned off to pay an outstanding judgment. I don’t know what the case was about, but I do know that the debtor did not pay what he owed for whatever reason. His property was seized and sold as a result.

When Professionals Get Involved

Personal property being at risk is a very good reason to pay up. But there is another reason: judgment creditors might get professionals involved. What does that mean? Instead of a creditor attempting to collect in-house, they might decide to hire a specialized collection agency like Salt Lake City-based Judgment Collectors.

Judgment Collectors have been working cases in nearly a dozen states for years. They have a reputation for being excellent investigators, skip tracers, and collection agents. If it were me, I wouldn’t want them looking into my income and assets. I would rather find a way to pay, even if that means agreeing to a monthly payment plan.

It Doesn’t Have to Go So Far

If you have been stuck with a money judgment you don’t think you can pay, know this: it doesn’t have to go so far that your personal assets are at risk. The worst thing you can do is fail to cooperate with the creditor.

On the other hand, choosing to work with the creditor as best you can increase the chances that you and the other party will be able to resolve things amicably. Why not try it? The alternatives are not all that attractive.