When it comes to collecting the amount you are owed as a creditor, there are various areas that the IBC Law Firm can assist you in. Whether it’s a matter of assistance in getting paid from a personal relationship or an issue regarding a business matter as well. We take on both creditors and debtors ensuring that the process of collecting is done efficiently. Often times there is plenty of miscommunication and unethical behavior in regards to collecting debt and seeking a legal professional ensures that everything is done properly. There are a wide range of circumstances that need legal attention and we are ready to assist in all of your collection troubles. Here are the most common ways creditors collect their judgments from debtors.
Wage Garnishment
Most creditors will go after debtor’s paycheck, through a wage garnishment. A wage garnishment is a very effective technique to collect money for a creditor if a debtor receives a regular paycheck. Federal law allows the creditor to take up to 25% of net earnings or the amount by which weekly net earnings exceed 30 times the federal minimum wage (currently $7.25 an hour times 30, equals $217.50).
Property Liens
One collection device commonly used by creditors is the property lien. In Arizona, the creditor must record the judgment with the county, and then the recorded judgment attaches a lien on the debtor’s real property. The creditor will be able to get a lien on the debtor’s personal property by recording the judgment with the secretary of state. This normally applies only to property with title, such as a car or a business’s assets.
Property Levies
A creditor can get a “writ of execution” from the court and go after the debtor’s property. “Levy” means a sheriff or marshal takes the property or instructs the holder of the property (a bank, for example) to turn it over to the officer.
Debtor rights
Just because you are a debtor that owes money to another person, a bank, credit card company, landlord or another party doesn’t mean you were deprived of your legal rights. Debtor-creditor laws explain the legal rights of debtors and creditors. If you’re being disturbed by collection agencies and debt collectors, talk to our debtor and creditor attorney who can help you enforce your legal rights while also explaining your debt relief options. The Fair Debt Collections Act explains that collectors are required be fair and to treat you with respect. It is your right to be protected against threats, excessive calling, etc.
Often, a judgment issued by the court will schedule periodic payments. If you violate a court order, the creditor can seek a contempt order. You could be fined, sentenced to community service, or, in theory, at least, the judge could issue a warrant for your arrest and you could be jailed. Our lawyer can discuss the pros and cons of debt settlement, garnishment, liens, bankruptcy and other solutions.
