Trying to collect on outstanding debts can be a frustrating experience for any business owner. While it may be clear the money is owed and the debtor has no argument to the contrary, it may be wise to enlist the services of an experienced New Jersey collections law firm to help determine the wisdom of pursuing a collections action.
It provides little comfort that a judgment confirms the legal obligation of the debtor to pay what is owed; good business practices begin with rectifying a decision with the bottom line of the business. Throwing good money after bad by trying to recover on an uncollectible debt makes no sense. The question your New Jersey collections law firm will answer is, despite the debtor’s unwillingness to pay, are there financial resources to cover the debt?
The existence of sufficient assets in and of itself is not determinative; the assets must be able to be attached to be useful in a collections action. The types of assets that a New Jersey collections attorney suggests as typically exempt from attachment include:
• Life insurance proceeds
• Retirement benefits
• Public assistance benefits
• Unemployment benefits
• Worker’s compensation benefits
If an asset is not exempt, it is fair game for attachment to satisfy a judgment. Although it is not unusual for a debtor to attempt to conceal the existence of assets, a detailed asset report will uncover assets such as:
• Cash, securities, bonds, annuities etc.
• Vehicles, including cars, motorcycles, RVs, boats, airplanes
• Business property
• Business accounts receivable
• Livestock, crops, etc.
• Property belonging to the debtor held by someone else
• Judgments owed to the debtor
• Debts owed to the debtor
It is important to make an educated and informed decision about how to proceed when faced with an uncollected judgment. Begin with a call to Snellings Law LLC at 973.265.6100.