When someone owes you judgment money, complications, and challenges may arise. Perhaps the party is delinquent in payment and making the job harder for you than it should be. In such cases, you might become tired of calling and asking them repeatedly to make the payment. You want to collect your money but also not create a hostile relationship.
If someone owes you money, hiring a collection agency is the best way to get done with the process. However, if you are trying to collect the money on your own, you should be prepared for the tedious process. One way to prepare is to know the various challenges you might come across. To know more, you can click here to speak to an expert.
Possible challenges you will face while collecting a judgment debt
Lack of reliable and updated contact information for debtors.
Modern-day people are in a constant state of change. People are always changing their phones, numbers, addresses, etc. Collecting from someone constantly on the go can be challenging for someone trying to collect a debt. You will have little success in getting your money when you do not even have the current contact information of the debtor.
Maintaining positive relationships.
It is understandable that maintaining positive relationships is difficult when you need money, and the debtor is taking forever to pay you. You do not want to be hostile towards them because that may worsen things instead of making them better. This is a challenge that most people are unable to overcome, but debt collection agencies can get the money while maintaining a positive relationship.
Takes too long to locate the debtor while sorting the data.
Even when you have all the updated information you need to find the debtor, it can still take time to sort your documentation and locate the person. Once you find their most current information, you might find yourself questioning which information will help you reach the debtor the most quickly. Time is money today, and you cannot afford to spend so much of your time on a single account.
Collecting money from someone who has gone bankrupt.
Perhaps the biggest challenge is collecting money from someone who has gone out of business or filed for bankruptcy. When a company or a party files for bankruptcy, debt collection is handled differently, this is when you need to get in touch with an attorney immediately.