There are many ways for creditors to push someone who has fallen behind on their scheduled payments. Often, basic collection efforts can bring a past-due account back into good standing. A phone call advising someone that an account will shortly go to collections might be enough to prompt them into taking responsibility.
Unfortunately, sometimes phone calls and letters aren’t enough to push someone to pay their debts. Sometimes, creditors have no choice but to turn to the civil courts to secure repayment. What are two of the ways that the civil courts help creditors?
Judgments that lead to wage garnishment
Individuals who don’t make good on their financial obligations to others may eventually face enforcement actions. When a creditor takes a borrower or debtor to court, a judge can potentially issue a garnishment of that individual’s wages.
A wage garnishment will mean that the creditor gets direct payment by intercepting a portion of someone’s paycheck rather than waiting for them to voluntarily send money.
An estate claim when someone dies
Debt doesn’t just go away when someone dies. New Jersey has laws that protect the rights of creditors. Even when someone’s estate doesn’t have enough money to cover all of their debts and provide resources for family members, the rights of creditors to repayment will usually be more important than the rights of surviving family members to receive an inheritance.
Pursuing an estate claim in the New Jersey probate courts can be an efficient means of securing repayment if an individual died without making good on their financial obligations.
Learning more about debt collection options for businesses will help organizations struggling to balance their budgets because of past-due accounts.