A creditor has the right to collect on past-due balances, and there are several options for compelling a debtor to make a payment. The creditor may go to court to request a judgment, which is a legally enforceable way to secure money from a past-due account. A judgment is only the first step in many cases. A California creditor may have to take steps to enforce the judgment, often with the help of the court.
Making a debtor pay is not an easy process, even with a judgment. An attorney can help a creditor apply the appropriate amount of pressure to a debtor in order to enforce a judgment. Some of the ways to do this include:
- Wage garnishment
- Bank levies
- Assignment orders
- Charging orders
- Property levies and foreclosures
Some of these options may seem extreme. For example, there is an option where a creditor can install a keeper in the debtor’s place of business. This is a sheriff who will collect money from customers instead of the customers giving payment to the business. The sheriff will give it to the creditor for repayment of the debt. Creditors may be unaware of this and other legitimate ways to collect payment from a debtor who owes money.
It is helpful to work with a California attorney who can explain the various legal strategies by which a creditor can collect payment. An assessment of the individual situation can help identify the most appropriate option for enforcing a judgment. With experienced legal guidance, a creditor will be more likely to successfully secure payment on past-due balances.