What’s the difference between pre-judgment and post-judgment collections?

What’s the difference between pre-judgment and post-judgment collections?

On Behalf of | Jun 17, 2022 | Collections

There are several options for collecting commercial debts. The best choice will likely depend upon a variety of factors. The first question to ask is whether it is: Do you seek a pre-judgment writ of attachment before court judgment, or do you wait for the court judgment, which means it is a post-judgment collection?

The benefits of a pre-judgment attachment

The goal is to get paid. So, those seeking to collect a commercial debt may want to be at the front of the line to better ensure they are paid before the debtor runs out of assets. A pre-judgment writ of attachment attaches your claim to a sufficiently valuable asset to cover the debt. The action prevents the debtor from using or selling the asset. Prejudgement attachments are used for various assets, including bank accounts, real property, equipment, and inventory.

Post-judgement collection

Once the court issues a judgment, the debtor may decide to pay the debt. Conversely, they may also appeal the decision. They may also do nothing at all. If they do nothing, you can take legal action to seize known assets, look for hidden assets, place a lien on real property or take other steps for judgment enforcement. There may be other injunctions or post-judgment litigation.

Which is better?

The circumstances behind the situation will vary on a case-by-case basis. Taking a strategic approach in weighing options can be the difference between a quick and positive outcome or something that is drawn out with further court costs and additional legal actions. Working with someone who understands the options and knows the laws can be beneficial in determining the best possible outcome.