What ways can I collect after winning in small claims court? Can I hire someone & pay with % of recovery.?

Question

I have won a claim against a contractor who didn't honor his warranty. What is the best way to collect? Can I use a collection agency?

Answer 1

Brian, there are several ways to collect a small claims settlement / Judgement.
1. You can go to the individule and request they pay.
2. You can get their account information from the bank they use. Key knowing their bank. this must be done through the court clerk.
2b. You can garnish their account by filling paper work at the court house with the court clerk.
3. You can pay a fee and have a sheriff go in and take the money they keep on hand in a place of buisness and he will take like 70-75% of what is owed out of that money and return the rest to the owner. This must all be done in accordance with state and local guidelines though, if you do not follow the proper method at the appropriate time you can be sued or have to forfeit you judgement awards.
4. Most court clerks if you are polite will tell you what papers you can file and give you details on how to avoid misusing the methods availible.
5. You usually have to give person notice in writting that you are attempting to collect a debt before you can garnish or use any of the other methods. You must use the appropriate words in your letter though or it gives them grounds to dispute your collection methods.

6. One thing to keep in mind. If it is a buisness that owes you. try to investigate where they keep their payroll and at what times they write their employee's checks. This information is helpful when choosing an account to garnish. They always have money in a payroll account the day before checks are submitted so use that date as a good rule for what time to garnish. You can always look for aluminum cans in the trash near their office for extra cash, and who knows you might find something more helpful. I used to throw my pay stubs away.

Be sure and investigate what you do based on what state and county you are in each has different rules. You can do this via internet or library.

I hope this helps. I have had to garnish once. It was time consuming but worth it .

Answer 2

brent f said: They always have money in a payroll account the day before checks are submitted.
That is NOT true. I once worked for a company that told everyone up front that the payroll account was EMPTY until 8:00am on payday. Any attempt to cash a check before then would result in immediate loss of job. I also know that banks offer businesses what is known as a 'zero-balance' account. The short description is, the payroll account NEVER has a balance. Transactions to the account are cleared against the companies 'master account' each night.

Answer 3

Thats the hardest part. I also won in small claims. The court will assign you an officer that will help collect, but the onus is on you to provide the necessary information. Specifically....

Do you have his company EIN, or his SSN
Bank Account numbers
property or assets in his name.

If you can give the court officer the above, you stand a good chance of getting your money.

Answer 4

Brent's #6 was the first I trick ever heard. You liened the payroll bank account on pay day. The account is viewed as having no money and the employee's pay checks get bounced all over town. Tends to get the employees very POd and they get the attention of the business owner to pay you.

Answer 5

Well depends how good you manipulate them in court and if you even try because those scumbags are hard to convince sometimes...