Recovering money owed can involve making a reminder phone call to the debtor or obtaining a court judgment against the debtor; this judgment grants permission to place a lien against property or garnish wages. Other ways to recover money include engaging the services of a collection agency, using a mediator, offering a settlement agreement and sending a registered letter to remind the debtor of the money owed, according to ProfitGuide.com.Continue Reading
ProfitGuide.com notes that debtors respond better to collectors who are calm and polite rather than angry and threatening. When attempting to recover money, the first step is to contact the debtor directly, via the telephone or a registered letter, to offer the debtor the opportunity to pay the funds. If the debtor refuses, a settlement agreement, where the debtor pays less than the amount owed to settle the debt, can be used. In the event the debtor still does not pay, the creditor can use a collection agency. A collection agency attempts to recover the funds on the creditor's behalf and takes a percentage of the recovered funds as a fee for its services.
The Sader Law Firm notes that funds can be recovered by taking the debtor to court. When a court issues an order for the debtor to pay the funds due, the creditor can take a cash payment or pursue other means of funds recovery. Other options available to the creditor include seizing the debtor's property, garnishing the amount due from the debtor's paychecks and forcing a foreclosure on the debtor's real estate holdings to recover the money from the sale of the property.Learn more about Credit & Lending
A Notice of Garnishment of Personal Earnings form is a document that a court sends to a debtor stipulating the number of days before garnishment begins and how the debtor can object to the garnishment, reports Nolo. The court usually sends another form along with the notice that the debtor can use to detail the grounds for objection to the garnishment.Full Answer >
Collecting a small claims judgment involves giving the debtor an address where he can mail the money, writing a letter to the debtor as a reminder or talking to an attorney for help, explains the California Courts. The court does not assist in collecting the money, so it is the responsibility of an individual to approach the debtor. After winning a case, it is necessary to wait 30 days before collecting the money.Full Answer >
A lien waiver requires a property owner’s name, the owner’s signature, the current date, and a description of the property being constructed or service being rendered. The lien also requires the construction company’s name, current date, and the signature and title of the contractor or subcontractor doing the work. Describe adequately in the document any service or work supplied by an individual or contractor.Full Answer >
A lien release is what happens when a party with an interest in a property, such as a bank that holds a mortgage loan on a house, frees the borrower from any further repayment obligation, according to The Law Dictionary. A lien is a form of contract giving a lender collateral rights over a piece of property, explains Investopedia. Most liens are released when a loan or debt of a specific monetary value is repaid, notes The Law Dictionary.Full Answer >