How does a landlord go about collecting a money judgment from a tenant who's gone bad? Contrary to popular belief, these judgments can be collected, leaving you with more than just a tax write-off, but it will take a little effort and perseverance.
First of all, the term “money judgment” can be defined as a court mandate that one party is legally entitled to collect a certain amount of money from another, but the collection is up to the winning party.
This is about the time when I should warn you that each state does have their own regulations when it comes to collecting judgments, so landlords should consult with a local collection agency or attorney to determine their own state's laws. There are many ways to collect a judgment, some more expensive (and sometimes effective) than others, so it helps to do a little homework.
That all being said, there are some recurring themes in the judgment collection process. It begins with the winning party recording the judgment among the public records of your jurisdiction, which you can do yourself or hire an attorney to handle for you. Once recorded, you have to apply through the court for what's called a Writ (or Order) of Execution, which will make the judgment appear on the tenants' credit report. As you're probably aware, judgments can ruin your credit, so this is sometimes enough to compel the tenant to pay up.
Sometimes, judgments can attach as liens against tenants' property, such as a car, or real estate (in the unlikely event they own any), and sometimes even their wages. There's a catch, though: you have to know what their assets are!
So, the trick is discover their assets BEFORE you even have a problem with them, by having them disclose them when they fill out a rental application (if you don't have one, see the Resources Box below for a free rental application). You can hire someone to sniff out a tenant's assets, but it's expensive and usually not cost effective for a small rent judgment.
As long as the tenant does not fall into bankruptcy, a judgment will stay on public record for ten years, but creditors can apply to extend the judgment for an additional ten years if the tenant doesn't pay. So, landlords have up to twenty years to collect judgments, provided they file for an extension before the judgment expires.
Landlords can collect these judgments themselves, or they can hire a collection agency or an attorney to do it for them, depending on their budget and time availability. However you choose to do it, make sure you collect the money that tenants owe you, and collect your judgments!
Methods To Collect Data
You never seem to get enough of time. Even if given thirty hours in a day, most people still won't be able to get enough of it. Somehow, some things will come up and you will end up wanting more time. Time is a precious commodity. Once it's gone, it cannot be recovered.
The fact is: when you are busy, time flies swiftly. But when you are not, time seems to be at a stand still. This is true when you are killing time because there is nothing else to do under the circumstances.
How do you maximize the use of your time? It would be worth your time to consider the following strategies:
1. Check your schedule at the start of the day. Review it in its entirety. You may notice that portions of your day may be hectic, while some may not be too frenzied. Distribute your activities evenly throughout the day.
Keep note pads handy so you can keep track of your schedule. It also helps to remind you of your tasks and commitments. Note pads and schedule notebooks help you avoid overlapping of activities. In case of overlaps, determine which one is priority.
After spreading your schedule for the day and you still feel overwhelmed by the number of tasks to be accomplished, you may have to forego some of them. Re-schedule other tasks for another day.
What you are actually doing is very much like cleaning a closet. When your closet is in order, you avoid being accidentally hit on the head by falling objects upon opening its door. Also, if it is in order, you will likely find spare spaces available.
2. Request for a re-schedule in advance. This is especially true when another person will be affected. Show courtesy by doing this is advance. This leaves time for the person to adjust to the new schedule. Who knows? You may be doing the other parties a favor. They may be in the same predicament as you are, and they will not be aware unless you make it known to them.
3. Be creative. Time is an element when simple creativity can be put to practice. For example, you need to do the laundry but at the same time, you also have to rush and buy some groceries. Perhaps, what you can do is to set your washing machine to do the laundry while you step out to the grocers. Manage your time in the grocery and back home, just in time when the laundry is done.
You can even do the cooking at the same time by using a slow cooker. It cooks food by itself. You can even pick up the kids from school after shopping. Four tasks are combined to one. All it takes is scheduling and a little creativity.
4. When you have to do a certain task for the first time, it is natural for mistakes to happen. However, a first time task doesn't have to be a blunder. If there is no clear direction on how things should be done, take time to plan it out before you take action. This saves time, energy, and money.
5. Visualize the possible outcome of your objective. Seek out alternatives. Choose the better of two or more alternatives. If there is only one option, do it just the same. Some tasks may appear difficult when you think about it, but not necessarily when put into action. The same thing is true the other way around.
Time is something you could never have enough of. You become wise when you choose to maximize it.
Both Brian Davis & Jennifer Stromsteen are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Brian Davis has sinced written about articles on various topics from Legal Matters. Brian Davis is a landlord who has spent more than his fair share of time in rent court and chasing down tenants to collect judgments. As promised, if you're a landlord that needs a rental application, here's a site that offers a. Brian Davis's top article generates over 480 views. to your Favourites.
Jennifer Stromsteen has sinced written about articles on various topics from Real Estate, Brain and Anger Control. J Stromsteen has many years expertise in the finance, real estate, and insurance industry. She contributes to various websites such as where. Jennifer Stromsteen's top article generates over 74000 views. to your Favourites.
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