Debt collections is a process, not an event. When you send your collection matters to the Law Offices of Howard Peritz, we will send one and only one demand letter to the debtor. If the debtor responds, we attempt to resolve the debt by payment or payment plans. WE WILL NEVER DISCOUNT THE DEBT without permission from you, our client.
In the event the debtor fails to respond to our letter
(and this happens frequently), we will obtain your permission and file suit. Once the suit is filed, we attempt to obtain judgment by default, summary judgment or judgment on the pleadings where possible. If it is not possible, we are prepared to go to trial. While this happens rarely, it does happen on occasion.
Once we get judgment against the debtor, there are further steps that must be taken. A judgment is merely a court order that gives us the right to take further legal action. In the event the debtor owns real estate, we will record a memorandum of judgment against the real estate. This means that the debtor will not be able to sell or refinance the real estate without paying the judgment WITH INTEREST.
We can also file garnishments or citations to discover assets on the debtors employer, banks or any third party that owes the debtor money. We can also file a citation to discover assets against the debtor requiring him/her to appear for a deposition, under penalty of perjury, as to assets and require the debtor to produce documents such as bank statements and income tax returns.
If the Debtor refuses to appear for post-judgment deposition, after following certain steps, the debtor can be jailed for contempt. Although we do not have debtor’s prisons, a citation to discover assets is a type of Court Order and failure to appear constitutes Contempt of Court and judges can and do jail people who disobey their orders.