After winning a judgment, you still need to collect it. Having the right business records can help you find the debtor’s assets. This article will discuss the records you’ll need to satisfy a business collections judgment.
Enforcing Your Business Collections Judgment — Seizing Bank Accounts
Once you win a judgment in a business collections case, you can seize any property the customer has in New Jersey. Generally, the best assets to seize are bank accounts, since they’re already liquid and you don’t need the Sheriff to sell them. All the Sheriff needs to do is seize the account, which freezes it until you get a Court Order releasing it to you.
Enforcing Your Business Collections Judgment — Finding Bank Accounts
As to finding bank accounts, you may already have the information. This is where having the right records comes into play.
Every time you receive a check or wire payment from a customer, keep a copy of it. These records will tell you where your customer banks, in case you ever need to enforce a judgment against it.
In addition, a good credit application will require the customer’s bank information and tax number. If the credit application is old, the bank information might be outdated, but an investigator can use the tax number to find the customer’s accounts.
After winning a judgment in your business collections case, having payment records and credit applications on file can help you find the assets to enforce it.
For more information on business collections, or if you’d like to discuss a specific collection issue, call me at 856-667-1669 or contact me here.
This material is for informational purposes only and should not be construed as legal advice. No person should rely on this information without seeking the advice of an attorney.