Post Judgement Debt Collections
“No Recovery—No Fee”
The Forcible Detainer (eviction) returns possession of the rental property to the landlord and it also serves as a basis of obtaining a judgment against the tenant for past due rent and damage to the rental property.
The written order signed by the Forcible Detainer judge is strong, irrefutable evidence of the past due rent owed to the landlord. Damages, however, must be documented by the landlord and submitted to our firm if the landlord wants us to attempt collection of the past due rent together with damages.
Depending upon the amount and the number of the landlord’s claims, our firm will file a claim in Small Claims, District or Circuit Court for the amount due to the landlord. Once we obtain judgment on the claim we will pursue collection of the debt within the limits of the Fair Debt Collection Practices Act.
Without question, collecting a judgment from a tenant who has not paid his rent is one of the most difficult tasks facing a landlord or a lawyer. Locating a debtor’s employment, or assets, if any, requires a great deal of time and skill. It is a work intensive process and the results are very uncertain.
The process becomes even more complicated when the tenant moves out of the jurisdiction where the judgment was obtained.
Our firm pursues collection of tenant’s debts based on a contingent fee basis and our fee is 50% of the amount we collect. Landlords are required to pay the up-front court costs of filing the claim and we will appear in court at no cost to the landlord. Our no cost appearance, however, is made with the understanding that we are entitled to 50% of any recovery.
Up-front court costs would be approximately $100 to $200 for filing fees, court copies, and constable or sheriff fees to serve the defendants (tenants). Before you decide to invest additional court fees you should decide if you think the amount is worth pursuing. You know your tenant and the likelihood of collection much better than us.
Our firm works closely with all the major credit bureaus. Credit bureaus are an important part of our collection effort because at some point, the debtor may have to “clear” our judgment from his or her credit record in order to buy a new vehicle or rent another property.
When necessary, wage garnishments are issued against the debtor and legal action can be taken to levy bank accounts or have property seized and sold by the court. However, most delinquent tenants have few assets to attach.
*Client must pay Court Costs, Filing Fees, Constable or Sheriff Fees and Garnishment Fees