Workers Compensation Attorneys

America runs on debt — everyone owes money to someone else. If you are the person repaying the debt, it can be stressful and disheartening to part with your hard-earned money. In some cases, though, collecting a debt owed to you can be equally stressful and frustrating. Some debtors will not repay what they owe, which means you need to seek court intervention.

What happens after you go to court and win a civil judgment against the debtor? Is the problem solved? Unfortunately, not always. As the “judgment creditor,” it is still up to you to enforce the judgment and collect from the “judgment debtor.” Therefore, it’s important to understand your options.

Finding the Debtor’s Assets

Most creditors would prefer to be paid in a lump sum (or as close to a lump sum as possible). Assuming that the debtor doesn’t offer up the money owed voluntarily, you’ll need to learn what assets he or she has that could satisfy the debt.

After issuing the judgment, the court may require the debtor to fill out an asset disclosure statement to make the collections process easier (with the debtor risking a contempt of court charge if he fails to comply). If this step was not completed, however, you may be able to request that the court recall the debtor by issuing an order of examination. This is similar to an asset disclosure form but involves more of an interview process.

In terms of ease of collection, the assets creditors are often interested in include:

• Money in checking, savings, or investment accounts
• Cash
• Money from an inheritance or trust (if the debtor is named as a beneficiary)
• Real estate (especially a secondary residence like a vacation home)
• Personal property
• Daily profits from a business (especially if the debtor is a business)

Payments Over Time: Wage Garnishment

In many cases, debtors may not have the money or equivalent assets to settle a debt all at once. Therefore, you’ll need to consider enforcing repayment over time. One of the most reliable methods is wage garnishment. You can petition the court to garnish the defendant’s wages, which would result in garnishment paperwork being sent to the debtor’s employer. Federal law caps garnishment at 25 percent of a debtor’s net earnings. Depending on the amount owed and the defendant’s compliance (or lack thereof) up to this point, the percentage may be lower, but it almost certainly cannot be higher than 25 percent for most civil judgments.

What if these steps don’t solve the problem? In the majority of cases, the methods above will be adequate to enforce a civil judgment against a debtor. Of course, some debtors are determined not to repay what they owe (or cannot afford to do so). If you find yourself in this unfortunate position, you may want to consult with an experienced business litigation attorney, like a business litigation attorney in Washington, DC, to determine if there are other enforcement options available to you.

Thanks to Brown Kiely LLP for their insight into how the debt collection process works after a civil judgment. 

Workers Compensation Attorneys

As a trusted and knowledgeable business lawyer in Melbourne, FL, we have years of experience in helping clients to find the right solutions for their business needs. Our years of experience have enabled us to assist clients in identifying common mistakes made by business owners. We have successfully helped small businesses, startups, individually ran companies, and also companies of all sizes. Often, our clients come to us because their legal knowledge was limited, and they were vulnerable to making a mistake. A business lawyer can review your strategy and any important documentation to ensure it covers your interests, rights, and overall business. If you would like to know more about how we can help you, please call us today. 

What are the common mistakes made by a small business owner?

Structuring the Wrong Business Entity – This is the most common business mistake made by a small business owner. Many people will structure their business as a sole proprietorship without considering their other options. Just because they might be conducting business on their own does not mean a sole proprietorship is an ideal structure. 

Failure to Consider Intellectual Property – If you have created a logo, slogan, or anything else unique, it is important to ask a business lawyer whether or not you should consider intellectual property protection. Failure to do this can result in another party using your creation, or you could be blamed for stealing it from the party who might have stolen it from you.

Working Without a Contract – If you are planning to work with different vendors, you should have a contract in place, or at the minimum, a valid agreement. Without any proof of an agreement, you may risk your objectives that were included in the contract. 

Failure to Draft an Employee Handbook or Agreement – If you are going to hire employees, you should plan on having a sound employee agreement or handbook. This serves as the foundation for your business-employee relationship. Without this documentation, you may find yourself in a vulnerable situation that could result in legal disputes. Your business lawyer can help you to understand what you need and what is optional. 

Dealing with a Business Dispute Without a Lawyer – In the event that you become involved in a business dispute, you might feel inclined to resolve the issue on your own. This is not advisable. Not only could you risk your business and finances, but you may end up needing a legal advocate anyways. 

Call and Speak with a Business Lawyer 

Regardless of how small or big your business might be, it is advisable to speak with a business lawyer. If your business is large, or you have an ample amount of staff, having a business lawyer on retainer or working at your office may be a good idea. 

Thanks to Arcadier, Biggie & Wood, PLLC for their insight into business law.