After the presiding Small Claims Judge decrees a Judgment, you will need to be able to collect the dept. awarded. Collecting Small Claims Judgments is difficult to do by yourself. The debtor can hide and refuse to let you know their real assets. The debtor can also avoid for years settling the Judgment with you by disappearing. Alone you stand almost no chance of recovering your money or items owed.
Most business owners encounter the frustrating problem of receiving bounced checks from customers. A bounced check is considered a check that has (NSF) non-sufficient-funds in the issuer’s account. This can create a great burden for the business owner who has already supplied a service or product and now has to deal with non-payment. If this has happened to you, then the best step to take right after making unsuccessful attempts to collect payment from the customer is to contact a Debt Collection Agency.
Although most debt collection agencies work in a similar manner it is important to review the international collection agency that you choose to use. One collection agency might work differently than another collection agency; or, they might charge your account in a different way. This is why you need to review a number of agencies and then choose the one that closest meets your needs.
While debt collection is most often associated with consumer accounts, there is a growing need in the business community for a collection company that specializes in business-to-business debts and past due payments. Accounts Receivable is just such a company, with an extensive amount of experience collecting debts from companies whose financial situation has become less than ideal.
Small claims court are ideal to use if someone owes you money and you want to avoid the hassle of a long, drawn out trial. However, small claims courts have a maximum amount that you can receive for the judgment and this money may be difficult to collect.
Small claims courts are generally state courts that hear claims regarding a smaller monetary amount. The maximum amount that you can claim for damages depends on the county and state where you file. Many small claims courts have a cap of $5,000 as the maximum that you can receive if you win the case. This means that if you have a claim for $15,000, you could lose your right to collect the other $10,000. Other state small claims courts have a limit up to $10,000.
If you have multiple claims against someone, you can file independent claims up to the maximum amount for each claim. However, if the claims are regarding the same matter, the court is not likely to allow you to file multiple claims.
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