Collecting Judgments: Does It Matter Why Debtors Won’t Pay?

When it comes to business debt collection, there are different types of debts being collected from all sorts of debtors. One of the more unique kinds of debt is the judgment which is the result of court action. But what if a debtor will not pay? There can be any number of reasons explaining why.

Do the reasons really matter to the creditor? Yes and no. They do matter in the sense that certain extenuating circumstances can partially determine how that creditor goes about collecting the unpaid judgment. They do not matter in the sense that the creditor just wants what is owed regardless of the debtor’s circumstances.

Lots of Reasons to Choose From

Judgment Collectors is a Salt Lake City debt collection agency that specializes in judgments. They operate in multiple states. Through many years of experience and untold numbers of cases, they have encountered just about every excuse for not paying. According to their experts, here are the most common reasons judgment debtors fail to pay:

1. Limited Financial Resources

There are those times when a judgment debtor legitimately doesn’t have the financial resources to pay up. The person or company would be willing to pay if the resources were there, but it is like getting blood from a stone. Believe it or not, this category of judgment debtors is the riskiest of all. Why? Because they could ultimately end up declaring bankruptcy, having their judgments discharged as a result.

2.Disagreement with the Judgment

Next up are those debtors who simply disagree with the judgment entered against them. They believe they wrongly lost their cases. They also sincerely believe they should not have to pay for the court’s improper decision. Getting them to pay is exceedingly difficult.

3. Outright Belligerence

A third category of judgment debtors who will not pay are those who are just outright belligerent. They have a problem with any kind of authority. They do not like responsibility, either. They are going to fight tooth and nail.

4. Playing a Game

Finally, some judgment debtors think that avoiding payment is some sort of game. They find it challenging to stay one step ahead of creditors and collection agencies just for the thrill of getting away with it.

Accounting for Debtor Motivations

Once again, a debtor’s motivation for not paying does not matter much in terms of the creditor wanting what is owed. But it’s not unusual for creditors to treat debtors differently based on how said debtors respond to collection efforts.

If a company is dealing with a customer unable to pay an outstanding bill due to legitimate financial struggles, it is a lot easier for that company to agree to a payment plan. The company might even agree to accept less than what it is owed as an act of goodwill and mercy.

On the other hand, dealing with a belligerent debtor or one who would prefer to play cat-and-mouse with a creditor is much harder to work within a conciliatory manner. They are the kinds of debtors who deserve to have attorneys and collection agencies chase them down.

You Just Want the Money

In the end, the judgment creditor just wants their money. That’s really what it boils down to. Having to get into why debtors will not pay only complicates the matter. And yet, there are legitimate reasons for not quickly and immediately paying up. The question is whether creditor and debtor can willingly work out a payment arrangement. Sometimes they can, other times they cannot. And when they can’t, creditors need to look at all the remaining options.

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