Published Friday, February 10, 2023 by Alan Holdren

The backside of the collection process can be the one that makes or breaks a creditor getting what they want and a collection agency living up to the expectations touted by a salesman.

Historical data will tell us that 25% of revenue comes from the indication that a lawsuit is pending, actual filing and notification being received of the suit by the debtor or the actual appearance in court by the debtor party. Most, even after a suit is filed, never show up for any hearings and have judgments rendered against them. The excuses include cannot make it, never thought we would actually do it, already have multiple judgments so what is one more and some just do not care. As with teachers, we have heard every excuse for not appearing i.e.: did not know about it, did not know where to go, I do not like the judge and the best is, I was going to lose anyway. The last is usually the most accurate, but gives you little to no negotiation ability and is looked at poorly by many judges if you ever have to appear before them in the future.

Most agencies initially just want the judgment ,or even better, to have the account paid in full prior to. The process by how we get the money does not matter. Please understand that creditors or collection agencies are kind of placing a horse race bet with favorable odds. As court costs in Indiana have doubled over the past few years, we have to look at our use of funds more carefully. If we are vesting $89.00 into a case we had better be sure we can at a minimum get our court costs back and make a buck because their is extensive work required by the courts to make this process happen. If payment is not made prior to the hearing we will obtain a judgment and move toward a 2nd hearing / garnishment hearing to obtain a garnishment and hopefully get money coming in quickly on our client’s behalf.

Process:
-Send a Letter
-Make Phone Calls
-Prepare court Case with Copies of Bills
-1st hearing for Judgment
-2nd Haring for Garnishment or Body Attachment

Body attachments can be a path followed after judgments are allowed only when no other remedy has worked and collection agencies cannot get someone to appear or there are special circumstances that would have a judge issue such a warrant. County-by-County courts treat these as passive (enforced only when a debtor is arrested for something else) or active (when a judge orders an officer to actively find and serve the warrant issued for the debt). The debtor is then taken to jail until an understanding is reached or released by the judge. Atlas does not like to ask for these any more often then necessary. We have always been of the opinion that jail is for violent criminals, though many times a client of ours feels differently and rightfully so.