When you’re trying to collect on a judgment, you have two common options: hire a collection agency or retain a judgment collection attorney. Both approaches aim to recover the money owed, but they operate very differently and have distinct advantages and drawbacks.
In this post, we’ll break down the pros and cons of each option to help you decide the best path for your situation.
What Does a Collection Agency Do?
Collection agencies specialize in pursuing debts through phone calls, letters, and negotiations with the debtor. They typically work on a contingency basis, taking a percentage of the amount collected as their fee.
Collection agencies do not have the power to enforce judgments through legal means. They rely on persuasion and negotiation to convince debtors to pay voluntarily.
What Does a Judgment Collection Attorney Do?
A judgment collection attorney is a licensed lawyer who can enforce court judgments using legal tools like wage garnishment, bank levies, property liens, and asset seizures. They file the necessary court documents and represent you in any related court proceedings.
Attorneys charge either hourly fees, flat fees, or sometimes work on contingency, depending on the case.
Pros of Using a Collection Agency
- Lower upfront costs: Typically no upfront fees, as they work on contingency.
- Less involvement: Agencies handle most communication with the debtor.
- Good for small debts: Efficient for lower-value judgments where legal enforcement may not be cost-effective.
Cons of Using a Collection Agency
- Limited enforcement powers: Cannot compel payment through court orders.
- Potentially aggressive tactics: Some agencies may use aggressive or questionable methods that could risk your reputation.
- Lower recovery rates: Since they rely on voluntary payment, they may not recover as much, especially if the debtor is uncooperative.
Pros of Using a Judgment Collection Attorney
- Legal enforcement: Ability to use wage garnishments, levies, liens, and asset seizures.
- Higher recovery potential: More tools generally lead to better results.
- Legal expertise: Attorneys ensure compliance with laws, avoiding illegal collection practices.
- Cross-state enforcement: Can domesticate judgments and enforce them if the debtor moves.
Cons of Using a Judgment Collection Attorney
- Higher cost: Legal fees may be more expensive, especially for smaller claims.
- More involvement: You may need to provide documents, attend hearings, or communicate regularly.
- Longer process: Legal enforcement can take time, especially if debtors contest the actions.
Which Option Is Right for You?
Consider the following when choosing between a collection agency and an attorney:
- Size of the judgment: For large sums, attorneys are often more effective.
- Debtor’s cooperation: If the debtor seems willing to pay, a collection agency might suffice.
- Need for legal enforcement: If enforcement tools are needed, an attorney is necessary.
- Your budget and timeline: Weigh costs against how quickly you need results.
Conclusion
Both collection agencies and judgment collection attorneys have roles in recovering debts, but their approaches and effectiveness differ greatly. Understanding the pros and cons helps you make an informed decision and improve your chances of successful collection.
If you want to pursue strong, legally backed enforcement of your judgment, consulting a judgment collection attorney is usually the best choice. We recommend Judgement Collection Attorney.
