Collecting a debt starts with determining whether the debt is in the form of a judgment. Simply put, has a court made a ruling that the debtor owes the creditor money? If so, the debt has been reduced to a judgment. This allows a creditor to legally seize assets, cash, vehicles, personal property, and real estate to satisfy the debt.
If a debt has been reduced to a judgment, Catalyst uses a number of legal tools to satisfy the judgment. Some of these tools include:
1. Garnishment of Earnings.
More commonly known as a wage garnishment, the process of Garnishment of Earnings is a procedurally complex manner of collecting a percentage of a debtor’s paycheck. Catalyst uses private investigators and tools such as a deep skip trace to find a debtor’s employer as well as other sources of income. In Arizona, up to 25% of a debtor’s disposable earnings may be garnished. In situations where the debtor can demonstrate to the court some sort of financial hardship, a court may lower the percentage to 15%.
2. Garnishment of Non-Earnings
A garnishment of non-earnings is the process by which a creditor collects money held by a third party on behalf of a debtor. The third party is the garnishee. A garnishee is usually a bank, but includes any entity that holds money – including rent that hasn’t been paid yet – or property on behalf of the debtor. As with garnishment of earnings, Catalyst utilizes private investigators and skip traces to track down assets. Where a debtor works hard to hide assets from a creditor, Catalyst works harder to find them. Catalyst may also subpoena bank and business records to determine where a debtor may have assets. We are thorough in our investigations.
3. Writ of Execution
A writ of execution is an order whereby a sheriff or sheriff’s agent may collect personal or real property from a debtor for an unsatisfied judgment. In the writ of execution, a creditor must specify to the sheriff what the property is and where it is. By order of a writ, a sheriff will collect property, real or personal, fro a debtor and sell the property to satisfy the debt. Any funds from the sale in excess of the debt, plus costs and fees, are paid to the debtor.
A Writ of Special Execution is a writ that enumerates specific personal or real property. For example, if a creditor attempts to satisfy a judgment by collecting a boat from a debtor, the writ would have to specify where the boat is and the specifics of the boat.
A Writ of General Execution directs a sheriff to seize any non-exempt personal property from a debtor. Like a writ of special execution, the sheriff then sells the property at a sheriff’s sale to cover the debtor’s debt.