Asset Search on a Judgment: A Smart Move or a Waste of Time?
Download MP3Overview: After winning a lawsuit and obtaining a judgment, the next step is to collect the money. One common question is whether to run an asset search. This episode covers the pros and cons of conducting an asset search to recover your judgment.
Pros of Running an Asset Search:
- Snapshot of Assets: Provides a snapshot of assets at the time of the judgment, such as real estate, vehicles, and bank accounts. This helps prove what assets the debtor had at the time.
- Asset Tracking: Useful for tracking assets if they were transferred or squashed after the judgment.
- Determining Recovery Viability: Helps assess whether it’s worth chasing the debtor for collection, based on the assets they currently hold.
- Immediate Collection: If you discover valuable assets like a bank account with funds, you can initiate garnishment proceedings and collect immediately.
Cons of Running an Asset Search:
- Cost: Asset searches can be expensive, especially if you need to hire a licensed investigator. However, the costs primarily involve time and labor, and some research can be done independently to reduce expenses.
- Legal Risks: You must be careful not to violate any laws while conducting the search. Federal laws like the Graham-Leach-Bliley (GLB) Act prohibit certain activities like misrepresentation or identity theft when gathering asset information.
- Accuracy of Reports: Not all asset searches are the same. Beware of unreliable services that provide inadequate searches, such as simple Google searches or third-party databases.
- Licensed Investigator Requirements: Ensure that the asset search is performed by a licensed private investigator to avoid the risk of having the results excluded in court due to improper methods.
Key Takeaways:
- Assess whether pursuing an asset search is worth the cost and effort based on the debtor’s current financial situation.
- Be cautious of the legal aspects and always ensure compliance with privacy laws.
- Consider doing part of the search yourself to minimize costs.
- Consult with a licensed investigator for more accurate and lawful asset searches.
Resources: Visit our website for more information on asset searches and to book a consultation with a licensed investigator for personalized advice.
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Note: This episode does not offer legal advice, and we recommend seeking legal counsel when dealing with legal matters.
