Posted by Frank Chin on November 26, 2004 at 08:36:35:
Bill:
You’ll should get an attorney conversant with the laws of Ohio. There are often Federal and State Consumer Protection laws Laws that govern debt collections.
Having spent the first dozen or so years in the Debt Collection business, I know some youngsters living with their folks would not have assets, or income to make the debt collection cost effective, unless you’re so angry that you don’t care if you spent more to collect the debt than the amount owed.
As to the Debtors exam, we have examined debtors that we beleive have assets, and spent several thousands of dollars to over $10,000 in one case.
As to collection methodology:
- Garnishee is fine if the debtor has a good steady job. An income execution is good only for a given employer, and you’ll have to serve the “second stage” of the income execution again once the debtor changes jobs, and you’ll first have to find out where his new job is.
Again, most part time jobs are off the books, and under "The Federal Wage Garnishment Law, Consumer Protection Act?s Title 3 (CCPA),USC §1671, you can only garnishee if the debor owes “30 times federal minimum wage or less? per week, or less than $154.50/week.”
- You can also seize assets of the debor, following legal prcedures (writ of replevin). Here, its only good if the asset is worth anything, and you’ll have to resell it if its not of any use to you.
If you’re really mean, here in NY state, such debtors are allowed only one TV set, one stove, one frdige, one watch, so much in jewelry etc.
- Here in NY State, you can seize cash from the debtor’s bank accounts, but only when all else fails. This assumes the debtor is not dumb enough to close his bank acccounts first.
Another way is to take the long view. If you have a judgement, make sure the credit bureaus have a record of it. More often than not, the debtor may want to buy a house or establish credit years down the road, and may want to settle the debt to clear up his credit record.
If you press hard enough, the debtor can also file bankrutcy, legally clearing up your debt pennies on the dollar.
Frank Chin