When you reach the point where you feel a judgment is uncollectible, there is one last strategy that you can try. Contact your Small Claims Court (or the court you obtained your judgment in) and obtain the appropriate forms and information to serve your debtor with a Debtors Exam Order (or what it’s referred to in your particular state). Then go to the Stevens & Ricci Resource Center and download the judgment collection letters and generic (sample) lists for both corporate and individual debtors. These lists spell out in great detail each and every asset that your debtor must reveal and document to the court under oath at this Exam.

The key to this technique’s effectiveness is that after you read off then fax to your debtor all of the asset documentation they are going to have to bring into court under oath, they are more than likely going to pay you off instead. Further, you should mention if they don’t show up for the Exam, a warrant will be issued for their arrest similar to an outstanding traffic violation. This can cause them to be taken off to jail the next time they’re pulled over for a traffic violation. (more…)