How to Collect a Bad Debt Pre Judgment

Without a court judgment, a creditor's debt collection abilities are limited,

because it cannot legally seize the debtor's assets. The creditor can only demand that the debtor voluntarily pay what he owes. If a debtor knows that she is likely to lose her assets to a creditor, she can dispose of those assets prior to the court rendering a judgment against her. Pre-judgment attachment freezes the debtor's assets until the judge renders a decision. Creditors can sometimes utilize pre-judgment attachment to procure payment from the debtor before the hearing date.

Instructions

1

Visit the court with which you plan to file your lawsuit and request a summons and complaint form. Fill out both forms. Submit the completed summons and complaint to the court clerk. The court clerk will then file the case with the court and provide you with a hearing date for your lawsuit.

2

Serve the debtor with a copy of the complaint and the court summons. You can hire the sheriff's office to hand deliver the summons and complaint to the debtor or, if your state allows the process, send the summons and complaint via certified mail to the debtor's last known address.

3

Write a petition for pre-judgment attachment. Your petition must include both your name and the name of the defendant, the details of the case so far, and which assets you want the court to take temporary possession of. A plaintiff can request a pre-judgment attachment for such assets as bank accounts, real estate and motor vehicles.

4

Visit the courthouse. Give your petition for pre-judgment attachment to the court clerk, who will file your petition and then set a date for an application hearing. Unlike the hearing for the lawsuit itself, the application hearing usually takes place fairly quickly, sometimes within a few days.

5

Attend the application hearing. This hearing is solely for the judge to review your petition and ensure that the pre-judgment attachment you requested falls within the state's legal limitations. If your pre-judgment attachment request meets your state's guidelines, the judge will approve it.

6

Post bond for the asset. The required bond amount varies by state, but your bond must meet or exceed the value of the asset. After posting bond, the court takes temporary possession of the asset until the lawsuit hearing.

7

Request payment from the debtor. By paying the debt before the hearing date, the debtor can both reclaim his asset and have the case against him dropped.