For judgment creditors, the victory in court is only half the battle. The real challenge often lies in collecting the awarded damages. It’s not uncommon for judgment debtors to hide assets or funds to avoid payment, making the enforcement of the judgment a daunting task. However, there are strategic measures creditors can take to uncover hidden money or assets. You can seek the help of a collection lawyer from Warner & Scheuerman for the same.
This guide outlines practical steps for locating bank and investment accounts, examining land records, reviewing past transactions, and issuing an information subpoena.
- Locating Bank and Investment Accounts
The first step in uncovering hidden assets is to locate any bank and investment accounts held by the debtor. This can often be achieved through the use of asset search companies that specialize in finding hidden bank accounts, both domestically and overseas. These companies employ various tools and databases to track down financial accounts associated with the debtor’s name and social security number. It’s important to note, however, that these services can be costly and are bound by legal restrictions regarding privacy.
- Examining Land Records for Property Ownership
Another effective avenue for discovering hidden assets is to search through land records. Most property ownership records are public and can provide valuable information about real estate owned by the debtor. By visiting the local courthouse or accessing online databases, creditors can search for properties registered in the debtor’s name. This search may reveal previously undisclosed assets that can be used to satisfy the judgment.
- Reviewing Past Transactions
Reviewing the debtor’s past financial transactions can also offer clues to hidden assets. This might involve analyzing bank statements, tax returns, and other financial documents to trace irregular or suspicious transactions that could indicate the existence of concealed assets. In fact, large, unexplained transfers or purchases may lead to the discovery of assets transferred to family members, friends, or shell companies to avoid detection.
- Issuing an Information Subpoena
If initial efforts prove insufficient, creditors have the legal option to issue an information subpoena. This is a court order requiring the debtor or third parties (e.g., banks, employers) to provide information about the debtor’s assets. An information subpoena can be an incredibly powerful tool, as it can compel the disclosure of financial records, employment details, and other key information directly relevant to the debtor’s ability to pay.
