Collection agencies play a crucial role in helping businesses and individuals recover their debts, especially in cases where the debtors are uncooperative or evasive. To ensure that the collection process is efficient and effective, collection agencies rely on various strategies and tools, including asset and location investigations.
Asset investigation involves the process of locating and identifying the assets of a debtor. This information is then used to determine the best way to collect the debt owed. Collection agencies use various methods to carry out asset investigations, including public records searches, credit reports, and access only databases. This information is crucial in determining the debtor’s ability to pay and can help the collection agency prioritize their efforts.
Location investigation, on the other hand, involves determining the current whereabouts of a debtor. This information is also crucial in determining the best approach to collecting the debt. Collection agencies may use a variety of methods to determine the current location of a debtor, including public records searches, skip tracing, credit reports and social media searches.
Asset and location investigations play an important role in both pre-judgment and post-judgment collections. Pre-judgment collections refer to the process of collecting a debt before a court has issued a judgment. In these cases, collection agencies use asset and location investigations to determine the best approach to collecting the debt, whether it be through negotiation or legal action.
Post-judgment collections refer to the process of collecting a debt after a court has issued a judgment. In these cases, collection agencies use asset and location investigations to determine the assets and location of the debtor, which can then be used to enforce the judgment. This may include wage garnishments, bank account levies, and property liens, among other enforcement methods.
In conclusion, asset and location investigations are key to the success of collection agencies in both pre-judgment and post-judgment collections. By providing valuable information about the debtor’s assets and location, collection agencies are able to prioritize their efforts and increase their chances of a successful collection. Whether you are a collection agency or an individual seeking to recover a debt, investing in asset and location investigations can be a valuable step towards a successful collection.