Tag: collection

Basics of Indiana Collection Law

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If you are owed money and the person or entity that owes you refuses to pay you will have to make the decision whether or not you want to take the matter to court to enforce collection of the monies owed to you. In Indiana for claims involving $6,000 or less, $8,000 or less in Marion County Indiana, there is a simplified procedure for filing a lawsuit in what is called Small Claims Court. The filing fee generally changes slightly from year to year but it should be around $90. Most courts in Indiana are going to e-filing. As a pro-se plaintiff, you are able to file as before. But that law could change in the future.

The advantage to filing in Small Claims Court is a faster route to trial if a trial is necessary. In addition to a streamlined process for obtaining a judgment, Small Claims Court is also designed for a streamlined process for the collection of the judgment. If a trial is required then it usually can be scheduled in a relatively short period of time. One month up to six months. This is a much quicker time frame in which to get in front of a judge than you would have in a court outside of Small Claims Court. Many claims are reduced to judgment without the need for a trial and in that case, you might have a judgment Within 2 months after filing the lawsuit.

Obtaining a money judgment against the person or entity that owes you money is often the easiest part of the process. You then have to collect on the Judgment the court provided to you. This is not automatic. Just because you have a judgment does not mean the person or entity that owes on the judgment will voluntarily pay.

In Indiana, the most common form of collecting on a judgment once one is obtained is through the garnishment of wages. The wage garnishment statutes in Indiana are favorable for creditors. An employer will be required to pay a percentage of an employee’s wages into the court if they receive the proper paperwork from the Judgment creditor through the court system. The formula that is used is 25% of net income (net income is take-home wages after deducting only taxes and Social Security withholdings). If the Judgment debtor makes less than $217.50 which is 30 hours at minimum wage of $7.25 then nothing is taken from their wages on a garnishment. If they make between $217.50 and $290 the entire amount over $217.50 up to $290 is taken as garnishment. If their net income is over $290 then 25% of their wages are garnished. This formula is provided to employers on the paperwork they receive from the court instructing them to garnish the employee’s wages to satisfy the judgment. There can be other considerations such as support payments and independent contractor issues that could change this formula.

Perry Law Office can help you collect on this difficult to collect judgments or help you obtain a judgment.

Collecting On a Debt Is Not As Easy As It May Seem

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There is a misconception that getting a money judgment against someone, means they will pay you. In general, that is NOT the case. We, at Perry Law Office, have found that on average it can take up to two (2) years to collect on a judgment depending on the various circumstances and how old the debt is. There are of course those rare circumstances when you get paid immediately upfront. But in most circumstances that is not the case. Getting the money judgment is only the first step. Debtors, tend to move. Debtors, tend to switch jobs. Debtors, tend to be unwilling to voluntarily pay a debt they owe. Debt Collection takes some time and hard work. Finding employment, personal assets, or bank accounts can be very difficult. Not to mention, finding the debtor and getting proper service in order to enforce your claim against them.  The experienced staff and attorneys at Perry Law Office, are equipped to find these debtors and collect from them. Perry Law Office can find where they are working and garnish their wages, levy on their bank account, or set up voluntary payments. If someone owes you money and you are not sure how to collect, hire an experienced lawyer to help you collect the money owed to you. Hiring an attorney is not as painful as you may believe. In most cases, you do NOT have to pay the attorney any attorney fees. Like at Perry Law Office, our fee is typically done on a contingent fee basis, meaning if we do NOT collect, you do not owe us anything. Call Perry Law Office to discuss how we may be able to help you recoup your money.