Imagine filing a civil lawsuit only to have the defendant either fail to respond or respond but not show up in court for trial. The result is a default judgment entered in your favor. Would you consider that a positive outcome? Most people would. But more often than not, a default judgment is small consolation to the plaintiff.
A Victory Without Contest
A default judgment can be a good thing in the sense that it represents victory without contest. The plaintiff doesn’t even have to prove the merits of their case because the defendant chooses not to participate. In essence, default judgments represent the easiest of winds. But it’s not all good news.
Imagine being on the other side. What would motivate you to either fail to respond or not show up in court? I can think of several things:
- A history of ignoring or running away from problems.
- The belief that failing to respond will stop the case from moving forward.
- An inability to pay any monetary award the court might order.
There may be other reasons, but the one thing they all have in common is the defendant’s state of mind. If a defendant is unwilling to respond or appear in court, how willing will he be to pay a monetary award entered against him? Therein lies the catch-22 inherent to default judgments.
The Debtor Is Already Uncooperative
A plaintiff winning a default judgment is dealing with an uncooperative debtor from the get-go. He needs to contact that same debtor to get information about employment, income, and assets. It is not going to be easy.
If the plaintiff does successfully make contact, there is still the reality of actually collecting. Perhaps the debtor will agree to a monthly installment plan. But will he abide by the plan until the debt is paid off?
There are obviously more questions than answers. Yet the reality remains the same. Winning a default judgment against a defendant who either fails to respond or doesn’t show up in court translates into winning an award from an individual who is going to be very difficult to collect from.
Most Creditors Need Help
For the record, the winning parties in money judgment cases are known as judgment creditors. They almost always need help collecting default judgments. Who helps them? In most cases, creditors have two options:
1. Their Attorneys
It is not unusual for a judgment creditor to leave collection efforts to the same attorney that provided representation during the trial. Whether the attorney is employed by the plaintiff or works for an independent firm that was brought in to represent them, winning is followed by collection efforts.
The downside to having an attorney work on collection is the fact that attorneys generally have other things to do. There is no guarantee that a creditor’s attorney will be able to put sufficient time and effort into collection.
2. A Collection Agency
The second option is to bring in a collection agency. A general collection agency could handle the job, but a specialized agency is better. Judgment Collectors is one such agency. The Utah firm specializes in judgments exclusively. It is all they do, so clients get the agency’s full attention and effort.
If I were a judgment creditor, I wouldn’t even think of trying to collect from a debtor who failed to respond or show up in court. A default judgment is of little consolation when you are dealing with a debtor who, for whatever reason, fails to participate in a legal process. I would bring in a collection agency every single time.