Collecting On Fees Awarded in Conciliation Court

Collecting On Fees Awarded in Conciliation Court

Rental Property Investor · Littleton, CO · Member since 2019 · 46 posts · 17 votes

I had a tenant that I evicted for being arrested with meth in a stolen vehicle on my property (and also for not paying his rent but I couldn't evict him for that...thank you Minnesota Covid protection laws!!). And before anyone gets sympathetic for this guy, he was working up until May, 2021 and got fired just for being a bad employee (meaning it wasn't a Covid layoff), then he was subletting the unit without my knowledge, pocketing the $500/mo. he was charging the subletter, and not paying me a dime knowing I couldn't evict him. Then of course he trashed the place once he actually was evicted. 

The court ruled in my favor and I'm now able to pursue him for about $9k for court, fees, legal fees, and damages. Does anyone have experience with collecting on these types of fees? What's the best way to go about it? What are the odds I actually see the money ever? I have his Social Security number and his state ID (he doesn't have a drivers license). I have an idea of where he works (not 100% yet) and I don't know where he lives now.

My lawyer that I used for the eviction and conciliation court case says he can try and collect, but at $425/hr, that adds up quick. He mentioned I can charge the tenant for those costs, but that sounds like a never ending circle...eg. I use my lawyer to collect the initial $9k, but he costs $5k to do that work, then I collect that $5k and accrue another $5k in lawyer costs and on and on. 

I've reached out to a couple collection agencies and haven't gotten responses yet, but sounds like they take about 1/3 of the total collection amount. I could potentially live with that because $6k is better than nothing, but looking to hear what other people have done in this situation.

Thanks in advance!

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  • Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    4y

    Hire the collection agency. Unless you want to learn all the laws and jump through all the hoops, it's easiest to just hire a professional company to do this. They know what forms to file, how to track down people, how to work the system, etc. 

    If you had a bunch of these, I'd say learn the laws and do it yourself, but for just one or two, let a collection agency handle it and there is no cost to you if they don't collect. 

    As long as the person is working a legitimate job, the odds are pretty good that you'll get something. Don't expect your $9K back tomorrow, but you may get $50 or $100 every paycheck. In some places you get interest on the judgment, so that helps since you're being paid over a long time. 

  • Tim SwierczekPro Member
    Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
    4y

    @Steve Sorensen  I'm not familiar with the process, but I do know you can make the judgment collectible, by having it recorded with the courts (that could be the incorrect terminology).  This process can start wage garnishments.  I have a friend who has done this and explained it to me about 5 years ago. Please PM me and I'll set up a 3-way call or zoom with my friend.  I'd like to relearn this process too.  


    PS- my friend used to be a court clerk for Hennepin County so she knows the exact process.

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