What are the chances I will ever see my money?

Question

Had a tenant evicted last week and he owes over $1k. We have a court order for him to pay but I was curious if I'd ever see my cash. Hes changed jobs 4 times in 7 months so I see wage garnishment highly unlikely. Will they go after his tax returns too like they do for child support? Anyone know what the Michigan laws are on this??? And what are the chances I will see my cash? These kind of people spend their whole life running from responsibility so I don't think it looks good for me.

Greg B. · Answer

I list their names on my "Do Not Rent" list on my website.  The website has some SEO stuff on it.  If they have an unique name, when they Google their name, my listing will usually pop up in the top ten.  I just got paid $500 back rent from a past tenant by using this.  I do not post any personal information or elaborate other than to say I won't ever rent to them again and this is how much is owed.

Your results may vary.  Good luck.

Don Konipol · Answer

Unfortunately, THEY do not go after anyone! You do, by hiring attorneys, collectors, forensic accountants, etc. Obviously not worth it for $1000. The governmental authorities do not get invloved in civil judgements. Once you have a judgement it is up to you to try to enforce that judgement.

So to be clear, obtaining a court judgement is step 1; enforcing the judgement (usually quite expensive) is step 2; collecting on the judgement is step 3.

Mark Yuschak · Answer

The only tax return you can go after is the State tax return.  You cannot garnish the IRS return.

I've had this happen to me more than once.  More often than not, it's a better use of my time to just suck it up and move on.  If I do get the money judgement (99% of the time I don't anymore since I just want the lazy SOBs out), I will try to persue it.  If I'm not getting anywhere I send it to a local collection agency.  They charge 50% of whatever they recover.  The nice thing is, sometimes a year or two down the road you'll get a check in the mail and not even remember what it was from!  :)

I can PM you the names of the companies I use.  They're both Flint-based, but I'm sure they cover the thumb area.

Mark Yuschak · Answer

After you get the money judgement, that's when you can turn the case over to a collection agency.  Since you would have already gotten the judgement, inherintely, the person would have already been served with the summons and complaint to appear in court.

I use either Merchants and Medical based in Flint on Taylor Drive, and Russell Collection Agency on Van Slyke based in Flint.

Mark N.A · Answer

Many times the only satisfaction I get is knowing they now have an eviction/judgement on their record, and knowing that no decent LL will rent to them.

However, in some states one can attach liens to certain property in certain instances.

Your best defense is knowing the law better than your tenants, and that can be addressed by reading some reference books and studying your state laws online.

DAVID GAGE · Answer

Mark thanks for the help. I have another question for you. Do I still need to still have the parties involved served the judgment even if I choose to use the collection agency method you described?  Also would you please email me their info. Thanks you.

DAVID GAGE · Answer

Here is how the Michigan law reads.....Once a money judgment is awarded, the prevailing party, through a lawful collection process, can garnish wages, garnish bank accounts and garnish tax refunds. The prevailing party may also be entitled to another remedy-executing the money judgment against personal property(car,fine jewelry, collectibles and the like)...................That said the deadbeat drives a beater and has know fine jewelry however he did have a nice collection of pop cans.LOL....so it would seem my only hope is the Tax refund after all and I know he has already filed this year. If I can make sure this sticks with this POS on his credit report then its worth the effort to me. I want him to remember me and tell his friends so they avoid me like the plague.

Joel Owens · Answer

You can let the judgment sit on their credit but there are time limit laws in most states in years where it will expire.

These types of tenants are professional deadbeats.They usually owe child support among other things.They change jobs frequently so that you can't get a garnishment.

Some even work at cash jobs under the table with no reporting so none of their money can be attached to.

What you can do is file yourself for  a judgment and forget about it.Maybe they pay you someday or there are collection companies who will pay you a nominal amount for the judgment upfront or they will partner with you and split what they collect.

This way you don't have any more time into it but might collect something. I call it "set it and forget it".

Nick Henson · Answer

Sorry for the lousy situation! Agreeing with everyone here so far... You're not likely to get your 1K and more than likely to pay out more than you will ever see coming back to pursue the judgement. But the judgement on their credit report is your only chance of ever getting the money.-Sorry-Most of us have to take this kind of lump every now and then. Cost of doing business. Good Luck!

Brandon Kamm · Answer

Sorry for the typos, iPad :(

What are the chances I will ever see my money?

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