How to collect a judgement without much information on the tenant

Question

Hello BP, I started investing back in 2015 with the purchase of a 3-family property around the Northeast Pennsylvania region and admittedly made some rookie mistakes. A few years later I found myself in court to evict a tenant who hadn’t paid rent in several months. The tenant didn’t show up and I won the judgement for a significant amount.

I had always read stories about how unlikely it was to successfully collect a judgement so I held on to this for a couple years but I’m finally ready to give it a try to see if it’s possible to collect at least a portion of the debt.

The issue I’m facing is that I have very limited information on the defendant so I can’t file a writ of garnishment because I have no idea where they work or which bank accounts they have. Only thing I know is they moved to Mississippi and I was able to get the name of their current landlord but that’s about it.

How would you begin the process of collecting this judgment considering the situation? Should I contact the current landlord and try to get information on the defendant? The person doesn’t know that I have this info and I wouldn’t want them getting tipped off yet but might be worth the risk. Should I contact a RE attorney in MS? or perhaps just give the judgement to a collections agency?

Would appreciate any advice here. Thanks for your help!

Joe Splitrock · Answer

@Nelson M. the idea that people never collect is a direct byproduct of them not trying to collect. You can absolutely collect money from a tenant, especially as time passes and they are trying to repair their financial situation. I would contact a collection agency. They will take a large fee, but only if they collect. They have methods to encourage the tenant to pay.

Calling the tenants current landlord is probably not a great use of time. Collecting money from their tenant doesn't help them in any way. Give what information you have to the collection agency and let them do their job.

Calling the tenants current landlord is probably not a great use of time. Collecting money from their tenant doesn't help them in any way. Give what information you have to the collection agency and let them do their job.

Charles Yant · Answer

@Nelson M. It has to be the county in which the debtor lives as far as I know. Also it's a read but this link should be helpful. But a skip tracer/leg man  could acquire the debtors  address and info for you. And once had notice made up could also deliver it in hand to them as proof they recieved and start the 21 day wait. The link to help law wise. http://home.olemiss.edu/~mhoffhei/mscflaw.htm

Nelson M. · Answer

Thanks for your answer! I’m getting the feeling that a collection agency might be the best bet but would like to leave that as a last resort.

Charles Yant · Answer

Before trying to register it, the judgment has time limitations in Mississippi. Contracts, oral or written, and Promissory Notes have a statute of limitations of 3 years (MCA 75-3-118, 75-2-725, and 15-1-49).

Open Accounts or credit card agreements have a statute of limitations of 3 years from the date at which time the items on the account became due and payable (MCA 15-1-29 & MCA 15-1-31).Judgment liens on real estate, orders by a court of law allowing a creditor the right to take possession of a debtor’s property after he or she failed to meet duties under an agreed up contract, have a 7 year period of limitation, but may be renewed by filing suit to renew the judgment prior to the expiration of the 7th year (MCA 15-1-47).Deficiency claims, or the balance left on a foreclosed mortgage, has a limitation period of 1 year from the sale of collateral (MCA 15-1-23) as do enforcement of construction liens,  claims against property by a contractor, from the date the lien is filed (MCA 85- 7-141).

Charles Yant · Answer

I would register the debt in Mississippi, skip trace the debtor, then serve notice that it is registered in the state and have legal right to collect. And then go forward with efforts to collect.

Nelson M. · Answer

It was a mistake on my part after hearing stories of people who were never able to collect, but I guess in a way it’s a good thing that a few years passed because the tenant has seemingly improved their situation and I may have a better chance of collecting now than I did back when they were evicted and had no job or money. Thanks for your response. I have learned my lesson for sure.

Nelson M. · Answer

Thanks for your advice! I was under the impression I had to register in the specific county where the defendant lives/works. Would you know if there’s a way to register in the state that covers all counties?

Jaron Walling · Answer

If I throw a rock into a lake will it sink?

"I held on this for a couple years" what were you waiting? The best thing you could do is advice the new landlord of the situation you experienced and they can prep for the worse. Hopefully the tenants are making better financial choices in 2021.

How to collect a judgement without much information on the tenant

Most Popular Reply