STEP 1: Collection Letter Series DEBTORS EXAM LETTER

Information & Instructions Corporate/Individual Letters & Attachments MS Word Files to Download/Edit

Contents

2017 CASH FLOW STRATEGY GUIDE

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© 2017 Stevens & Ricci, Inc.

When you reach the point where you feel a judgment is uncollectible, there is one last strategy that you can try. Contact your Small Claims Court (or the court you obtained your judgment in) and obtain the appropriate forms and information to serve your debtor with a Debtors Exam Order (or what it’s referred to in your particular state). The enclosed pages include sample lists for both corporate and individual debtors which spell out in great detail each and every asset that your debtor must reveal and document to the court under oath at this Exam.

The key to this technique’s effectiveness is that after you read off then send to your debtor all of the asset documentation they are going to have to bring into court under oath, they are more than likely going to pay you off instead.

When you reach the point where you feel a judgment is uncollectible, there is one last strategy you can try. Use the Debtor’s Exam Order as a pressure point, explaining what they will have to go through and how an arrest warrant could result.

1

Collecting Your Judgment

CONTENTS:

• Information & Instructions• Judgment Collection Letter & List of Documents – Corporate• Judgment Collection Letter & List of Documents– Individual• MS Word Files for Letters and Attachments for Copying, Editing, and Use on Your Computer

©2017 Stevens & Ricci, Inc.

COLLECTING YOUR JUDGMENT

Further, you should mention if they don’t show up for the Exam, a warrant will be issued for their arrest similar to an outstanding traffic violation. This can cause them to be taken off to jail the next time they’re pulled over for a traffic violation.

Methods of UseThis technique can be done either verbally or usingthe letter and attached list of required items – or both. There is a separate collection letter and attached list of assets for corporate and individual debtors. Make sure to use the appropriate set. You will find the most impact is achieved when you speak to the debtor over the phone first, then follow-up with a fax or email You’ll be surprised how many Judgment Debtors will decide to settle up.

NOTE: If you don’t plan on actually following through with the Debtor’s Exam Order in the event the debtor doesn’t respond to this technique, do not fax or mail the letter and attachment following your collection call.

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SAMPLE JUDGMENT COLLECTION LETTER – CORPORATESample Judgment Collection Letter – Corporate Debtor

“CERTIFIED MAIL”

(or) “RECEIPT RECORDED FAX”

Month/Day/Year

Contact

Company Name

Address

City, State Zip

Re: Judgement # Date Amount

229253 M/D/Y 1,452.75

Interest: 86.79

TOTAL AMOUNT DUE: 1,539.54

To Whom It May Concern:

The above judgement which is currently over 90 days old has been deemed uncollectible by this

department and as such must now be forwarded to the <County> County court system for

preparation and service of a Debtor’s Exam Order.

You will receive a subpoena and be required to appear in <County> County court along with

copies and statements of the following: all property, stocks, bonds, notes, bank accounts, real

estate, pensions, financial statements, tax returns, insurance policies, and vehicle titles.

You will be required to bring all corporate checkbooks, the deeds to all property owned, tax returns

for the past three (3) years, corporate minutes, by-laws and notes from corporate meeting for the

last three (3) years, and finally a current accounts receivable aging report showing names and

addresses of all customers along with amounts owing.

See attachment for a complete list of all items and documents you will be required to produce

under this subpoena.

It is our intent to pursue collection of this judgement on a voluntary basis. Should we not receive

the total amount due listed above by <date>, you will receive legal service to appear in court under

oath along with the above asset detail.

Sincerely,

Your Name

Your Title

Encl.

POST JUDGMENT DEBTORS EXAM DOCUMENTS – CORPORATE

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List of documents that a judgment debtor must bring along with them to a Post Judgment Debtors Exam (corporate debtor):

1 All corporate financial, business and property records and all other papers, passbooks, record books and books of account which tend to disclose the extent and nature of all financial interests, property and property rights owned by the judgment debtor solely, jointly with or in trust for others. 2 All Corporate passbooks with respect to all savings accounts, checking accounts and savings and loan association share accounts owned solely by the judgment debtor or jointly with or in trust for any third parties. 3 The most recent bank ledger sheets and/or statement with respect to all corporate bank accounts owned solely or jointly with or in trust for any third party. 4 All corporate check books. 5 The deed to any and all real property owned by the judgment debtor solely or jointly with or in trust for any third parties. 6 All securities (stocks and bonds) owned by the judgment debtor solely or jointly with or in trust for any third parties. 7 The latest available balance sheets and other financial statements of the corporation with respect to any and all other business enterprises of whatever nature in which the judgment debtor posses and ownership, interest, whether as a partner, joint adventure, stockholder or otherwise. 8 The corporate accounts receivable ledger or other record with sets forth the name and address of any and all individual or entities that are indebted to the corporation and the amount of such indebtedness. 9 Copies of the corporate income tax returns for the past three (3) years with all appropriate schedules.10 The title certificates, registration certificates and other evidences of ownership or bills of sale possessed by the corporation with respect to any of the following described personal property: a. Motor vehicles of any type. b. Commercial, business or construction equipment of any type; and c. Boats, launches, cruisers or other vessels of any type. 11 Any and all records pertaining to the transfer of any monies or other securities within one (1) year from the entry of final judgment in this cause.12 Any and all agreements with any third parties including but not limited to franchise agreements, licensing agreements, rental agreements executed within the last three (3) years.13 Any and all insurance policies insuring loss to any property of the corporation be it real or personal, whether owned solely by the corporation or jointly with or on behalf of any third parties.14 The corporate kit for the company; including the minutes, by-laws and notes from corporate meetings, for the last three (3) years that the corporation has transacted business.

SAMPLE JUDGMENT COLLECTION LETTER – INDIvIDUAL

©2017 Stevens & Ricci, Inc. 5

Sample Judgment Collection Letter – Individual Debtor

“CERTIFIED MAIL”

(or) “RECEIPT RECORDED FAX”

Month/Day/Year

Contact

Business name (if applicable)

Address

City, State Zip

Re: Judgement # Date Amount

574928 M/D/Y 1,137.38

Interest: 74.36

TOTAL AMOUNT DUE: 1,211.74

To Whom It May Concern:

The above judgement which is currently over 90 days old has been deemed uncollectible by this

department and as such must now be forwarded to the <County> County court system for

preparation and service of a Debtor’s Exam Order.

You will receive a subpoena and be required to appear in <County> County court along with

copies and statements of the following: all property, stocks, bonds, notes, bank accounts, real

estate, pensions, financial statements, tax returns, insurance policies, and vehicle titles.

You will be required to bring all checkbooks, savings and money market accounts, the deeds to all

property owned, tax returns and financial statements for the past three (3) years, the original title

certificate for each vehicle owned, and finally a current accounts receivable aging report showing

names and addresses of all customers along with amounts owing.

See attachment for a complete list of all items and documents you will be required to produce

under this subpoena.

It is our intent to pursue collection of this judgement on a voluntary basis. Should we not receive

the total amount due listed above by <date>, you will receive legal service to appear in court under

oath along with the above asset detail.

Sincerely,

Your Name

Your Title

Encl.

POST JUDGMENT DEBTORS EXAM DOCUMENTS – INDIvIDUAL

©2017 Stevens & Ricci, Inc. 4

List of documents that a judgment debtor must bring along with them to a Post Judgment Debtors Exam (individual debtor):

1 Copies of income tax returns for the last three (3) years with all appropriate schedules. 2 All financial statements prepared by or for Defendant(s) in the last three (3) years. 3 Copies of any deeds, options to purchase and mortgages to any and all real property that Defendant(s) have/has interest in solely or jointly with or in trust for any third party. 4 All records and bank passbooks with respect to all savings accounts, money market funds, mutual funds, checking accounts, certificates of deposit and savings and loan association share accounts owned solely by the Defendant(s) or jointly with or in trust for any third party for the last two (2) years. 5 All records with respect to credit unions owned solely by the Defendant(s) or jointly with or in trust for any third party for the last two (2) years. 6 All Check books. 7 All records with respect to credit unions owned solely by the Defendant(s) solely or jointly with or in trust for any third party, including closely held corporations or professional associations. 8 The title certificates, registration certificates and other evidences of ownership or bills of sale possessed by the Defendant(s) with respect to any motor vehicles, motorcycles, airplanes, trucks recreational vehicles, boats, launches, cruisers, or other vessels or any personal property with a value in excess of $500.00. 9 Any and all records pertaining to the transfer of personal or real property within one (1) year of the commencement of this action. 10 Any and all insurance policies insuring loss to any property of the Defendant(s) be it real or personal, whether owned solely by the Defendant(s) or jointly with or on behalf of any third party. 11 Any trust instruments making Defendant(s) guarantor or trustee in which the Defendant(s) is/are guarantor, trustee or beneficiary. 12 All Savings bonds in which Defendant(s) have/has any interest individually, jointly with or in trust for any third party. 13 Any and all documents reflecting any interest the Defendant(s) have/has in a Keogh plans, pension plans, partnerships, loans to third parties, security instruments, chooses in action and promissory notes. 14 Copies of any judgments owned by Defendant(s) individually or jointly with any third party.