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Attempting to collect a judgment without knowing what assets the debtor owns is like searching for treasure without a map. You might get lucky, but more likely you will waste time and money pursuing phantom assets while the debtor’s real wealth remains hidden. Professional asset searches transform judgment collection from guesswork into targeted strategy by revealing what debtors own, where they bank, what businesses they control, and how they generate income. Understanding the types of asset searches available and what each can uncover is essential for maximizing recovery.
Why Asset Searches Are Critical
Many debtors claim to be judgment proof or unable to pay despite maintaining comfortable lifestyles. Without independent verification, creditors cannot distinguish between genuinely impoverished debtors and those hiding assets. Asset searches cut through deceptive claims by uncovering the objective financial reality. They reveal bank accounts to levy, real property to lien, wages to garnish, and business interests to pursue through turnover proceedings.
Asset searches also provide the intelligence needed to detect fraudulent conveyances and other asset protection schemes. By comparing current asset holdings to historical ownership patterns, you can identify suspicious transfers to family members or shell entities. This information supports fraudulent conveyance litigation and strengthens your overall collection strategy.
Public Record Searches
Public record searches examine government databases and registries to identify assets that debtors must register with authorities. Real property searches check county recorder offices for deeds, mortgages, and property tax records showing real estate ownership. These searches reveal not only property the debtor currently owns but also recent sales that might indicate fraudulent transfers or proceeds available for collection.
Motor vehicle searches query Department of Motor Vehicles databases to identify cars, trucks, boats, motorcycles, and other titled vehicles registered to the debtor. Luxury vehicles often represent substantial equity that can be seized and sold through execution procedures. Aircraft and watercraft registries maintained by federal authorities provide similar information for more specialized assets.
Business entity searches check Secretary of State databases for corporations, LLCs, and partnerships where the debtor appears as an owner, officer, or registered agent. These searches uncover business interests that might be subject to turnover proceedings or charging orders. Fictitious business name registries reveal sole proprietorships and DBAs that could indicate self-employment income.
Professional license searches identify whether the debtor holds licenses as a doctor, lawyer, contractor, real estate agent, or other regulated professional. Licensed professionals often have good incomes subject to wage garnishment and reputational concerns that make them more willing to settle judgments.
Financial Database Searches
Proprietary databases maintained by credit bureaus and information services provide deeper intelligence than public records alone. These comprehensive searches compile data from multiple sources including credit reports, banking relationships, employment history, and address records. While creditors cannot access full credit reports without authorization, specialized asset search services can provide permissible information useful for collection purposes.
Bank account identification services use advanced data analytics to identify financial institutions where the debtor likely maintains accounts. While these services cannot provide actual account numbers or balances, they give you targets for information subpoenas and restraining notices. Knowing which banks to serve dramatically improves the success rate of account levies.
Employment databases aggregate information from payroll processors, tax records, and business filings to identify current and recent employers. This intelligence allows you to serve income executions on the right companies without wasting time on defunct employers.
Social Media and Internet Investigations
Modern asset searches increasingly incorporate digital footprints and social media activity. Debtors who claim poverty while posting vacation photos, luxury purchases, or business ventures on social media platforms provide valuable evidence of hidden assets and income. Professional investigators trained in open-source intelligence gathering can extract this information legally and document it for use in collection proceedings.
LinkedIn profiles reveal employment history, business affiliations, and professional networks that might not appear in formal databases. Facebook, Instagram, and other platforms show lifestyle indicators inconsistent with claimed inability to pay. Debtors often inadvertently disclose asset ownership, business interests, and income sources through social media posts.
Specialized Searches for Hidden Assets
For high-value judgments against sophisticated debtors, specialized searches may be warranted. These include offshore account investigations, cryptocurrency tracing, intellectual property searches, and investigative surveillance. While expensive, these advanced techniques can uncover millions in hidden assets that justify their cost.
Forensic accountants can analyze tax returns, financial statements, and business records to identify income streams and asset transfers not apparent from standard searches. Their expert analysis often reveals complicated asset protection structures and provides the foundation for fraudulent conveyance claims.
Timing and Cost Considerations
The decision of when to conduct asset searches involves balancing cost against benefit. Basic public record searches are relatively inexpensive and should be conducted early in every collection matter. Comprehensive database searches cost more but provide significantly better intelligence and are justified for judgments over $10,000 or when initial searches suggest the debtor has substantial hidden assets.
Conducting searches before taking enforcement action prevents wasting money on fruitless levies and garnishments. However, periodic updates may be necessary as debtor circumstances change. Debtors who initially lack assets may later obtain property or employment that creates new collection opportunities.
Working with experienced Warner & Scheuerman collection counsel ensures asset searches are strategically timed and properly integrated with overall enforcement efforts. Professional judgment collectors know which searches provide the best return on investment for different debtor profiles and judgment amounts.
Integrating Search Results Into Your Strategy
Asset search results are only valuable if you act on them promptly and strategically. Use real property information to record judgment liens immediately. Deploy bank account intelligence through restraining notices before the debtor can move funds. Serve income executions on identified employers without delay.
Document all search findings carefully as they may support future legal proceedings including fraudulent conveyance actions, contempt motions, and turnover applications. The pattern of asset ownership and transfers revealed through comprehensive searches often tells a story of deliberate collection avoidance that courts find compelling.
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