Andrew Flusche, Fredericksburg Lawyer

Are you a business owner with outstanding debts? You don’t have to let them be unpaid.

Virginia debt collection is a vey well-established system. The law makes it fairly simple to collect outstanding money that is owed to your business.

Get a judgment

For any debt owed to you under $15,000, you can sue the debtor in Virginia’s General District Court. This is the lowest level trial court in Virginia. The procedure is typically informal, and you can easily represent yourself.

To file suit against a debtor in Virginia General District Court, you simply fill out a 2-page warrant in debt that you obtain online or at the court clerk’s office. Put your name, the debtor’s name, the amount he owes, and fill in the other details. You then have to file the warrant with the General District Court clerk and pay the required fees. Fees vary by jurisdiction and the amount you claim is owed, but $50 is average.

You will have to show up at court on your return day. This is when the defendant can come and dispute the amount owed. If the debtor does not show up or if he does not contest the debt, you win! If the debtor contests the debt, your case will be set for trial at a later date.

Trial in Virginia General District Court is pretty basic. You will need to prove that the defendant truly owes the amount you claim is due. The defendant can try to dispute the claim by presenting his own evidence.

Collect the money

Once you have a judgment in your favor, you can start procedures to collect the money from the defendant. Virginia law provides several powerful tools for creditors.

Debtor’s interrogatories - You can’t have very effective debt collection until you know what assets the debtor has. This process requires the debtor to appear and answer questions about the type, amount, and location of all his assets.

Writ of fieri facias - Once you know the debtor has personal property, you can ask the court to issue a writ of fieri facias. That’s a big term that means the court will place a lien on the defendant’s personal property. This gives you a legal ability to collect your money from those assets.

Levy - To actually collect your debt from the debtor’s personal property, you must ask the sheriff to seize and sell his assets. The sheriff will go out and “levy on” the defendant’s property. Once the sheriff’s sale has taken place, you will be able to collect your money.

Garnishment - You can also collect your debt by garnishing the debtor’s wages or bank accounts. To do so, you will need to file a Suggestion For Summons in Garnishment. The court will then issue the Garnishment Summons. You will have to pay to have the Summons and a Notice and Claim for Exemption served upon the debtor and the garnishee.

Need help?

Debt collection can be easy, when you know the ropes and all the proper forms to fill out. There is a lot of great information available online and at your local library.

If you need help with the debt collection process, just give me a call.

Photo by wallyg