Best way to locate debtor's assets to file liens against?
Question:
We now find ourselves with little choice but to take necessary actions to protect/recover what money we can from this loan. We have promisory notes but did not secure them against assets. We live in CO as does our ex-friend (although he and his wife have put his home up for sale).
What are the best resources on the Internet to:
1) help ID/locate available assests of this individual that do not already have liens against them (e.g. home, auto, business, investments, bank accounts, etc). Because this was a friendship loan, we didn't have the smarts to get his SS# (suggestions how how to get it?)
2) to help defray legal costs, what efforts can we do ourselves, from on-line resources and otherwise, to begin this whole process (e.g. necessary forms to file, education on how best to file motions, obtain judgments, etc)
Thx. in advance for any help you can provide.
Answer:
Since they've put the home up for sale, you need to act fast. Go to the county recorder's office and file a lien against their home, which will come up when the title company starts the escrow proceedings. You may also want to file a lis pendens, although you may have to file a claim in superior court first. I'm in California, so I can't be sure of any of this. It may be worth it to talk to an investigator about how to get all the necessary information on things other than the home. The investigator can tell you if you need an attorney, or can recommend a paralegal who can help you if you file in pro per. But you probably do need to file a lawsuit, because much of the assets involved can only be disclosed by a court order (at least here in California), and that means having a judgment, then an Order to Show Cause. Colorado probably has something similar, but you can't count on the specifics.
If you don't want to pay for a lawyer, a paralegal or an investigator is essential. They will tell you if you get in over their heads, and recommend a good, hopefully not too expensive, lawyer.
Good luck, and do move fast!
Your county recorder can get you started regarding forms and motions to set legal action in motion. As for defining assets, that comes after a judgment - and again, the court has a set way for you to proceed. They authorize you to order the defendant to produce a list of assets and if they do not voluntarily produce a list - there is a process to make them appear in court, to do so publicly. At this point - there are further, defined measures to effectively collect.
As you know, once you have the judgment, if his home is sold, escrow will be obligated to make a payoff of the judgement or the two parties can renegatiate at that time - this isue will be - no monetary transaction of real property, anywhere he lives, will be left unclouded by this judgment untill it is cleared.
Personally, I think you should consult with an attorney and pay for the advice - as much as I hate to say that - I think it will serve you best.
Bummer! I would just kindly tell your friend that you would like to settle his debt out of court. Maybe this will clue him into the fact that you mean business. Also let him know that you will hold him responsible for legal fees. good luck!
had you gone to a lawyer in the first place, he or she would have most likely informed you on the proper way to protect yourself. now it is beyond late for that part. and you want to be cheap again and not pay a lawyer to help you recover the debt.
think it over, learn from history, don't repeat it.
More Questions & Answers...