Divorce and Collecting on Judgments
At the Orange County Law Office of David P Schwarz we can assist our clients in collecting a debt or defend them in attempting to settle a debt from a creditor during a divorce. Please contact our office at 949 735 9266 or via the web. We can also be reached by email at email@example.com.
A Divorce lawyer can assist you in going after the ex spouse for the debts that are owed from the divorce judgment. This is a common event that occurs during the divorce proceedings because the division of assets and debts is so common and often parties have spent the money that is owed to the other spouse and will have to pay it back through time. The divorce judgment will often set an amount and time frame to pay back the debt owed to the other spouse.
A Divorce lawyer will outline the two types of debts that are commonly incurred by the partes. The first is called Secured debts which are those the debtor has given the creditor a security interest in personal property or a trust deed on real property to secure repayment of a loan or purchase. Foreclosing and selling personal property collateral is governed primarily
California Commercial Code whereas real property foreclosures are governed chiefly by the California Civil Code and Code of Civil Procedure.
The second type of debt and the most common that comes out of a Divorce Judgment is called an unsecured debts these are debts that do not have a lien on them or are secured by another property to secure its value. Unsecured debts are just debts that are owed to a bank or to other third party without any attachment to another property. A good example would be credit card charges.
At the Orange County law Office of David P Schwarz we will guide our client on how to go about collecting on the debts that are owed to them. There are two types of debt owed to the spouse. They are called Consumer vs. commercial claims.
A Divorce attorney will attempt to collect a Commercial (business) claims which are those that arise out of debts incurred for business purposes—e.g., often, but not exclusively, by a corporation, partnership or sole proprietor. Commercial debts often involve greater sums than consumer debts. But so long as the business is liquid and still operating, commercial debts are usually easier to collect than consumer debts—significantly, because (a) stable businesses are more likely to have sufficient resources from which to pay their obligations, and (b) commercial debt collection is subject to far less statutory regulation than its consumer counterpart.
Consumer debt are incurred by individuals for personal, family or household purposes. Consumer debt collection practices are extensively regulated by state and federal law. Again this type of debt collection is more risky and less profitable to go after since a consumer can claim bankruptcy often and avoid any collection activity by the lawyer or the ex spouse.
At the Orange County Law office of David P Schwarz we have a lot of experience in going after debts that are owed our clients during the divorce proceedings. Please contact our office at 949 735 9266 or via the web. We can also be reached by email at firstname.lastname@example.org.