Collections process for embezzler

[tbanks]

What is the name of your state? WA

A person stole a huge amount of money from my employer. He signed an agreement/promissory note to pay it back on a schedule (to avoid felony prosecution), with the agreement that this could go to collections and he would pay any collections fees if he defaulted. Which, of course, he has. The debt is now going to collections. So I'm curious... what happens next? Is there any way other than bankruptcy that this person can get out of this debt? If he tries that, can the company file felony embezzlement charges at that point, presuming it's still within the statute of limitations?

I should clarify, there are company lawyers involved in this matter. I'm just curious how this situation could resolve itself.

 

[Veronica1228]

What is the name of your state? WA

A person stole a huge amount of money from my employer. He signed an agreement/promissory note to pay it back on a schedule (to avoid felony prosecution), with the agreement that this could go to collections and he would pay any collections fees if he defaulted. Which, of course, he has. The debt is now going to collections. So I'm curious... what happens next? Is there any way other than bankruptcy that this person can get out of this debt? If he tries that, can the company file felony embezzlement charges at that point, presuming it's still within the statute of limitations?

I should clarify, there are company lawyers involved in this matter. I'm just curious how this situation could resolve itself.

It doesn't sound to me like there is any way to get out of this debt. If the perpetrator files for bankruptcy, it's possible that the company can file charges for the embezzlement, but not knowing the exact terms/wording of the agreement that was signed it is hard to say.

 

[tbanks]

Many thanks for your feedback on this. A follow-up question: my understanding is that for the collections agency to garnish wages, even with a signed agreement, they would still need to get a court judgment. At what point would all of this go into the public record? At the completion of the judgment? How long would that likely take to complete? (I know, it would depend on the court's docket, but I'm curious as to a likely timeframe. I also expect this person to string along the collection agency with a few payments, as they did with my employer.)

I should note, I am very eager for this to go into the public record, so this person's criminal behavior can be exposed. I personally think the company should have prosecuted for embezzlement, though at the time I argued against it, an action I now regret.