How do you collect an judgement for $11Kfrom an independent building contractor

[adjusterjack]

If the contractor has an LLC (or corp) and the work contract was with the LLC (or corp) attaching personal assets could pose another level of difficulty.

 

[quincy]

If the contractor has an LLC (or corp) and the work contract was with the LLC (or corp) attaching personal assets could pose another level of difficulty.

It is rarely easy to collect on a judgment. In Texas, it is even more difficult. And, certainly as described here by tele310, there are additional challenges.

It is never a good idea to pay a contractor in full for a job before its completion and subsequent inspection. You not only lose whatever leverage you had, you often wind up with only a judgment that cannot be satisfied.

 

[adjusterjack]

It is never a good idea to pay a contractor in full for a job before its completion and subsequent inspection.

My way is pay as they go. Never anything up front. If they ask for money for materials, either they have credit with their suppliers or they give me the list and I buy the materials myself. That way, if the contractor craps out, I have all the materials safely ensconced in my back yard ready to go.

On a small job I pay on satisfactory completion. On a large job I divide it into phases and pay some at the completion of each phase.

If the contractor wants the work (they do), he does it my way or the highway. Been doing that successfully for 40 years.

 

[quincy]

My way is pay as they go. Never anything up front. If they ask for money for materials, either they have credit with their suppliers or they give me the list and I buy the materials myself. That way, if the contractor craps out, I have all the materials safely ensconced in my back yard ready to go.

On a small job I pay on satisfactory completion. On a large job I divide it into phases and pay some at the completion of each phase.

If the contractor wants the work (they do), he does it my way or the highway. Been doing that successfully for 40 years.

That is certainly one way to operate. I generally don’t object to putting down a sizable initial deposit with the balance paid at the end. But I do a pretty thorough background check in advance on any contractors I’ve hired and have never had a problem.

 

[Taxing Matters]

You might be able to have a car seized and sold - which probably won’t satisfy the entire judgment, but this would at least whittle down the amount owed on the judgment.

Seizing a person's car and doing a forced sale to pay part or all of a judgment often just isn't going to pan out. When I collected taxes for the IRS I only ever seized one car. The main reason for that is that many vehicles had liens against the title for the loan the buyer obtained to pay for it. Quite often the owner owed more to the lender than the car would fetch in a normal sale. And in a forced sale the bids come in well under fair market value because the bidders don't get a chance to have the car checked out by a mechanic before the sale. So they bid low to account for the increased risk they take. The one car I did seize was more to make a point to the taxpayer rather than collecting any significant money. (That kind of seizure cannot be done by the IRS today.) But it got the taxes paid. What I didn't know was that while the car was titled in the husband's name it was the car his wife drove. And apparently all hell broke out between them when she found out what happened to what she regarded as her car. He paid the taxes owed within a few days to get his wife's car back. That was just luck on my part, I wasn't expecting that at all.

 

[quincy]

Seizing a person's car and doing a forced sale to pay part or all of a judgment often just isn't going to pan out. When I collected taxes for the IRS I only ever seized one car. The main reason for that is that many vehicles had liens against the title for the loan the buyer obtained to pay for it. Quite often the owner owed more to the lender than the car would fetch in a normal sale. And in a forced sale the bids come in well under fair market value because the bidders don't get a chance to have the car checked out by a mechanic before the sale. So they bid low to account for the increased risk they take. The one car I did seize was more to make a point to the taxpayer rather than collecting any significant money. (That kind of seizure cannot be done by the IRS today.) But it got the taxes paid. What I didn't know was that while the car was titled in the husband's name it was the car his wife drove. And apparently all hell broke out between them when she found out what happened to what she regarded as her car. He paid the taxes owed within a few days to get his wife's car back. That was just luck on my part, I wasn't expecting that at all.

True. A single car is probably not going to make much of a dent in what is owed.

 

[tele310]

Thanks for all the responses. But I think I am up the creek without a paddle.
As far as I know he is not a licensed contractor. He is a "handy"man (handy part is still questionable) who did some small jobs around my house and I was satisfied with his work. When I want to extend my kitchen outward (into my yard), I questioned him about how he would do it and he gave me a sound plan (mind you I am not construction worker or anything close). So I gave him this big job. And stupidity of me, I paid him almost in full due to his couple of sob stories, during the process, trusting that he will finish the job.
This was a very expensive lesson I believe.

 

[quincy]

Thanks for all the responses. But I think I am up the creek without a paddle.
As far as I know he is not a licensed contractor. He is a "handy"man (handy part is still questionable) who did some small jobs around my house and I was satisfied with his work. When I want to extend my kitchen outward (into my yard), I questioned him about how he would do it and he gave me a sound plan (mind you I am not construction worker or anything close). So I gave him this big job. And stupidity of me, I paid him almost in full due to his couple of sob stories, during the process, trusting that he will finish the job.
This was a very expensive lesson I believe.

The good news is that your judgment is valid for 10 years - and renewable - so that, what you cannot collect now, you could be able to collect in the future. Just keep track of the fellow so you can move fast to attach any non exempt assets should he acquire any.

Good luck.