Debt recovery files do not all require the same information. Before commencing legal action, you may need to understand the debtor’s overall financial position. When arranging service, a current address may be the priority. After judgment, bank, employment or real estate information may be needed to support enforcement.
Choosing the right report starts with identifying the next decision in the file.
1. Before Commencing Legal Action
Legal action can require significant time and expense. Before proceeding, you need enough information to assess the debtor’s current financial position. The amount owing is important, but so are the assets, existing liabilities and other claims that may affect recovery.
QCR’s Asset Accumulation Report can identify real property, personal property, motor vehicles, business interests, bank relationships, rents and wages. It can also locate secured and unsecured liabilities, including mortgages, legal actions, judgments, collections and insolvency proceedings.
This broader financial picture can support decisions about legal action, settlement discussions or further investigation.
2. When You Need to Locate the Debtor
An outdated address can delay service and leave important questions unresolved.
A Debtor Status Report is designed to help locate the debtor for service and identify information that may assist with recovery. Depending on the information available, this may include assets, business interests, bank relationships and wages.
If the immediate requirement is simply to obtain a current address for service, a Skip Trace Report may be the more appropriate starting point. Defining the objective first helps determine how much information the file requires.
3. During Settlement Discussions or Discoveries
Pre-litigation settlement discussions and discoveries often require more than information collected when the account was originally opened.
Current information about real estate, business interests, secured borrowing, legal actions, judgments and insolvency proceedings can add useful context to the debtor’s financial position. It may also help identify whether circumstances have changed since the debt was incurred.
A report does not determine whether a settlement should be accepted. It gives the legal team and client more complete information on which to base that discussion.
4. After Judgment
Obtaining a judgment is an important step, but enforcement may require more specific information.
QCR’s Debt Recovery Reports can assist when preparing for an Examination in Aid of Execution, considering garnishment proceedings, pursuing available assets or locating the debtor.
Depending on the next step, a focused report may be suitable:
- Bank Report: Can assist in locating or confirming bank relationships and provide account information disclosed by the source.
- Employer Report: Can help locate a current place of employment and obtain available employment particulars.
- Real Estate Locate Report: Can identify property ownership across Canada, subject to provincial and source availability.
- Land Title Sub-Search: Can confirm ownership and provide available information about mortgages, encumbrances and assessed value.
The appropriate report will depend on what is already known and the enforcement option being considered.
5. What Does the File Need to Establish Next?
Before ordering a report, identify the practical question that needs to be answered:
- Are you deciding whether to commence legal action?
- Do you need to locate the debtor for service?
- Do you need a broader view of assets and liabilities?
- Are you looking for specific bank, employment or property information?
Once that question is clear, it becomes easier to select a report that fits the stage and requirements of the file.
QCR offers a comprehensive suite of Recovery / Legal Reports for use before legal action, during settlement discussions and discoveries, and when enforcing a judgment.
Request a sample report or contact QCR to discuss the information required for your file.
Tags: Recovery / Legal
