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Why Use an Asset Accumulation Report?

  Sue McConnachie   |     Oct 18, 2018

Why Use an Asset Accumulation Report? Is money owed to you by another party? Do you have a skipped or delinquent tenant? Are you looking into ways to collect that debt? Are you trying to enforce a judgment? Are you considering legal action? Don’t make a decision just yet.

Before proceeding, it is important to consider the benefits of an Asset Accumulation Report in your decision-making process. 

An Asset Accumulation Report is a valuable tool to ensure you uncover everything you need to know prior to launching a legal action or attempting to enforce a judgment. It is useful for those working in:

  • Property management
  • Mortgage enforcement
  • Creditors remedies - Post-judgment enforcement and collections
  • Recovery services
  • Commercial collections
  • Bankruptcy and insolvency
  • Commercial litigation - Unsecured debt recovery and enforcement
  • Banking litigation

This is because Asset Accumulation Reports can identify a debtor’s assets and liabilities, allowing you to determine whether you will be able to collect on that which is owed to you, and it can assist in locating the defendant’s address for service, bank accounts and employment confirmation for garnishment purposes.

The Asset Accumulation Report can also be effective in detecting fraudulent conveyances and unjust preferences.

What Information Does an Asset Accumulation Report Investigate?

Asset Accumulation Reports not only look at assets owned by the debtor or defendant but also liabilities. This will help give you and/or your lawyer a better idea of the probability of debt recovery.

When investigating your debtor or defendant, QCR will look at the following:

Assets

  1. Real property - Locate real property assets, identifying fraudulent conveyances and spousal property.
  2. Personal property and motor vehicles - Identify personal property, including motor vehicles, equipment, goods, inventory, and accounts.
  3. Business interests and affiliations - Locate the debtor's or defendant’s business interests. We often find co-debtors and co-defendants that link debtor/defendant to other companies and businesses.
  4. Bank accounts - Identify banking relationships, which can be useful for garnishment during the debt recovery process.
  5. Rents - Identify this form of income.
  6. Wages - Locate the debtor's/defendant’s place of employment and salary, which will assist with the garnishment of wages.

Liabilities

  1. Tax liens - Locate tax liens, including PST, Corporate Tax, RST, HST and GST.
  2. Collections - Establish a history of collections to identify both debt and repayment history.
  3. Pending legal actions and judgments - Identify pending legal actions, judgments and particulars that will be significant in determining the probability of debt recovery.
  4. Credit card balances - Determine credit card debt.
  5. Secured and unsecured borrowing facilities - Identify term loans and operating lines.
  6. Mortgages - Confirm registered mortgages and executions on real property.
  7. Bankruptcies, consumer proposal and receiverships - Determine recent filings and particulars through the Superintendent of Bankruptcy.

I Have Already Started the Litigation Process – Is It Too Late to Use An Asset Accumulation Report?

While it is better to go into any debt recovery process with the most information possible, it is never too late to take a better look at your debtor or defendant to determine whether there is a probability of debt recovery.

An Asset Accumulation Report can help you at the following stages:

  • Prior to commencing a legal action.
  • During pre-litigation settlement discussions.
  • When preparing for discoveries. When preparing for an examination in Aid of Execution.
  • During garnishment proceedings and during post-litigation settlement discussions.

At Quality Credit Reporting, we have years of experience helping companies evaluate a debtor’s status, specializing in timely reports that assist in pre-judgment collections and post-judgment recovery.

We offer an effective suite of reports designed to assist you and your organization at different stages of the action, from collections through to enforcement.

For more information about our Asset Accumulation Report, download our Defendant’s Financial Worth and Whereabouts brochure or contact us today.

Defendant's Financial Worth & Whereabouts Brochure

By Sue McConnachie

Quality Credit Reporting is North America’s premiere credit reporting agency, committed to providing unparalleled, high-quality reports and services.

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