After you analyze the statute of limitations, a buyer should then determine whether or not it is worth filing a lawsuit. One of the primary factors for determining whether it makes sense to file a lawsuit is whether the defendant is collectible. In other words, if the defendant has no assets then, even if you are successful in your lawsuit and are able to obtain a judgment, you must determine whether or not that judgment will matter. A judgment only matters if it is collectible.
As a Los Angeles Real Estate Attorney, we have the ability to do an asset search before bringing an action to determine whether the potential defendant has real estate assets for collection. In fact, in the past 12 months, Schorr Law, APC, has foreclosed on real estate to satisfy a judgment and initiated foreclosure proceedings to force a judgment debtor to pay on an outstanding debt. We were able to obtain payment on two judgments for our clients by utilizing properly recorded abstracts of judgment and then proceeding to a sheriff’s sale.
Insurance can also factor into whether a judgment is collectible. If the buyer is considering bringing an action against a real estate broker, then there may be a possibility of insurance coverage for non-intentional torts.
For more information on collectability of a judgment and a free pre-lawsuit analysis, contact us at Schorr Law, APC. 310-954-1877. www.schorr-law.com.