The previous post briefly discussed the three treatment types and the tracking of Litigation accounts using the Attorney Network and Liaison Team. In this fourth post of the Life of Managing a Portfolio series, we’ll discuss the maintenance of accounts in the Litigation and post judgment phases
4. LITIGATION PATH AND JUDGMENT MAINTENANCE
Litigation accounts are continuously monitored to ensure they are advancing through the Litigation processes as expected using a tool called Legal Inventory Management (LIM). LIM provides a snapshot of the accounts by phase as they pass from filing of the initial lawsuit to post judgment. LIM leverages a 25+ year history of account level data to determine the length of time, by jurisdiction, an account should typically spend in each phase of Litigation.
The Liaison Team uses this information to identify pockets of inventory that are delayed and either keep those accounts moving forward or cure whatever deficiencies have caused the accounts to stall. Those deficiencies may reflect changes or delays at the jurisdictional level (for example, a court system that is experiencing delays in entering judgments), or a performance issue with an individual law firm.
Monitoring is just as crucial for accounts once they reach judgment and post-judgment collection efforts begin. In this phase, our Liaison Team works closely with the Attorney Network to track each judgment. For example, if state laws allow a judgment to be collected through wage garnishment, the Liaison Team may need to track the process through issuance of the garnishment, service of the garnishment upon the employer and consumer, and regular receipt of garnishment payments. Delays may arise through difficulties in effecting service, or regulatory limits on the garnishment itself (for example, the consumer may have another garnishment that must be satisfied first). This attention to detail in each phase of collection activity protects the investment of the higher up-front costs needed to pursue the Litigation treatment.
Now that we’ve explained Litigation monitoring and Judgment Maintenance, stay tuned for Post 5 where we’ll review the Final Results!