To Sue or
Not To Sue
by Edward L.
Amaral, Jr., Esq.
is not always easy to make a decision when it comes to
filing a lawsuit against a debtor. Before one can choose
whether or not to sue, they should know whether the debtor
has sufficient assets to secure payment or if the debtor has
existing liabilities, judgments, and liens. The simplest and
most comprehensive way to achieve this is by conducting an
asset search through a reputable asset search company.
An asset search can
provide you or your client with important information to
determine if a lawsuit is worth filing by providing the
most significant asset that people own is usually their
home. An asset search can provide you with real estate/deed
transfer information, as well as mortgage information, to
give you a better idea of the details and value of a
important assets that can be identified include motor
vehicles, watercraft, and aircraft.
may be held by a close associate, family trust, family
member or company. An asset search can inform you of
associated businesses and relatives of the subject to point
you in the right direction.
assets are held under a corporate entity, an asset search
can provide you with the above (mortgage information, real
estate/deed transfer information, motor vehicle, watercraft,
aircraft information) as well as corporate officers,
members, associated people, Dunn and Bradstreet records, and
the person or company that you are considering suing has
filed for bankruptcy, you should be aware of this. An asset
search can reveal bankruptcy information.
other civil litigations have been initiated against the
person or company that you are thinking of suing, you may be
last in the pile once your lawsuit has finally been settled.
If an asset search uncovers this information, you may want
to settle quickly, even if you will suffer a loss.
If the individual or
company has been subject to recent judgments or lien
filings, this may be a sign that they are already in danger,
which may mean litigating is not worth the costs that will
accrue. An asset search will provide you with a history of
judgments, federal and state tax liens and encumbrances, and
uniform commercial code liens, if applicable.
To conclude, litigation
can be very expensive and is not worth the thousands of
dollars that can potentially be spent if the person/business
has nothing to attach. Other times, you or your client may
be in the process of negotiating a settlement and you need
to know the extent of the defendantís assets. An asset
search will assist you in both of these situations.