Instances when an asset search is carried out
There are certain situations of a personal or business nature in which checking for assets become essential. An asset search is a search for public records as well as records that are not available to the public. The aim is to locate personal or real estate property of an individual or corporate entity. The search also includes any liabilities that may exist against such assets, like federal or state tax liaisons, bankruptcies and judgments. Below is a look at some examples of when an asset search is carried out.
During Collection of Debts
There is no denying that it is essential for individuals and businesses to receive payments or debts that are due to them in an efficient and timely manner. It is unfortunate that cases of delays in collection of payments owed to an individual or organization are very common. Conducting an asset search is a smart and rational initial step in debt collection. It helps someone determine whether he or she should conduct the debt collection process in the first place. Information gathered from the results of asset checks can offer guidance on the most efficient collection strategy. It can help determine whether or not the debtor has enough assets to be worthy of further time and resources.
Motor Vehicle or Personal Injury Cases
When an individual has a motor vehicle or personal injury case, has suffered significant injuries, and his or her insurance coverage is limited, it is critical to conduct an asset search. Among the main aims of asset searches is to help injured parties and their attorneys locate liabilities and assets. This is especially the case if a personal injury lawyer has a severely injured client and inadequate insurance policy coverage. A search will determine whether the lawyer will settle a case for the policy limits or go for more assets to satisfy a judgment. The subject could be hiding assets such as through partnerships and family trusts. In such a case, an asset search that is carried out properly can provide the attorney with a strategic road map.
Non-disclosed or hidden assets are common during divorce. An asset check is an ideal pre-discovery tool to help a spouse or his/her attorney locate such assets. It can help divorce lawyers, divorcing couples and mediators locating hidden or unreported assets, or verify certain assets.
The search can also help in identifying entities that could be hiding assets on behalf of a subject, such as partnerships, trusts or corporations. Asset checks also help lawyers in framing their subpoenas and discovery requests in a way that the opposing party is more revealing and forthcoming in their responses. A well-carried out search provides someone with the tools needed to make sure that it is possible to properly verify a subject’s financial statement. This way, no money is left on the table for the individual and his or her client.
Due Diligence Compliance in Business
Someone may be about to get into a business agreement or hire a key employee. However, little or nothing at all is known about the person or business. An asset search can be of great use when it comes to satisfying that individual’s due diligence, such a search can help clients with their due diligence when they are considering certain factors. It could be investing in a new business, bringing in a key recruit or new investor into an existing business, or envisaging a merger between firms. Results of the search provide a comprehensive background search on an individual or corporation.
Collection of Unpaid Child Support
Many people are not receiving child support that is due to them. They are struggling to make a decent living for themselves and their children due to their child support being withheld. Carrying out an asset search on the neglectful parent or obligator is the first place to begin. Given the economic crunch and high cost of living, it has become rather difficult for a single parent to be financially stable. This is especially the case when the single parent has an ex-spouse/partner who is not fulfilling their child support obligation. It is a common occurrence for a parent to evade this responsibility. By carrying out an asset search, a single parent has the potential to reach and apply assets, something that will allow them to recover the funds due to them. The check will also provide them with valuable information that can help figure out whether or not to minimize the legal fees spent in their collections actions. In case the spouse does not have any assets, the individual and the lawyer may want to limit their collections efforts.
Tips for Choosing Asset Search Companies
When someone is planning to carry out an asset check, it is advisable to carefully select a qualified firm to help. Most people are making the mistake of relying on the Internet too much. This makes it easy for an individual to create a website that can potentially scam clients or offer invaluable information. Thus, researching various asset research companies is of great importance. This way, an individual has a better chance of getting a company that will provide the desired results.
How long an asset check company has been in business speaks volumes about their experience. A company that has been operation for at least ten years is highly recommended. When compared to a firm that has just started, a business that has been established and reputable will always provide better and faster results. A would-be client should ensure that he or she asks this question to any potential asset search firm.
It is a good idea to go for a company that has knowledge on more than just offering the results. Other services that they may offer include giving advice to clients on how to interpret the results and implement them. Asset check firms having lawyers on board can give a would-be client a basic road map on how to utilize the results of a search. This is irrespective of whether it is to recover unpaid child support, satisfy a judgment, or validate a subject’s financial statement.