Collect! Credit and Collection Software™

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How To Use Judgments In Collect!

Judgment information is handled in two places in Collect! Both are accessed while viewing a Debtor form. Judgments are normally set up after the original information has been entered for the debtor. The important fact to remember about Judgments is that Collect! completely ignores any financial information prior to the Judgment Date. Therefore, if you should need to keep pre-Judgment financial information, there are a few extra steps that you need to complete.

Judgment Date and Judgment Principal are entered using the Financial Detail form. To access this form, select the field labeled Principal on the Debtor form. If it is not important to you to keep previous financial information, then simply fill in the Judgment Date field and then the Judgment Principal field will display for you to enter the Judgment amount. If you need to keep the prior financial information for this account, you will need to post transactions to capture the accrued values, PRIOR to entering the Judgment Date.

Judgment interest is set through the Debtor form by selecting the Interest field. This will show you the Interest Detail form. Enter the Original Judgment Interest and/or the Interest Rate for the Judgment. If you need to save any prior fees or accrued interest, you should post transactions to capture these amounts, PRIOR to setting up the Judgment information.

When a Judgment is entered in Collect!, all calculations on a go forward basis will use the Judgment Principal. Any interest calculated will use the new Judgment Principal starting from the Judgment Date. Collect! changes the field labeled Principal to Judgment. The field actually changes color to notify the operator that this is now a Judgment account. All transactions and Original Principal information will be ignored prior to the Judgment Date entered.

Collect! will make sure Judgment values in the Financial Detail and the 194 Judgment Principal transaction are always synchronized. When a Judgment exists, the fields will be grayed out in the Debtor's Financial Detail. You can enable them by deleting the 194 Judgment Principal transaction. If you modify the Date or Amount on the 194 Judgment Principal transaction, the

Financial Detail will be updated automatically.

When calculating interest on Judgment accounts, Collect! will always use the Judgment Date as the earliest date to calculate interest from. Multiple 194 and 195 transactions are ignored. The active one is the most recent of each. If a Judgment Date is set, ALL other principal type transactions are ignored.

tip.gif If you need to post additional interest transactions on the account, you can use any other interest type transaction, such as the Type 495, Additional Judgment Interest.

Collect! looks for Financial Type "Interest" when adding up all the interest on the account, posted AFTER the Judgment Date. It displays this total interest on the Debtor form. However, the Judgment Interest field will only display the Original Judgment Interest amount stored in the 195 transaction.

Many users have extra information such as case number. Or, perhaps you have scanned the Judgment documents. This kind of information can easily be entered using an Attachment on the Debtor form.

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