WHY CONDUCT AN ASSET SEARCH?
Entering into a New Business Venture
If one is considering investing in a new business, bringing a new investor into an existing company or contemplating a merger between companies, it is essential to conduct a thorough background check on the individual or corporation. Such a check also includes a comprehensive assets search.
Prior to Entering into a Lawsuit
It is important to conduct an assets search prior to filing suit against an individual or company to determine what assets or regular income is present in the event a judgment is ordered by the court (see below). It is not worth the cost of legal fees to file a suit against a person or company that will be unable to pay any court-ordered sum. It is also important to determine what assets or property could be attached on an uncontested basis once a judgment is issued, assuming victory in the suit. If the entity to be sued has nothing of value that can be taken, there is no point in entering into a suit.
Collecting on a Judgment
When the court order a sum of money to be paid as part of a civil action, a judgment is issued, this is simply a court order for the payment of funds. It is rare for the defendant to simply pay the amount ordered on the spot. The judicial system only orders payment, but collection is the responsibility of the plaintiff. A judgment will stand for ten years, but can be extended to become permanent. However, this requires that the defendant, who is now considered to be the debtor, be questioned in a deposition or hearing under oath regarding their financial status. If the debtor is going to surrender an item of property such as an automobile or boat, be certain to do an asset search before taking possession. If there are any liens against the property, taking possession may also bring with it liability for the lien.
The finances involved in a divorce can often become rather complicated. It is not uncommon for a spouse to hide assets that would be open to dispute. An asset search of the party being divorced is very important to be certain that all assets are accounted for.
What is considered a “hit” on bank searches?
Regarding bank searches, if an open, valid and current bank account is found regardless of the dollar balance, it is considered a “hit”.
What is the turnaround time on a bank search?
SINGLE STATE: 3-5 BUSINESS DAYS, NATIONWIDE 5-7 BUSINESS DAYS