Asset searches are a crucial strategy when it comes to debt collection recovery, as long as the search is run by a professional asset investigator. When done correctly, a search provides a full picture of the debtor’s financial background—even if they try to hide assets.
Learn more about the role of investigators in asset searches for debt collection.
What Is an Asset Search?
An asset search discovers a person’s or business’s potentially hidden assets to understand the party’s true financial position. This type of investigation is often performed for debt collection, legal cases, or detecting fraud.
Assets can include:
- Real estate properties
- Vehicle ownership
- Investment portfolios
- Personal property (art, collectibles, etc.)
- Offshore accounts
- Bank accounts
- Business ownership
- Intellectual property
- Digital currency
Who Performs Asset Investigations?
Many people perform asset investigations, including:
- Government agencies
- Law professionals
- Private investigators
- Debt recovery professionals
- Businesses/investors
All of the groups above can do asset searches because they have the skills, experience, and access to tools that the average person doesn’t. They also understand what investigator duties they can perform legally—which is crucial to ensure that the information can be used.
The Roles of Investigators in Asset Searches for Debt Recovery
An asset search investigator plays many different roles to ensure a successful debt collection.
The Intel Gather: Finding Everything on the Person or Business
First and foremost, the asset investigator will use different asset location strategies to gather information about the debtor. This will include:
- Financial records
- Property ownership documents
- Investments
- Full name
- Potential alias
- Personal items
- Vehicle ownership
- Cryptocurrency wallets
Investigators do this by looking through public records, social media, online marketplaces, and even surveilling the subject.
The Accountant: Understanding the Finances
The reason you want to use an asset search investigator specifically is that they can understand the financial information they find.
The investigator has the knowledge to detect unusual transactions in bank accounts, investment portfolios, and other financial records. Their discoveries can make the difference between a successful and unsuccessful asset search.
The Organizer: Finding the Information that Matters
Now that the asset investigator has all the information, such as the current name, address, and essential financial records, they cross-reference, verify, and organize the data into useful asset categories. This can include highlighting any hidden assets.
The Collaborator: Working with Various Parties to Get the Job Done
An asset investigator doesn’t just work with the client through the search process. They may work with law enforcement, lawyers, and even the debtor’s friends and family.
They will have to assist everyone with their tasks and provide detailed reports for each party to ensure everyone is on the same page and the search is successful.
When Should a Business Consider an Asset Search?
Here are some reasons that businesses decide to perform an asset search.
You’re Trying to Collect Debt
Debt collection can become a complicated process if the debtor doesn’t cooperate. An asset search can help you get your money back by uncovering assets the debtor tried to hide. You may use this type of search in bankruptcy cases or debt recovery after a court win.
A Debtor Claims They Can’t Pay
Maybe your debt collection is stalling because the debtor says they can’t pay instead of saying they won’t pay. An asset search will show whether this is true or if the debtor has undisclosed assets.
You’re About to Partner with Another Business
If you are about to partner or merge with another business, you want to perform an asset search. This can prevent you from making a deal with a business that is in debt or has existing liens on its property, and may even reveal any past legal trouble.
You Want to Invest in a Business
Similar to partnering with another business, you can benefit from an asset search before investing in a business. Not only will an asset search give you a better understanding of the business’s financial background, but it can also show the business’s strengths and weaknesses—leading to a more informed investment decision.
You’re Building a Legal Case
An asset search is a valuable resource when building a legal case against another party:
- Pre-litigation: An asset search will tell you whether or not the case is worth pursuing, depending on what assets are discovered.
- Settlement consideration: If you are offered a settlement, an asset search will let you know if the settlement is a good deal or not.
- Post case debt recovery: You’ll know where to levy the debtor’s assets so you get the money you are owed.
You Want to Investigate an Employee
Unfortunately, crimes such as corporate theft and embezzlement can happen to any business. If something seems off about your account records or an employee’s pay, an asset search can help clear things up.
Work With Ryan & Jacobs for Professional Asset Investigation Support
You need an asset search investigator with the skills and experience to know where to look for any potential undiscovered assets. Ryan & Jacobs will investigate liens, lawsuits, UCC filings, and other sources to find any and all assets of the other party.
We specialize in ethical debt collection services, such as skip tracing and asset searches.
