Mastering Post-Judgment Collection: Secure Your Money with These Proven Methods
Table of Contents
- Introduction
- Understanding Judgments
2.1 Definition of a Judgment
2.2 Validity and Renewal of Judgments
- Collection Methods for Judgments
3.1 Garnishment of Wages
3.2 Levy of Bank Accounts
3.3 Property Liens
- Parties Involved in a Judgment
4.1 Judgment Debtor
4.2 Judgment Creditor
- Steps to Collect a Judgment
5.1 Making a Demand in Writing
5.2 Court Order for Appearance of Judgment Debtor
5.3 Requesting a Writ of Execution
5.4 Requesting an Abstract of Judgment
5.5 Filing a Satisfaction of Judgment
- Collection Actions for Non-Payment
6.1 Court Order for Appearance of Judgment Debtor
6.2 RIT of Execution
6.3 Bank Garnishment
6.4 Business Levy
6.5 Real Estate Levy
6.6 Abstract of Judgment for Property Liens
6.7 Third Party Claims
6.8 Claims of Exemption
- Conclusion
Introduction
When you win a legal case and are awarded a judgment, your journey may not end there. In order to collect the money owed to you, you'll need to navigate the process of post-judgment collection. This can involve various methods such as garnishing wages, levying bank accounts, placing liens on property, and more. Understanding the steps and procedures involved can be crucial to successfully collecting your money. In this article, we will provide a comprehensive guide on how to collect your money after obtaining a judgment.
🤔 Understanding Judgments
Definition of a Judgment
A judgment is a legal decision issued by a court that determines the rights and liabilities of the parties involved in a lawsuit. It is the final ruling that resolves the dispute between the plaintiff (the party who initiated the lawsuit) and the defendant (the party being sued). The judgment typically consists of a monetary award that the defendant is obligated to pay to the plaintiff.
Validity and Renewal of Judgments
A judgment is valid for a period of 10 years from the date it is entered by the court. However, it can be renewed for another 10 years as many times as necessary until the judgment is fully paid. This means that if the judgment debtor does not satisfy the judgment within the initial 10-year period, the judgment creditor can renew the judgment to continue pursuing collection efforts.
💰 Collection Methods for Judgments
Garnishment of Wages
One of the most common methods of collecting a judgment is through wage garnishment. This involves obtaining a court order that allows the judgment creditor to deduct a portion of the judgment debtor's wages directly from their paycheck. The amount that can be garnished is typically limited to a certain percentage of the debtor's disposable income.
Levy of Bank Accounts
Another effective collection method is the levy of bank accounts. With this method, the judgment creditor obtains a court order that allows them to freeze the funds in the debtor's bank account. The frozen funds can then be used to satisfy the judgment. It is important to provide the sheriff with detailed instructions regarding the debtor's bank account in order to ensure a successful levy.
Property Liens
In some cases, the judgment creditor may choose to place a lien on the debtor's property. A lien is a legal claim against a property that serves as security for the debt owed. By placing a lien, the judgment creditor gains a legal interest in the property and can proceed with a sale of the property to satisfy the judgment if necessary.
👥 Parties Involved in a Judgment
Judgment Debtor
The party who loses the case and owes a monetary judgment is known as the judgment debtor. Once the judgment is entered by the court, the debtor is legally obligated to pay the amount specified in the judgment. Failure to comply with the payment can result in various collection actions being taken against the debtor.
Judgment Creditor
The prevailing party in a lawsuit who is awarded the judgment is known as the judgment creditor. This party is entitled to collect the debt owed to them by the judgment debtor. The judgment creditor must take proactive steps to enforce the judgment and ensure that they receive the amount owed.
📝 Steps to Collect a Judgment
Making a Demand in Writing
If the judgment is not paid promptly after being issued by the court, the judgment creditor should make a written demand to the judgment debtor for payment. This demand serves as a formal request for the debtor to satisfy the debt and facilitates the satisfaction of the judgment.
Court Order for Appearance of Judgment Debtor
If the location of the debtor's property is unknown or if the debtor does not comply with the payment demand, the judgment creditor can request a court order for the debtor to appear in court. This order allows the creditor to examine the debtor's assets, income, and property under oath. Failure to comply with this order can lead to contempt of court charges and even the arrest of the debtor.
Requesting a Writ of Execution
To levy the debtor's property, a writ of execution is required. This legal document is issued by the court and gives the sheriff or levying officer the authority to seize the debtor's assets and satisfy the judgment. The creditor must provide the necessary information and pay the required fees to obtain the writ.
Requesting an Abstract of Judgment
Once the debt is satisfied, the judgment creditor must file a satisfaction of judgment with the court within 15 days. Failure to do so can result in liability for damages incurred by the debtor. Additionally, the judgment creditor may need to request an abstract of judgment, which is a document that places a lien on the debtor's real property and alerts others of the outstanding debt.
Filing a Satisfaction of Judgment
After the judgment is paid, it is important for the judgment creditor to file a satisfaction of judgment with the court. This document officially acknowledges that the debt has been satisfied and releases the debtor from further obligation. Failing to file a satisfaction of judgment can have negative consequences for the judgment creditor, such as inaccurate reporting of the debt on a credit report.
Resources: California Courts - Collection of Judgment
Resources: Nolo - Collecting on a Judgment
Resources: LegalMatch - Collection of Judgments
