Enforcement of Judgments (2024)

Related Videos:

  • Post Judgment Collection Methods
  • Getting the Money You've Won in Court: Enforcement of Civil Judgement

Terms:

Execution of Judgment:
Execution refers to an official document that directs a sheriff to take possession of a judgment debtor’s property so that it either (a) may be turned over to the judgment creditor or (b) may be sold at public sale so that the proceeds may be turned over to the judgment creditor.

Garnishment:
Garnishment refers to the process whereby a portion of the judgment debtor’s wages are deducted from the judgment debtor’s paycheck and turned over to the judgment debtor.

Judgment debtor:
A judgment debtor is one who is found liable to and, consequently, owes a financial obligation to, a judgment creditor.

Judgment creditor:
A judgment creditor is one who is successful in securing a judgment against another party (a judgment debtor).

Lien:
In this context, a lien is a legal interest that a judgment creditor has against debtor’s real or personal property.

Restraining Notice:
A restraining notice operates to freeze a judgment debtor’s specific assets so that those assets will be available to satisfy a judgment debt.


After all of the hard work before and during the trial, a party finally receives a judgment in its favor. Now what? Does the party go home, hoping that the liable party will simply send a check in the amount of the awarded damages? What happens if the monetary damages are millions of dollars and the defendant only has $50,000 in assets? Should the successful party simply expect the liable party to turn over its entire bank account? Is it automatically understood that the liable party will pay the successful party monthly payments until its debt is satisfied?

These are the questions for which law has developed overseeing the enforcement of judgments. While some liable parties will pay their debts immediately, others are less inclined to turn over their property to the other party. Some parties need more incentive to satisfy their obligations. In some cases, the successful party may ask the court to intervene and take further action so that the successful party receives the money that it is owed. This subchapter addresses the technique a party can use to enforce a judgment.

After a plaintiff receives a judgment against a defendant, the plaintiff may issue something called an “execution of judgment” upon the defendant’s property. The execution is issued by the plaintiff to the sheriff, who will, under the execution, impose a levy the defendant’s property.

So what does this mean in plain English? Upon recovering a judgment against a defendant, the plaintiff may send an official document to the local sheriff who has jurisdiction over the area in which the defendant’s property is located, informing the sheriff that he or she is to seize the defendant's designated property. Once the sheriff seizes the designated property, he or she may either turn it over to the plaintiff, or the property may be sold at a public sale so that the proceeds of such sale may be turned over to the plaintiff. The property may be real or personal property.

The sheriff may not use the execution to levy against all of the debtor’s property, and an execution that indicates that all of the debtor’s property is to be levied is improper. The execution may only pertain to enough of the debtor’s property so that the debt can be satisfied, along with interest and costs.

If the execution refers to more property than will satisfy the debt, interest and costs, the sheriff (or execution officer) should make a division of the property and only sell enough to cover the designated amount. For example:

Steve secures a judgment against Adam and issues an execution to the Sheriff of Monroe County. The execution notifies the Sheriff that he is to levy upon Adam’s two cars, to be sold at public sale, so that Steve can obtain his $5,000 judgment (including interest and costs). One car has a fair market value of $10,000, and the other car has a fair market value of $7,000. The house and two cars are located in Monroe County. In this scenario, the Sheriff should levy upon the second car (worth $7,000), sell it in a public sale, and turn $5,000 of the proceeds over to Steve. If the Sheriff fears that the sale of the second car will not generate enough proceeds to cover the $5,000 debt, the Sheriff should levy upon the first car (worth $10,000) as well. If the sale of the $7,000 car generates enough proceeds to satisfy the judgment, the second car should not be sold.

It should be noted that

“[f]orced sales of property usually do not bring full value.” -Griggs v. Miller, 374 S.W.2d 119 (Mo. 1963).

Thus, levying property to sell it for the purpose of recovering a judgment is inefficient. It should only be used if the debtor will not or cannot pay the judgment from his or her other funds.

Not all property, however, is necessarily subject to execution. Many jurisdictions have specific exemptions to cover certain property that is not subject to execution. One popular exemption from execution is an income exemption. For example, federal law provides for an income exemption that limits the garnishment of wages to a maximum of, the lesser of:

  • 25% of the debtor's total income; and
  • the amount of income generated by the defendant over and above the federal minimum wage times 30.

See 15 U.S.C. §§ 1673-1674.

Some states provide their own income exemptions. For example, New York provides that 90% of the debtor’s income from wages is exempt from execution. (Income from other sources, like dividends or capital gains, however, may not be exempt). The reason for exemption statutes is to

“relieve the person exempted from the pressure or claims hostile to his dependents’ essential needs as well as his own personal ones, [so as] not to relieve him of his familial obligations and destroy what may be the family’s last and only security, short of public relief.” -Schlaefer v. Schlaefer, 112 F.2d 177, 185 (D.C. Cir. 1940).

But what happens if a judgment creditor does not know what property the judgment debtor has? Without knowing what property to which the execution should correspond, the judgment creditor may encounter difficulties in execution. It is for this very reason that jurisdictions have developed broad discovery rules so that a judgment creditor may examine the judgment debtor's finances to determine the judgment debtor’s assets.

If the judgment or order awards the plaintiff possession of real property, through execution, the sheriff can forcibly evict the judgment debtor from the real property.

If a judgment debtor refuses to obey a judgment or order, he or she may be punished for contempt of the court. See New York Civil Practice Law and Rules § 5104.

In most jurisdictions, one’s home is exempt from execution to satisfy a money judgment. In such a case, the judgment creditor will often put a lien on the judgment debtor’s real property. Although the debtor cannot be evicted from the house under this exemption, a lien operates to give the judgment creditor a legal interest in the real property. This legal interest lasts only until the judgment is satisfied. If the real property is ever sold while the lien is still operable, the judgment creditor will be entitled to a certain amount of the proceeds so as to satisfy the judgment, interest and costs. After satisfaction of the judgment, however, the judgment creditor’s interest in the property is extinguished.

A judgment creditor may also, through appropriate legal means, stop the judgment debtor from disposing of the judgment debtor’s assets, so that, eventually, the judgment creditor may reach them. This is commonly known as a “restraint” on the judgment debtor’s assets. A restraining notice may be served on the judgment debtor himself or herself, or on a third party. For example, a restraining notice may be served on a bank, which will have the effect of freezing the debtor’s bank accounts in that bank.


Related Videos:

  • Post Judgment Collection Methods
  • Getting the Money You've Won in Court: Enforcement of Civil Judgement
Enforcement of Judgments (2024)

FAQs

Enforcement of Judgments? ›

Under U.S. law, an individual seeking to enforce a foreign judgment, decree or order in this country must file suit before a competent court. The court will determine whether to recognize and enforce the foreign judgment.

What is the enforcement of Judgement? ›

What is judgment enforcement? After you have sued your debtor and won, the court may award you a money judgment or order. If the judgment debtor fails to pay the amount ordered by the court, the judgment creditor will have to apply Enforcement of Judgment Law to enforce the judgment.

How is a judgment enforced in Texas? ›

Request a Writ of Garnishment

A writ of garnishment orders a third party (like a bank) to turn over property to settle a judgment. Courts grant writs of garnishment for bank accounts (this is called a bank levy) and even paychecks. Our judgment collection attorneys can assist you with garnishment procedures.

What are the four types of judgments? ›

The pretrial types of judgments are as follows: Confession of Judgment, Consent Judgment, Default Judgment. And Summary Judgment.

How long do you have to enforce a judgment in NY? ›

A judgment is good for 20 years, but if the plaintiff wants to enforce the judgment against land it is only good for 10 years unless the plaintiff renews it for another 10 years.

What are considered Judgements? ›

A judgment is an official result of a lawsuit in court. In debt collection lawsuits, the judge may award the creditor or debt collector a judgment against you. You are likely to have a judgment entered against you for the amount claimed in the lawsuit if you: Ignore the lawsuit, or.

How does the court enforce? ›

The Supreme Court has no power to enforce its decisions. It cannot call out the troops or compel Congress or the president to obey. The Court relies on the executive and legislative branches to carry out its rulings.

What happens if a defendant does not pay a judgment Texas? ›

If a defendant does not pay a judgment, the plaintiff can try to enforce the judgment by filing another lawsuit. For example, if the defendant owns several cars, the plaintiff can sue to have the car transferred to the plaintiff.

How long can a judgment be enforced in Texas? ›

Do Judgments Expire in Texas? Judgments awarded in Texas to a non-government creditor are generally valid for ten years but they can be renewed for longer. If a judgment is not renewed, it will become dormant. You can attempt to revive a dormant judgment in order to continue to try and collect the debt.

What happens if you don't pay a judgment in Texas? ›

If you are sued and can't pay, the creditor can get a judgment in court against you for the money you owe, plus interest. Being “judgment proof” means that your property and income can't be seized by creditors, because it is “exempt” by law from the creditor's claims.

What is the difference between judge and judgment? ›

A "Judgment" is a separate document that a judge signs and sets forth the judge's ruling at the end of an adversary proceeding.

What are the 3 elements of judgment? ›

But the judgment is composed of three elements: subject, attribute, and copula. To these three elements of the judgment correspond the three elements of the proposition: two terms, which express the subject and predicate or attribute, and the copula, which unites them.

What are the three phases of the judgment? ›

He speaks about 1) judgment at the cross; 2) judgment in the preaching of the gospel; and 3) judgment at the end.

Can you go to jail for not paying a Judgement in NY? ›

If you don't answer the questions in a timely and truthful manner, the judgment creditor can file a motion for contempt with the court. At this point, you can be fined or jailed. You can't be put in jail for not paying the debt, but you can go to jail for failing to answer the information subpoena.

Can a judgment creditor take my house in New York? ›

In New York, a judgment lien can be placed on a judgment debtor's real property or personal property to secure the collection of a money judgment. Real property is real estate, such as your house, condo, or other land. This means that in New York, a judgment creditor can place a judgment lien against your home.

How long do you have to pay a Judgement ticket in NY? ›

If you do not pay or dispute your ticket within approximately 100 days, it will go into judgment.

What makes a judgement invalid? ›

Several reasons can render a judgment void as a matter of law including, (1) lack of subject matter jurisdiction, (2) lack of personal jurisdiction, (3) lack of or improper service of summons, (4) default improperly entered, and (5) a default judgment exceeding the amount demanded in the complaint.

How do you get around a judgement? ›

How To Resolve A Judgment Against You
  1. pay the balance due in full;
  2. work with the creditor to settle the debt or work out an agreeable payment plan;
  3. allow the creditor to seize your assets in payment of the debt;
  4. repay the debt involuntarily through a wage garnishee;

How do I get rid of judgement? ›

Removing A Judgment from Your Record

There are only three ways in which a judgment can be made to go away: paying the debt, vacating the judgment or discharging the debt through bankruptcy.

Who does the court rely upon to enforce its decisions? ›

The judicial branch, in turn, has the authority to decide the constitutionality of federal laws and resolve other disputes over federal laws, but judges depend upon the executive branch to enforce court decisions.

How powerful is a judge? ›

Judges are key to the fight for civil rights

Judges provide instructions to juries prior to their deliberations and in the case of bench trials, judges must decide the facts of the case and make a ruling. Additionally, judges are also responsible for sentencing convicted criminal defendants.

Who is supposed to enforce the law? ›

The job of the police is to enforce the law.

What assets Cannot be seized in a Judgement in Texas? ›

In fact, Texas offers some of the strongest protections in the United States for the “homestead,” which is defined as a house and up to ten (10) acres of land in an urban area like the Houston-Galveston Metro area; a house and up to one-hundred (100) acres of rural land for a single person; and a house and up to two- ...

Can you negotiate after a Judgement? ›

Negotiate With the Judgment Creditor

It's never too late to negotiate. The process of trying to grab property to pay a judgment can be quite time-consuming and burdensome for a judgment creditor.

What property is exempt from a Judgement in Texas? ›

Your homestead, which is the home you live in most of the time, is protected from most judgment creditors. A homestead can include up to 10 acres of urban property (single or family) and up to 100 acres of rural property (single) and 200 acres (family).

How many times can a judgment be renewed in Texas? ›

art. 2031. A judgment lien continues for a period of 20 years from the date of the filing of the writ of execution, and the lien may be renewed once for a period of 20 years.

What happens after a default Judgement is issued in Texas? ›

Once entered, the default judgment permits a plaintiff to act quickly and enforce the terms of the judgment. A plaintiff may request an abstract of judgment. An abstract of judgment permits the plaintiff to acquire judgment liens on your real and personal property.

Do Judgement liens expire in Texas? ›

A judgment lien lasts for ten years. According to Section 52.001 of the Texas Property Code, a judgment lien cannot attach to any real property that is exempt from seizure or forced sale under Chapter 41 of the Texas Property Code.

Is it hard to collect on a Judgement in Texas? ›

It is very difficult to collect a money judgment in Texas. Our law provides that only non-exempt property of the judgment debtor may be seized to satisfy the judgment. Most judgment debtors do not have non-exempt property; in other words, most people have only exempt property.

How do I vacate a Judgement in Texas? ›

You must file a Motion to Set Aside Default Judgment and Notice of Hearing within 30 days of the date the default judgment was signed by the judge. See Texas Rule of Civil Procedure 329(b).

What percentage should I ask a creditor to settle for after a Judgement? ›

Most obligations settle between 30%-50% of the original value. If the debt collection agency is unwilling to accept any settlement, you may negotiate a payment plan with them. Payment plans can keep you out of court, and you won't need to fork over a large amount of cash at once.

How important is judgment? ›

Good judgement includes prioritising, meeting deadlines and carefully planning, which are tools that enable us to effectively cope in difficult and stressful situations. Making decisions which fail to consider the future can lead to high levels of stress when we have to rush deadlines and deal with pressing problems.

Do judge shows pay Judgements? ›

The show pays the judgment from a fund reserved for each case, paid for by the show's advertising and syndication revenue; the defendant and plaintiff alike are both compensated with an appearance fee.

What are the two types of judgment? ›

There are two types of judgments; judgments that are discriminating, and judgments that are evaluative. Judgments that are discriminating (i.e. I prefer X over Y) reflect personal preferences and subjective opinions.

What do you do once you have made a judgement? ›

If a judgment has been entered against you, there are a few options available to you. These include paying the judgment, appealing the case, or filing a motion to rehear. If you fail to act, a number of other actions initiated by the Judgment Creditor may occur.

What does judgment lead to? ›

Judgement makes you Self-Critical

By constantly seeing the bad in others, we train our minds to find the bad. This can lead to increase in stress. Stress can weaken the immune system and cause high blood pressure, fatigue, depression, anxiety and even stroke.

What is the process of judgment? ›

Judgment means the final decision made by a court or tribunal. After the judges consider all the relevant evidence of the legal trial and consider all rights and obligations, the plaintiff and defendant will receive the final ruling.

What are the rules of judgement? ›

The Code states that a final judgment must be made "when the suit is ripe for making a judicial decision." The judgment must contain the names of the parties, the court, the final date of oral argument, the facts, and the reasons for decision subject to some exceptions.

What happens at the final judgment? ›

On the last day, all the dead will be resurrected. Their souls will then be reunited with the same bodies they had before dying. The bodies will then be changed, those of the wicked to a state of everlasting shame and torment, those of the righteous to an everlasting state of celestial glory.

How do I enforce a Judgement in New York? ›

The levy on, or seizure of, a Judgment Debtor's personal property by the use of a property execution is the most common method for enforcing a money judgment.

What happens after 7 years of not paying debt? ›

Although the unpaid debt will go on your credit report and cause a negative impact to your score, the good news is that it won't last forever. Debt after 7 years, unpaid credit card debt falls off of credit reports. The debt doesn't vanish completely, but it'll no longer impact your credit score.

What is exempt from a Judgement in New York? ›

Salary That Can't be Taken To Pay Money Judgments

But, salary can't be garnished if after taxes, it is less than 30 times minimum wage. For example, if minimum wage is $13.00 an hour, if the debtor earns $390 per week or less after taxes, all of the money is exempt from garnishment.

Do Judgements expire in NY? ›

New York State judgments are valid for 20 years. A judgment can act as a lien on real property for ten years which may be extended for an additional term if you to take affirmative action.

Can a Judgement creditor take my car in NY? ›

Cars are personal property, and that means that judgment creditors can typically take and sell them.

Does NY allow bank account garnishment? ›

New York is one of the few States where judgment creditors (meaning creditors, or their debt collectors, who have attained a judgment against a debtor for unpaid debts) are required to take certain steps before being able to levy against or restrain a debtor's bank account.

What happens if a defendant does not pay a judgment New York? ›

Default Judgments

The default judgment usually gives the plaintiff the right to collect the amount of money that was asked for in the complaint, plus interest and court costs. The judgment will appear on the defendant's credit report, and it can be there for up to seven years if it is not paid.

What is the statute of limitations on Judgements in NYS? ›

Summary: The statute of limitations on most debt in New York is just three years. This means that creditors and debt collectors only have three years from the date of the last activity on an account to sue someone for a debt.

Can a Judgement be renewed after it expires near New York NY? ›

Fortunately, because a judgment is valid for 20 years and can only act as a lien for 10 years, New York allows you to extend. There are two ways for the holder or assignee of a valid NY debt collection judgment to extend the judgment as long as it has not been satisfied, settled, or paid in full.

How long can a judgment be enforced in Illinois? ›

Illinois law governs the enforcement and resurrection of judgments. Under Illinois law, judgments have an enforcement time limit of seven years from the date of their entry.

How long can a judgment be enforced in Ohio? ›

But a judgment from an Ohio court is valid for 5 years, and then becomes dormant unless revived, giving creditors the ability to collect on judgments for much longer. Section 2325.18(B) sets Ohio's statute of limitations for judgment enforcement at fifteen years.

How long does it take to enforce a judgment in California? ›

You have 10 years to enforce your judgment. But, if you cannot collect the whole judgment in that time, you can get 10 more years to collect the debt. File a form called Application For and Renewal of Judgment (EJ -190) and Notice of Renewal of Judgment (EJ-195) . You will have to pay a fee.

How long can a judgment be enforced in Florida? ›

A judgment is good, and can be enforced, for up to 20 years. That seems like a long time, and it is. A judgment is good for 10 years and Florida allows a creditor to “renew” a judgment before the expiration of the 10 years for an additional 10 years, thus giving a judgment almost unending life.

What happens if a defendant does not pay a judgment Illinois? ›

If the debtor still doesn't pay, then the creditor can come back to court to collect the money. There are several ways for the creditor to collect the money from the debtor. A few ways include taking money from the debtor's bank account or garnishing the debtor's wages.

Can you go to jail for not paying a Judgement Illinois? ›

Answer. Although there's no debtor's prison, it's possible to wind up in jail in a collection case. But, not because you owe money, or can't pay it. Jail can only happen if you're able to pay, and refuse to, or if you miss a court-ordered court date.

How long before a debt becomes uncollectible in Illinois? ›

On debts based on written contracts, the statute of limitation is 10 years. On unwritten contracts, it's 5 years.

What happens if I can't pay a Judgement in Ohio? ›

If the collector receives a default judgment, it will be able to collect as much money as it asked for in the lawsuit. This could lead to your wages or bank account being garnished, or a lien being put on your property. Please note, however, that you cannot be sent to jail for failing to pay a debt or judgment.

What is a dormant judgment? ›

What is a Dormant Judgment? After the time frame defined in a jurisdiction, a judgment expires. After a judgment expires, it becomes dormant. This means the plaintiff or creditor has waited too long to take action to collect on the judgment. Just because a judgment has lapsed, that does not mean it has gone away.

What personal property can be seized in a Judgement in Ohio? ›

And some states also allow judgment liens on the debtor's personal property -- things like jewelry, art, antiques, and other valuables. In Ohio, a judgment lien can be attached to real estate only (such as a house, land, or similar property interest).

Can you go to jail for not paying a Judgement in California? ›

If you have been served with an Order to Appear and fail to go to the hearing and have not paid the judgment, including post-judgment costs and interest, a bench warrant may be issued for your arrest.

How do I get rid of a Judgement in California? ›

How to ask to cancel the judge's decision
  1. Fill out the Notice. Fill out a Notice of Motion to Vacate Judgment and Declaration (form SC-135) ...
  2. Make copies. Make 2 copies of the Notice.
  3. File the Notice and pay the filing fee. Give the original and the 2 copies to the court clerk. ...
  4. Go to your new court date.

What is a memo of costs after judgment? ›

A Memorandum of Costs After Judgment includes a detailed list of the expenses incurred during the legal proceeding, along with documentation to support the claims. The document must be filed within a specific time frame, which varies by jurisdiction, and must be accompanied by the appropriate supporting documentation.

What happens if I can't pay a Judgement in Florida? ›

You can't go to jail for failing to pay a debt or a judgment. However, if you do not pay a debt, or if a judgment is entered against you, this information can be reported to credit bureaus and made a part of your credit history. This information can be reported for up to seven years on your credit reports.

Do Judgements expire in Florida? ›

Presently there is a Florida statute that limits judgment liens to 20 years,3 and there is a Florida statute that limits “actions” on certain judgments to 20 years and other judgments to five years. There is, however, no statute or court rule that places a time limit on the execution of judgments.

Can your bank account be garnished in Florida? ›

In Florida, bank account garnishment is authorized by Chapter 77 of the Florida Statutes. Under Section 77.03, a judgment creditor can request that a court issue a writ of garnishment. Once issued, the creditor serves the bank with the garnishment.

Top Articles
Latest Posts
Article information

Author: Nathanial Hackett

Last Updated:

Views: 6424

Rating: 4.1 / 5 (52 voted)

Reviews: 91% of readers found this page helpful

Author information

Name: Nathanial Hackett

Birthday: 1997-10-09

Address: Apt. 935 264 Abshire Canyon, South Nerissachester, NM 01800

Phone: +9752624861224

Job: Forward Technology Assistant

Hobby: Listening to music, Shopping, Vacation, Baton twirling, Flower arranging, Blacksmithing, Do it yourself

Introduction: My name is Nathanial Hackett, I am a lovely, curious, smiling, lively, thoughtful, courageous, lively person who loves writing and wants to share my knowledge and understanding with you.