4 Ways to Collect a Court Ordered Judgment
Introduction
Winning a lawsuit is only half the battle – now you need to collect the monetary judgment awarded by the court. Collecting a court ordered judgment can be difficult and time-consuming, but with persistence and the right strategy, you can successfully claim your hard-earned money. In this article, we will discuss four methods for collecting a court ordered judgment.
1. Writ of Execution
One of the most common ways to collect a judgment is by obtaining a writ of execution. This legal document commands the local sheriff or marshal to seize the debtor’s non-exempt assets, such as personal property, bank accounts, or wages, and sell them to pay off the debt. To obtain a writ of execution, you must submit an application to the court clerk along with any required fees. It is important to act fast once you receive the writ because its validity may be limited in time.
2. Wage Garnishment
If you know where your debtor works, wage garnishment may be an effective way to collect the judgment. Wage garnishment involves the direct deduction of money from the debtor’s wages until the debt is fully repaid. The process requires submitting a garnishment order to your debtor’s employer, who will then withhold a portion of their salary each pay period.
Bear in mind that wage garnishment laws vary state by state and there are federal restrictions on how much can be withheld – typically no more than 25% of disposable wages.
3. Bank Levy
Another option for collecting your debt is through a bank levy. A bank levy allows you to seize funds directly from your debtor’s bank account(s) – provided that you have accurate account information on hand. To execute a bank levy, submit a completed application along with your judgment documentation and any necessary fees to the local sheriff or marshal’s office.
It’s crucial to act quickly once your levy is approved. The debtor may empty their bank account or move their funds to a different financial institution once they learn of the impending seizure.
4. Judgment Liens
Lastly, a judgment lien can be placed on the debtor’s real property, such as land or a house, as security for the debt owed. A judgment lien prevents the debtor from selling or refinancing their property without first paying off the debt.
To create a judgment lien, you must file the necessary paperwork with your county recorder’s office alongside any required fees. This process is typically straightforward but may require professional help depending on your jurisdiction.
Conclusion
Collecting a court ordered judgment might seem daunting, but with determination and good strategies in place, you can improve your chances of success. While no method is guaranteed to work, utilizing one or more of these four methods – writ of execution, wage garnishment, bank levy, and judgment liens –may bring you closer to recovering what is rightfully yours.