Don't Judge the Judgement - What Does it Really Mean?

Have you ever found your own justice, filing an action against someone on your own, or with the help of an attorney, and received a judgment?  Have you ever had a judgment taken against you or your business?  If so, then you should know about collecting on judgments.  If you owe someone money and you are worried about how you will pay or be forced to deal with it, then this article will help!  As usual, I offer tips on the who, what, where and why of the law!

Our starting point is the receipt of a judgment, so that means if you are the creditor, then you won!  And if you are the debtor, then you lost!  Step number two is the collection process.  After all, a judgment is just a piece of paper unless and until the creditor acts on it!  If you are the creditor, your next steps are called "supplementary proceedings" and you can take the debtor into court and make him/her answer questions under oath (and under the threat of contempt) to tell you about his assets, bank accounts, vehicles, personal and real property (called a Citation to Discover Assets).  You can even find out about the Rolex he is wearing!  This way, the creditor can find out about your job, your house, your income, your living expenses and the like - all in order to determine if you can pay the judgment, or if you own something that can be sold to satisfy the judgment.  

If there are insufficient assets, then the creditor can garnish your bank account (often called a non-wage garnishment).  This is how accounts get "frozen".  If the creditor finds out about your bank account by the citation interview (above), then he can send a citation (third-party) to the bank and the bank must freeze one and a half times the amount of the judgment to preserve it for the creditor.  The bank must comply with this by law.  Regardless of whether the creditor finds out about property, money or wages, the creditor can ask the bank or the party holding it to turn it over, or they can apply to the court for a "turnover order."  Like any court order, the party holding the money or property must turn it over to the creditor or risk fines and penalties.  

Another method is to garnish wages (often called a wage-deduction) and take money from your paycheck in order to satisfy the judgment.  While there are limits on this, the employer is required by law to abide by it. Finally, other methods of collecting on judgments include liens and actions against real estate.  Once a judgment is entered in a court, that judgment becomes a lien on real estate, and the creditor can force a sale of the real estate in order to satisfy the debt owed.  While there are certain rules and exemptions, the creditor can get paid after the mortgage and other lienholders are paid, barring some exceptions.  

The bottom line, is that if you have a judgment against an individual or an entity as a creditor, or you are a debtor with a judgment against you or your company, there are various methods that parties can utilize in order to turn the judgment order into dollars and cents.  So that you have the right information in order to proceed as a creditor or debtor, you should always consult with a trusted attorney.  For more information, please email me at: alisalevin@yahoo.com, or see my website at: www.alisalevin.com.