When a civil case results in your favor in court, the judge or jury may award you financial damages. In some circumstances, the party who did not receive a favorable ruling, the debtor, can either refuses to follow order handed down by the court or is unable to pay the payment. Provided this occurs, you may need to take further action and will accrue incur further expenses in doing so to collect on your judgment.
Below are nine subjects to consider when collecting money subsequent to a court judgment.
1. Individuals as well as and businesses with monetary stability generally disperse monetary judgments lodged against them. This usually occurs because they would rather steer clear of disagreeable activities surrounding debt collection efforts and additional expenses.
2. In the event that an individual or business who owes these debts adamantly refuses to submit payment for a judgment or has accrued are greater than their assets, you will have extensive difficulty collecting this judgment.
3. In most states, one can carry out discovery subsequent to judgement such as formal requests for production of documents, interrogatories, depositions, and other processes, for example, that seek to uncover sources of income and the assets that a debtor has.
4. When retaining a judgment against an individual, you have the ability to garnish their wages to obtain your judgment. Many states limit how much you are allowed to garnish from wages of a debtor to 25 percent of their paycheck. In order to garnish wages, you usually are required to schedule a hearing through the court and provide evidence that the debtor owes you funds and hasn’t made payments to you. You may also garnish a bank account of an individual or business debtor.
5. If you retain a judgment against a company, you may have the ability to obtain the assistance of the sheriff to the funds in that company’s cash register that are owed to you. Businesses may also possess equipment or other assets that have the ability to be seize for their value. To keep you safe, you should leave it to the police or other professionals who specialize in property seizing functions as part of their job. Additionally, dealing with property seizing in this manner will aid you in steering clear of additional litigation.
6. The period of time that allows for you to collect judgments in the vast majority of states is ten years. Fortunately, subsequent to expiration, you can generally reactivate the judgment for an additional ten years. Therefore, even if the person or entity that you retain a judgment against doesn’t have appropriate income or assets today, further funds or assets may be attainable in the future.
7. If the person you retain a judgement against happens to file a Chapter 7 bankruptcy, you can no longer collect your funds just like other creditors.
8. The vast majority of states require you to retain the legal services of the best personal injury lawyer to assist you in your collection efforts. You can generally retain an attorney who performs collections hourly. Alternatively, you can pay the lawyer a percentage of what funds you collect.
9. In order to garner funds in a judgment against a debtor or a debtor’s property situated in another state, you will be required to document your judgment as a foreign judgment in that state where the property is located. The court is unable to demand a foreign judgment unless the debtor has adequate contact with the state. Generally, it’s advisable that you file any judgment that is foreign in the county in which the debtor resides or where the property is physically located.
To gain understanding of your legal rights and begin pursuing collection for your judgment, you may want to think about consulting a local attorney.Read more