I Have a Money Judgment. What Happens Next? by Jan Conte, Your Collection Solution LLC August 2006 Recommend this article

Getting a money judgment against someone is only part of collecting what’s due to you. If the judgment is acknowledged by the judgment debtor and paid, you’re golden. However, if not, the money judgment must be enforced. If it’s not enforced, it’s just a useless piece of paper.

A few facts about your money judgment in New York State:

• Your money judgment is good for twenty years.
• In New York State you are entitled to an annual interest amount of 9%.
• Your judgment should be transcribed to both the court it was entered and any county in the state that the judgment debtor may own real property (a home, rental property, etc). Transcribing the money judgment will ensure that a lien exists on the property.
• Your judgment gives you the ability to execute on the judgment debtors wages, execute on money in their bank accounts and repossess their vehicle.
• Your judgment is only good in the state it has been awarded in. In order to pursue your debtor out of state, if they have moved or work out of the state, the judgment must be recognized/entered in that state. This process is best handled by an attorney.

Collecting Your Money Judgement

You have three choices regarding the way in which you tackle collecting your money judgment:

1. You can do the research necessary to execute on wages, etc and use a Marshal or Sheriff to enforce the judgment. You must have the place of employment or bank information prior to approaching the Marshal or Sheriff as they will not do any research for you. You must call the Marshal or Sheriff’s office in advance to find out what the advance costs will be to do your execution. Check with the court that the judgment was entered to see if they offer the option of an information subpoena to be served on the judgment debtor. The information subpoena asks questions such as where are you employed? Where is your bank account located? These information subpoenas often go ignored by the judgment debtor but it is an option that may be available to you and may be worth a shot.
2. You could hire an attorney to collect the money judgment however make sure that you choose a collection attorney who is well versed in judgment collection. Confer with the attorney about the fee and costs associated prior to hiring the attorney. Please keep in mind that a good number of attorney’s do not have a collection staff or the time to do the necessary “digging” that needs to be done to locate assets and place of employment.
3. You could choose to use a collection agency. Most collection agencies have the necessary resources to do asset searches and employment searches. They have access to credit reports and data bases that the average person does not have authority to view. Collection agencies normally work on a contingency fee, which means if there is no collection there is no fee. The research is part of the collection process and should not cost you any additional money. Hiring a collection agency will save you precious time and money, so that you can focus on the positive aspects of your business and life.

Repossession

Repossession is very expensive and not always successful. Don’t repossess a rusted piece of junk that will never sell at auction. Do your research before involving the Sheriff or Marshal. You must have proof of a clear title. You can also execute on rental income, if the judgment debtor owns rental property and collects rent. The assessor’s office can tell you if the judgment debtor owns property, the type of home they own (single family, double, apartment complex), assessed value and where the debtor’s bills are mailed. Knowing where the bills are mailed gives you an idea if the judgment debtor lives there or rents it out.

Exemptions

There are times when wages are exempt, when the money in the bank account is exempt and times when you cannot repossess the vehicle due to the fact that the vehicle is titled to someone else or the car is not owned free and clear by the judgment debtor. There is a whole list of exemptions that you should be aware of. Research your state court rules for more information on exemptions and the judgment recovery process. I recommend using the New York Civil Practice Law and Rules book. You may be able to find this information on line or at your local library.

Time Frame

Please keep in mind that collecting money judgments can be time consuming and not immediate. If the judgment debtor is not working or own any assets it may not be possible to collect on your money judgment at that time. You may have to revisit the judgment debtor’s financial information every six months or a year to find out if changes have occurred which could allow you the ability to enforce your money judgment. The key is persistence and more importantly timing. Happy hunting!

This is information should not be construed as legal advice. If seeking legal advice please contact an attorney.

Jan Conte is the President of Your Collection Solution LLC, a professional debt collection agency serving Upstate New York, New Jersey and Pennsylvania.

Email: info@yourcollectionsolution.com
Company Profile: Your Collection Solution
Company URL: http://www.yourcollectionsolution.com

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