Collecting Money judgment
If you are a business owner, you will likely have to resort to litigation at some time in order to safeguard your legal rights. A monetary judgment can be obtained through litigation and enforced by a court order. The first step in collecting what is due is to get a judgment. Many defendants, however, are either unable or unwilling to pay. Fortunately, a company lawyer may enforce money judgments in a variety of ways through the legal system.
Below are some of the legal options available to a creditor in order to recover money due in accordance with a valid court order:
Writs of Execution
A writ of execution is a court order that enables the local sheriff’s deputies to confiscate a debtor’s assets to settle an existing money judgment. If your firm has a judgment against another company, for example, you can petition the court to issue a writ of execution against the debtor’s business accounts in the amount of your judgment.
Garnishment
Garnishing wages is a notion that many business owners have encountered. If your debtor is an individual, a court order to garnish earnings can be obtained. Garnishing business revenue for debts owing to the company is also an option. It’s crucial to make sure the debtor and account holder are the same person or company. You generally would not be able garnish a personal account if you have a judgment against an LLC, even if the individual is the lone member of the LLC. If the debtor is a company, your business lawyer can advise you on the best strategy to seize their business assets.
Debtor’s Exam
A debtor’s exam is much like a deposition. While the debt is outstanding, a plaintiff has the legal right to undertake an oral examination of the defendant after obtaining a money judgment. The debtor must answer inquiries about his or her money while under oath. The goal of this investigation is to offer information about the debtor’s assets to the creditor. This information is useful if your attorney discovers an underperforming or frozen asset, for example. You may be able to take the underperforming asset and turn it around to pay off your debt. You might seek the court to liquidate the asset that has been frozen. These are only a few of the numerous options that a debtor’s examination might uncover.
