Securing a judgment in your favor is a major legal victory, but in many cases, it’s only the first step. Enforcing that judgment to collect what’s owed can be a complex, time-consuming process, especially when the debtor is unwilling to pay. At Gordon & Gordon, a leading judgment enforcement attorney in New York, we specialize in helping clients navigate this difficult phase, ensuring they successfully collect on the judgments awarded to them.
Understanding Judgment Enforcement
Judgment enforcement is the legal process of ensuring that a court-ordered judgment, typically involving the payment of money, is actually fulfilled by the debtor. While securing a judgment is crucial, enforcement can present its own challenges. Many debtors either refuse to pay or have successfully hidden their assets, making collection challenging. However, with the right strategy and legal counsel from a judgment collection attorney in New York, there are ways to overcome these obstacles.
At Gordon & Gordon, we’ve helped countless clients enforce judgments, even in challenging situations where debtors appeared to have no available assets. Below, we’ll walk you through the most effective strategies for judgment enforcement in New York.
Preparing for Judgment Enforcement
Before taking action, it’s important to conduct thorough research on the debtor’s financial situation. This step is essential to ensure that your efforts are focused where they’re most likely to succeed.
Assessing the Debtor’s Financial Situation
Understanding what assets the debtor has is critical. A comprehensive search for real estate, bank accounts, vehicles, and other personal property can provide insight into the debtor’s ability to satisfy the judgment. NYC law firms like ours use various tools to track down this information, including asset searches and public records.
Post-Judgment Discovery
If you’re unsure of what assets a debtor holds, post-judgment discovery can provide answers. This legal process allows you to obtain information from the debtor directly or from third parties, like banks or employers, regarding their financial situation. You can utilize tools such as interrogatories, subpoenas, and depositions to uncover hidden assets or income streams that can be used to satisfy the judgment.
Pre-Enforcement Considerations
Before enforcing a judgment, it’s important to review the debtor’s legal and financial standing. Are they employed? Do they own real estate in New York? Have they been making large transfers of money recently? A New York lawyer experienced in judgment enforcement will be able to guide you in making these determinations and crafting a strategy.
Common Enforcement Methods
Several well-established methods can help ensure that a judgment is paid. Below are the most commonly used enforcement techniques.
- Wage Garnishment: One of the most effective methods of judgment enforcement is wage garnishment. In New York, creditors can obtain a court order directing the debtor’s employer to withhold a portion of the debtor’s wages and remit them to you until the debt is paid. This method is particularly useful when the debtor is employed and has regular income. However, there are legal limits to how much can be garnished from a debtor’s wages, so it’s crucial to work with an experienced judgment collection attorney in New York to ensure compliance with state laws.
- Bank Account Levy: If the debtor has funds in a bank account, a New York lawyer can help you initiate a bank account levy. This process involves freezing the debtor’s account and withdrawing funds to satisfy the judgment. New York law requires that certain exemptions be observed, such as protecting a portion of the debtor’s income for living expenses, but bank levies are often a powerful enforcement tool.
- Liens on Property: Placing a lien on the debtor’s property is another common method of judgment enforcement. In New York, the court can place a lien on real estate. This lien stops debtors from selling or refinancing until the debt is paid. Once a lien is filed, it remains on the property until the debt is paid or the property is sold, making it a long-term strategy for ensuring payment.
- Seizing Property: In some cases, physical assets such as cars, boats, or valuable personal property can be seized to satisfy a judgment. This strategy requires obtaining a writ of execution from the court, after which a sheriff or marshal can take possession of the debtor’s property and sell it to pay off the judgment.
- Contempt of Court: If the debtor refuses to comply with court orders, they may be held in contempt of court, leading to additional fines or even jail time, encouraging the debtor to make good on their obligations. However, contempt of court is typically seen as a last resort and is not always pursued.
Advanced Enforcement Strategies
For cases where common methods are not effective, more advanced techniques may be necessary.
- Turnover Orders: A turnover order requires the debtor to transfer specific property or assets directly to the creditor, including cash, stocks, or other forms of valuable property. If the debtor fails to comply, they can be held in contempt.
- Charging Orders: A judgment enforcement attorney in New York can help you obtain a charging order for debtors with interests in business entities such as LLCs or partnerships. This order allows you to collect the debtor’s distributions from the business to satisfy the judgment.
- Receivership: In certain cases, the court may appoint a receiver to manage and liquidate the debtor’s assets. This procedure is often used in cases where the debtor’s business interests are complex or their financial affairs are challenging to unravel.
Interstate and International Judgment Enforcement
When the debtor has moved out of state or has assets located in another jurisdiction, judgment enforcement becomes more complicated.
- Domestication of Foreign Judgments: Under the Uniform Enforcement of Foreign Judgments Act (UEFJA), New York law allows for the enforcement of judgments obtained in other states. Once the judgment is “domesticated” in New York, you can use all the state’s enforcement tools to collect what’s owed.
- Enforcement of International Judgments: If the debtor has moved abroad or has assets in a foreign country, the process of enforcing a judgment can become even more challenging. International enforcement often requires navigating foreign legal systems, making it vital to work with a knowledgeable New York lawyer to ensure a successful outcome.
Legal and Ethical Considerations
Judgment enforcement is governed by strict legal and ethical standards. In New York, the statute of limitations for enforcing a judgment is generally 20 years, but each case must be carefully evaluated to ensure the window for collection has not closed. Additionally, certain debtor assets, such as Social Security benefits or workers’ compensation, are typically exempt from seizure, so it’s important to respect these protections and avoid bad-faith practices.
Enforcing a judgment can be a complex, frustrating process, but with the right strategies and the support of an experienced judgment enforcement attorney in New York, you can significantly improve your chances of collecting what’s owed. Whether you need help with wage garnishments, bank levies, or more advanced enforcement techniques, NYC law firms like Gordon & Gordon are here to help.
If you’re facing challenges with judgment enforcement, contact us today to schedule a consultation. Let us put our expertise to work for you and ensure you receive the compensation you’re entitled to.