Once you file a lawsuit, first you must pursue your claims through the judicial process in an effort to obtain a judgment in your favor against the defendant(s). The length of time to obtain a judgment can vary greatly and will depend on the circumstances. If the defendant does not respond to the lawsuit, then you can obtain a default judgment at the outset of the case. Otherwise, you will need to go through stages of a lawsuit to obtain a judgment by motion or trial unless the parties reach a settlement outside of court. If you are fortunate enough to obtain a judgment, it can be jarring when you realize you must engage in additional effort to collect payment. Below is a overview summary of possible options to consider.
1. The Defendant Voluntarily Pays the Judgment Amount
If you obtain a judgment, payment is owed immediately (unless there is an appeal). The defendant may voluntarily pay or offer a payment plan to avoid collection efforts such as liens on property. This is an ideal scenario, but often a plaintiff must engage in collection efforts. As a first step, it is helpful to obtain a Writ of Fieri Facias (“FiFa”).
2. FiFa - Lien on Real Property / Motor Vehicles
There is a process for obtaining a FiFa from the court where you obtained the judgment. The FiFa is used to record a lien on the judgment debtor’s property and can assist in obtaining payment. If the defendant owns real property in other counties, you can apply to other courts to record the FiFa in those counties. If and when the judgment is paid in full, the plaintiff has a duty to cancel the FiFa in any county where it was filed.
A FiFa may also be used to perfect a lien on motor vehicles owned by the judgment debtor through a special process.
3. Garnishment of Accounts and/or Wages
Another way to collect payment is by garnishing accounts or wages of the judgment debtor through one or more garnishment actions. If any entity is holding funds in an account, it would have to release the funds for payment of the judgment. If the judgment debtor is earning wages, the plaintiff can file a continuing garnishment action against the employer to collect a portion of the wages. The continuing garnishment would remain open for 3 years with the employer periodically depositing funds into the court.
4. Sheriff's sale
There is a process for requesting the sheriff to seize and sell real property of the judgment debtor to use for payment of the judgment.
5. Post Judgment Discovery
If more information is needed to locate assets, there is a process for obtaining information from the judgment debtor through post-judgment discovery. If the judgment debtor does not timely answer or respond, then the plaintiff can file a motion to require answers. If the court enters an order requiring answers and the judgment debtor still does not respond, then the plaintiff can seek sanctions for contempt which could result in incarceration.
If you have any questions please contact us to discuss.
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