After winning a lawsuit, you may think you are done with the tough part. However, this is only possible when the losing party voluntarily pays the judgment. Otherwise, you will have to go through a challenging collection process. Sometimes, you may need to assess your ability to collect a judgment before you file a lawsuit. If the defendant has no assets and income, you may not be able to collect the judgment and may only incur litigation costs. In this case, you may need to hire a wslaw.nyc attorney to help you navigate the complexities of the collection process.
A judgment is issued shortly after a judge decides the case. At this point, you become the judgment creditor while the defendant is the judgment debtor. Usually, the debtor must pay the judgment in one go; however, they may sometimes ask to pay it in installments. Such a request is often granted; however, you can ask the court to change the award should they fail to make timely payments as they promised.
Judgments Against Several Defendants
If your lawsuit involves several defendants, the judgment will be divided according to who owes what. Usually, the liable defendant must pay the entire judgment if other defendants can’t pay their shares. Such is called joint and several liability. The paying defendant will pursue the others for reimbursements. But this kind of system may only apply to specific kinds of cases.
Finding the Assets of the Judgment Debtor
When a judge issues a judgment, the debtor may have to disclose their assets. They need to comply with this to avoid facing sanctions. The assets you may want to look into include money, investments, bank accounts, real estate, inheritances, jewelry, motor vehicles, business interests, and artwork. You can hire a professional to help you find assets if you think the debtor is concealing them.
Assets that Cannot be Seized
Some assets cannot be seized to satisfy a judgment. Exemptions apply to some equity in major assets like motor vehicles and homes. If the judgment debtor has a home or car equity that is beyond the exemption, you will be able to collect from the unprotected equity. Exemptions for the property of the debtor may be more limited. The debtor may not be able to protect some luxury items such as electronics and jewelry.
How to Collect a Judgment
If the judgment debtor does not pay the court award, you can garnish their income. You can take a certain percentage of their income but you cannot collect from some kids of income like government benefits. Also, you can collect from their bank accounts, business assets, or investment accounts.
