One of the more interesting challenges of collecting money judgments in so many states is keeping track of how things are done in each of them. Most civil lawsuits involving money judgments are state matters. Therefore, each state sets the rules by which judgments can be collected. This leads to interesting things, like Ohio’s 15-Day Demand.
’15-Day Demand’ is a colloquial term. In Ohio courts, the proceeding is officially known as a ‘Notice of Court Proceeding to Collect Debt’. It applies to nearly all money judgment cases in the state. It is also quite easy to understand.
Under the 15-Day Demand principle, judgment creditors must mail their debtors the prescribed notice informing of their intent to begin collection actions. The notice must be mailed no later than 15 days before such efforts begin.
Collection Effort Options
Judgment debtors in Ohio have access to several collection options. The two most common are garnishment and writs of execution. Creditors also have the option of requesting a court-ordered debtor’s examination prior to making a choice. The examination compels a debtor to disclose income and assets under oath.
Here is a brief look at garnishment and writs of execution:
- Garnishment – Ohio law allows creditors to garnish up to 25% of a debtor’s disposable income. They can also garnish a debtor’s bank accounts.
- Writs of Execution – Judgment creditors can ask the court for a writ of execution against a debtor’s non-exempt property. A writ of execution compels the local sheriff to seize the named property, sell it, and forward the proceeds to the creditor.
It’s interesting that in Ohio, judgment creditors cannot file liens on personal property (other than real estate). Still, judgment liens are useful tools in states that do allow them. A judgment lien works the same as any other kind of lien. It establishes a financial interest in the debtor’s property that must be satisfied before the property can be sold or transferred.
Giving Proper Notice
The idea behind the 15-Day Demand is to give debtors sufficient notice that collection efforts are about to begin in earnest. It is a fair warning sort of thing. During the 15 days, debtors have the opportunity to pay. Doing so would make further collection efforts unnecessary. If the term expires and a judgment is not fully satisfied, the creditor can begin collection.
Ideally, the 15 days would be used by a debtor to work out some sort of amicable payment plan. Believe it or not, most judgment creditors are open to payment plans as long as there is some reasonable guarantee that the debtor will abide by his end of the agreement.
Payment plans are attractive because they involve the least amount of hassle for the creditor. They also do not cost creditors a dime. On the other hand, creditors need to spend money should they choose to garnish or petition for writs of execution.
We Are Here to Help
If you are attempting judgment collection in Ohio and all these things seem confusing to you, please know that you’re not alone. It can be difficult to wrap your brain around collecting a money judgment if it is not something you do all the time. Here is the good news: we are here to help.Judgment Collectors works on behalf of clients collecting judgments in Ohio. Our experienced and professional team will work as hard as possible on your behalf with the goal of collecting the maximum amount. Contact us to learn more about services we offer on consignment. You have nothing to lose and your whole judgment to gain.