Collecting a money judgment is not the easiest thing in the world to do. Fortunately, judgment creditors have a number of tools at their disposal. One of them is the writ of execution. But like any other tool, there are right and wrong ways to utilize writs of execution. Using them right way tends to yield positive results.
Writ of Execution Basics
We have put together a list of general tips for utilizing writs of execution for judgment collection. Before we get to them, however, let us talk about some of the basics. For starters, a writ of execution is a court order allowing the local sheriff to seize and sell property on behalf of a judgment creditor.
Writs of execution are not automatically granted when a money judgment is handed down. They need to be requested by creditors. That means a creditor’s lawyer goes back to court, files the proper motion, and hopes that the court agrees and signs off on it.
Also note that there are limits to what judgment creditors can seize. Most states do not include a debtor’s primary residence in writs of execution. Either the entire residence, or a certain value thereof, is protected against seizure and sale. With that said, let’s get to the tips.
Know Your Assets
Perhaps the most important tip is to know your assets before even considering obtaining a writ of execution. Be sure you fully understand the types of assets that are exempt in your state. Once those are all taken off the table, you can clearly see what you have to work with. From there you can decide on the best path forward.
Be prepared for the possibility of filing more than one writ. Depending on the assets your debtor owns, you might have multiple opportunities to leverage assets for payment.
Run a Cost-Benefit Analysis
Before seeking out writs of execution, you might want to run a cost-benefit analysis. Why? Because there will be costs involved in seizing and selling property. You would recover all your costs in a perfect world. But what if the property does not yield the amount you are hoping for? Do you really want to spend a lot only to get very little in return?
Keep Things Close to the Vest
Next up, keep things close to the vest. Don’t send any signals that might clue the debtor to the fact that you are going to seek a writ of execution. Any suspicion could lead to the debtor taking actions to prevent you from succeeding.
As an example, imagine a debtor who has a valuable art collection you believe could be leveraged for payment. If they find out your plans to seek a writ of execution, their valuable art could suddenly disappear. Now you have the added task of finding out where it went. That only adds to the time and cost of collection.
Run a Records Search
Finally, run a records search to ensure there are no other liens on the property you hope to seize. A search of DMV records could reveal that your debtor’s classic hotrod has a bank lien attached to it. You would be in the second position upon sale and seizure. Will you get enough from the sale to make it worth your while?
Writs of seizure are exceptionally good tools for successful judgment collection. Yet they are not foolproof. Learn everything you can about them before going down that road. In the meantime, Judgment Collectors might be able to help if you are in one of the states we operate in.