Recording a Judgment and the Debtor’s Examination in Arizona

Each of the states that Judgment Collectors operates in has its own set of rules governing money judgments and how they can be collected. The rules in Arizona may differ quite a bit from those in other states. So if you are attempting to collect a money judgment on your own, it pays to know how the system works in your state.

In this post, we want to deal with two aspects of Arizona’s system: judgment recording and the debtor’s examination. It’s highly likely you will run into both if you successfully win a money judgment against another party. As you read the details below, keep in mind that Judgment Collectors might be able to help you get paid more quickly. We work on judgment collection cases in Arizona.

Recording a Judgment

A money judgment is a civil judgment that involves some sort of financial restitution. It could be anything: from back rent and legal fees owed to a landlord to unpaid utility bills. It is just assumed that, upon obtaining a money judgment against another party, that party will pay what is due.

Incidentally, the winning party is known as the judgment creditor. The losing party is the judgment debtor. If the debtor pays what he owes right away, the matter is concluded and both parties go their separate ways. But what if the debtor doesn’t pay up? The creditor must record the judgment before additional collection efforts can be started.

You’ll find a detailed explanation of recording in judgment on the Pima County, Arizona website. Here’s what you need to know in a nutshell:

  • Recording a judgment attaches a lien to debtor property.
  • The record is good for just 5 years; it must be renewed if the debt is not paid.
  • A failure to renew the record means all collection efforts must stop once the original record expires.
  • The county in which the judgment was entered does not notify creditors that records are set to expire.

Recording a judgment in Arizona allows a judgment creditor to proceed further. Without it, the creditor’s collection options are limited. A creditor could still work out a voluntary payment plan or accept a smaller lump sum. But in order to leverage income and assets for payment, the judgment must be recorded.

Recording a Judgment and the Debtor's Examination in Arizona | Judgment Collectors

The Debtor’s Examination

It can be difficult to know how to proceed after winning a money judgment in Arizona. Fortunately, judgment creditors have a useful tool in the debtor’s examination. Pima County explains that the “debtor’s examination is to record the assets and liabilities of the debtor.”

In Arizona, the debtor’s examination serves two purposes:

  • Creating a Court Record – During the debtor’s examination, the debtor is expected to report all his or her assets. This includes cash, real estate, collectibles, stocks and shares, and so forth. Everything reported is entered into the court records.
  • Informing the Creditor – The debtor’s examination also informs the creditor as to what assets the debtor might have. The creditor can figure out which assets are exempt and which are not. From there, a collection plan can be laid out.

Arizona debtor’s examinations can be conducted immediately following the initial court case or scheduled for the future. In either case, the debtor is expected to comply by revealing all assets in a truthful and timely manner.

Our discussion of recording judgments and the debtor’s examination in Arizona is just an overview of the two topics. There is a lot more to learn about each one. If you’re looking at collecting an Arizona judgment and you need help, consider contacting Judgment Collectors.