One of the most interesting things about what we do as a judgment collection agency is learning about how various states regulate money judgments and collection. Needless to say, the states don’t all do things the same way. For example, did you know that Utah automatically imposes a 28-day stay when a money judgment is entered?
Every judgment creditor should know and understand the 28-day stay going in. It is something creditors need to abide by whether they like it or that. Incidentally, a court can lift the automatic stay by issuing a writ. But that will not happen unless the creditor petitions the court to do so.
What the Stay Accomplishes
Imposing an automatic stay on collection gives a judgment debtor the opportunity to protest the judgment. In simple terms, the debtor has 28 days to file an appeal. Collection efforts are put on hold during the term. More importantly, collection can be further stalled if the court agrees to hear the debtor’s complaint.
Imagine you are a judgment creditor walking out of court after winning your case. Do not expect the debtor to follow you with checkbook in hand. Also don’t expect to begin collection efforts that very afternoon. You will need to wait for the full 28 days. If the stay passes and the debtor has not successfully challenged the judgment, you are free to proceed.
Things You Can Do While You’re Waiting
Having to wait for a month may seem like a hassle, but there are things you can do while you are waiting. The first is to research the debtor and his assets. There are plenty of publicly available resources that can tell you a lot about the debtor’s property.
You can also begin working with your attorney or a judgment collection agency on an appropriate strategy moving forward. Utah allows for many different collection strategies, including garnishment and writs of execution. And yes, you and the debtor can always work out a voluntary installment plan.
The 28-day stay period is the perfect time to strategize. It is the perfect time to figure out what your options are so that you can begin collection efforts in earnest once the stay expires.
Reasons to Petition the Court
If you believe waiting the full 28 days could seriously jeopardize your ability to collect in full, you can always petition the court for a writ that lifts the stay. Courts have the discretion to do so. The question is this: what would constitute a circumstance that could convince the court to intervene?
You might have reason to believe that the debtor has a significant amount of cash in a bank account, cash that he could easily withdraw and disperse to family members in order to avoid garnishment. This would be a valid reason to lift a stay in order to prevent the debtor from doing so.
Every situation is unique, and we are not attorneys. So petitioning a court to lift the stay would be something you and your attorney would have to talk about.
We Can Help You Collect
Although we are not attorneys here at Judgment Collectors, we are experts in the field of judgment collection. We work with clients throughout Utah to find judgment debtors, make contact with them, and encourage them to pay what they owe.
Remember that winning a judgment in Utah imposes an automatic 28-day stay. You can always use that time to contact us. Give us an opportunity to look at your judgment and its collection potential. If we can help you, we would be more than happy to do so.