Judgment Collections
Introduction
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Judgment collection is the legal process of enforcing a court judgment and collecting the funds owed by the losing party, (the "judgment debtor" or simply "debtor"), to the winning party (the "judgment creditor" or simply "creditor"). This process begins when a judge issues a judgment in favor of the creditor, ordering the debtor to pay a specific sum.
The debtor may refuse to pay the sum owed to the creditor. At Monterey Peninsula Law Inc., we can compel the debtor to pay that sum. We use various legal methods to enforce the court's judgment and compel the debtor to pay the sum owed to the creditor.
The debtor may owe money as a result of legal disputes such as breach of contract, personal injury, or property damage. Regardless of the type of legal dispute, our collection professionals will work with you to develop a customized plan to enforce the judgment and recover the sum owed to you.
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The Collection Process
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Once a judgment is entered, the court directs the parties to take certain steps to enforce the judgment. We initiate the collection process and take steps to recover the sum owed to the creditor. Our first step is to serve the debtor with a legal document such as a writ of execution or a notice of garnishment. This informs the debtor that they must comply with the court's order to pay the amount owed or face legal consequences.
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Judgments can range from money judgments, property judgments, and judgment liens. The type of judgment obtained can influence the process of collection. For instance, in the case of a money judgment, we can request that the debtor's accounts be garnished or their wages be withheld until the debt is paid. This is especially useful when the debtor has a steady income stream, such as a regular job. We may also utilize judgment liens, which prevent the debtor from selling or refinancing their property until the judgment is satisfied. This gives the creditor a legal claim to the debtor's property until the debt is paid.
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If the debtor fails to comply with the judgment order, we can file a motion for contempt against the debtor, requesting that the court punish the debtor for their disobedience. This can lead the debtor to pay additional fees, fines, or even risk jail time.
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Hurdles to Collection
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A judgment is an unsecured debt, and therefore can be discharged in bankruptcy by the debtor. There is a risk that the creditor may not be able to collect on the debt if the debtor succeeds in discharging debts through bankruptcy. At Monterey Peninsula Law Inc., we can formalize a lien (a claim on property to settle debt) against the debtor's property, such as a county lien against the debtor's real property and a state lien against debtor's personal property. A lien secures the debt owed to the creditor and thus enables us to collect on the debt even in the event of the debtor's bankruptcy.
The debtor may also appeal judgment against them and in the event of default judgment (a judgment obtained due to the debtor's failure to answer or appear), the debtor may set aside the judgment for up to six months, pursuant to California Code of Civil Procedure § 473(b). We are prepared for the debtor's attempts to avoid payment and we will contest the debtor's attempts to appeal judgments against them.
Your Rights as a Creditor
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As a creditor in possession of a legal judgment, you are entitled to repayment by your debtor. Allow us to assist you in this process at Monterey Peninsula Law Inc.