The laws and regulations governing the enforcement of judgments differ greatly from one jurisdiction to the next. A judgment creditor may be able to have a defendant imprisoned or seize much, if not all, of a debtor’s property, depending on where the lawsuit was filed. In some cases, a creditor may be able to garnish the wages of a judgment debtor. A judgment debtor’s credit can be negatively impacted by an existing judgment debt in many cases, providing a strong incentive for the debtor to settle or pay off the judgment.
When someone successfully sues someone else, the court will usually issue a judgment. In some places, the courts play a significant role in judgment enforcement, whereas in others, such as the United States, the courts play a minor role in enforcing the collection of judgment monies, leaving it up to the plaintiff to claim what he is owed using his own resources. In the United States, judgment creditors typically have a variety of legal options for enforcing judgments, though state laws can sometimes limit these options.
When a plaintiff wins a lawsuit in the United States, the court will issue a written document stating how much money the defendant owes the plaintiff. A judgment creditor will frequently initiate judgment enforcement by contacting the defendant and requesting payment. The judgment creditor’s attorney may make this contact on the creditor’s behalf in some cases. If the creditor believes the defendant will be unable to pay the full amount of the judgment, the creditor may offer to settle for a lower amount.
If a settlement cannot be reached or the defendant fails to pay promptly, the judgment creditor may be able to seize the debtor’s assets. The creditor may begin this phase of judgment enforcement by seizing any cash assets in the debtor’s bank or investment accounts. This is sometimes referred to as a “bank levy” or “bank garnishment.” Another option is to garnish the debtor’s wages, though some states prohibit this practice while others benefit financially from garnishment attempts.
While judgment enforcement in the United States is usually subject to a statute of limitations, this period varies by state and is frequently renewable. A judgment creditor may have decades to collect his judgment in some cases. This means that a judgment creditor can continue to monitor a debtor’s financial situation and resume judgment enforcement when the debtor’s earnings or assets increase.