What Is a Judgment Worth?
If a judgment becomes final, several considerations come into play in deciding how vigorously to pursue collection efforts. First and foremost is the collectibility of the judgment debtor. If the judgment debtor appears to be collectible, one must consider the difficulty of reaching the debtor’s assets. For example, an individual judgment debtor may live in fine style, giving the appearance of collectibility, but his Lincoln may be leased and his home may be owned with his spouse, preventing a judgment creditor of only one married spouse from recovering money by sale of the house. Even if the judgment debtor is not married, or the judgment is against both husband and wife, there is now a good chance the home is underwater, meaning total mortgage debt exceeds its value, or there is so little value in the property as to make sale of the property not worthwhile. A judgment debtor living large on credit cards and deeply in debt is also not a good collection prospect as they generally have no savings and frequently end up in bankruptcy court.
If the decision is made to proceed with collection of the judgment, a judgment creditor has a number of tools available to recover the money owed. The most commonly used are writs of garnishment and writs of execution.
A garnishment is a means of reaching the judgment debtor’s money or property that is held by a third party (the garnishee). In order to garnish money or assets, the judgment creditor prepares a writ of garnishment which is signed by the court. The writ is then delivered to the garnishee believed to be holding the debtor’s assets. Within 14 days, the garnishee must then disclose assets held for the judgment debtor. If the garnishee discloses assets and the judgment debtor does not file a formal objection, the money held is paid to the judgment creditor. This procedure can be very effective if the judgment creditor knows where the judgment debtor banks, has brokerage accounts or where he or she is employed.
Execution is simply the seizure of assets from the judgment debtor. As with a garnishment, a writ is signed by the court directing a sheriff or qualified court officer to seize and sell the judgment debtor’s property to satisfy the judgment. It is important to note that judgments are not in themselves liens on property, so a judgment standing alone does not give a creditor rights in the debtor’s property. Further, the judgment lien permitted under the 2004 revisions to Michigan law is largely a toothless remedy, as the law does not permit foreclosure on the lien, preventing the judgment creditor from selling the assets liened to satisfy the judgment. The writ of execution must first be levied against the judgment debtor’s personal property. If the debtor does not have sufficient personalty to satisfy the judgment, it may then be levied against real estate.
Judgment creditors also have a number of tools to reach assets that a debtor has attempted to hide by improper gifts to friends or relatives, placing assets in other parties’ names, or sales for less than full value. The key to satisfying any judgment is to know the debtor’s finances, to act quickly after the judgment is final, and to be creative and persistent. It will pay off in the end.
If money is owed to you because you have been awarded a judgment in a court of law, you are a judgment creditor. The party against whom the judgment is entered is a judgment debtor. Winning a judgment in a court of law is only half the battle. Obtaining payment under the judgment is the other half. Obtaining payment from a reluctant and determined judgment debtor can turn into a lengthy and costly battle fought over a period of years with an uncertain outcome. A judgment debtor may appeal the judgment or may file bankruptcy, forestalling or preventing efforts to collect on the judgment.
CMDA Law
Recent Posts
- Michigan Expands its Earned Sick Time Law and Increases Minimum Wage
- Richards’ Article on Medicaid Estate Recovery Featured in Urban Aging News
- Jim Acho Guest on WJR Morning and Afternoon Shows to Discuss New NCAA NIL Lawsuit
- Jim Acho Files Landmark NCAA Class Action Suit
- Livonia Attorneys Participate in Detroit Mercy Law School’s On-Campus Interviews
Recent Comments
Archives
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- November 2021
- October 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- July 2012
- June 2012
- May 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- June 2011
- March 2011
- February 2011
- October 2010
- August 2010
- January 2010
- January 2009
- September 2008
- June 2008
- May 2008
Categories
- 50th Anniversary
- Allan C. Vander Laan
- Appeals and Litigation
- Appeals and Litigation Articles
- Barbara M. Moore
- Business Law
- Business Law Articles
- Carol A. Smith
- Christopher G. Schultz
- Community Association & Real Estate Law Practice Group
- Community Association and Real Estate Law Articles
- Community Association Law
- Daniel W. Ferris
- Douglas Curlew
- Education Law
- Education Law Articles
- Employment and Labor Law
- Employment and Labor Law Articles
- Estate Planning and Elder Law
- Estate Planning and Elder Law Articles
- Firm News
- Gary D. Klein
- Gerald C. Davis
- Gregory A. Roberts
- Gregory R. Grant
- Haider A. Kazim
- Insurance Defense
- Insurance Defense Articles
- Isa M. Kasoga
- Jacklyn P. Paletta
- James R. Acho
- James W. Taylor II
- Jeffrey R. Clark
- Joel Ashton
- John "Jay" Gillen
- John D Gwyn
- John M. McFarland
- Joshua J. Cervantes
- Kenneth M. Gonko
- Kevin J. Campbell
- Kimberly M. Coschino
- Kristen L. Rewa
- Latest News
- Law Enforcement Defense and Litigation Articles
- Law Enforcement Litigation and Defense
- Linda Davis Friedland
- Litigation
- Margaret A. Lourdes
- Matthew C. Wayne
- Matthew W. Cross
- Michael O. Cummings
- Michelle L. Richards
- Municipal Law
- Municipal Law Articles
- News & Events for Business Law
- News & Events for Municipal Law
- News Archive
- Norman E. Richards
- Owen J. Cummings
- Patrick R. Sturdy
- Plaintiff's Personal Injury
- Plaintiff’s Personal Injury Articles
- Presentations & Articles
- Published Articles
- Ray E. Richards II
- Real Estate Law
- Robert J. Hahn
- Robert L. Blamer
- Ronald G. Acho
- Ryan D. Miller
- Sarah L. Overton
- Shane R. Nolan
- Stanley I. Okoli
- Stephen C. Johnston
- Suzanne P. Bartos
- Timothy S. Ferrand
- Uncategorized
- Utility Law
- Utility Law Articles