How to Collect a Judgement in New York
Do you have a valid monetary judgement in the state of New York? If so, in order to get paid, you’re going to need to know how to collect on that judgement. According to Article 52 of the New York State Civil Practice Law and Rules, in the state of New York, enforcement of a judgement is permissible. As per this statute, the Empire State grants liberal rights and solutions to creditors, allowing them to collect on their judgements with minimal intervention from the courts.
After a judgement has been entered, if it is required, you must issue the requisite notice of entry. Upon doing so, you can then start the process of executing the judgement so that you can receive your payment. In New York State, executing on a judgement grants creditors or the attorneys that are representing them the ability to turn the document that the judgement was issued on into currency. There are several ways that you can achieve this, including via:
- Putting a lien on real property
- Docketing judgements
- Filing applications of contempt
- Issuing of a subpoena
- Debtor or third party depositions
- Issuing orders for installment payments
- Earnings executions
- Real or personal property ownership executions
- The sale real or personal property
In order to decide which of the above-mentioned processes to use in order to collect on a judgement requires strategic decision making that is based on the information that you know about the debtor that you are seeking to collect on, as well as the debtor’s assets. This is important, as judgement enforcement certainly isn’t a standard, one-size-fits-all process.
Tips for Collecting a Judgement in New York State
The following are some tips that you can use to successfully get paid on a valid judgement in the State of New York.
- Develop a strategy. Like most states, New York grants the losing party the right to appeal, which means that a judgement isn’t official until the deadline for filing an appeal has passed. As such, you should avoid making contact with the other party before the deadline for appeal has passed, as doing so could encourage the individual who lost the case to file an appeal. Furthermore, if the judgement debtor files an appeal, the do not have to pay the judgement while their appeal is pending.
- Ensure your lien rights are perfected. Judgement debtors commonly attempt to evade creditors’ collection capabilities via property transfer or bankruptcy filing. To protect your right to fulfill a judgement in New York, creditors can secure a lien right, which is a kind of ownership interest, on the debtor’s property. Once a lien right is filed, a debtor is unable to transfer their property or file for bankruptcy without first satisfying the lien.
- Request your money. A debtor may pay a court judgement if the creditor simply asks for it to be paid. To do so, you can file a request for payment that highlights an unpaid judgement will likely appear on the debtor’s credit report.
- Get informed. There’s a chance that the debtor could force you to take collection actions. In the event that this happens, you will need to be aware of what your options are, such as property liens, wage garnishment, and bank levies.
- Discover the debtor’s assets. Debtors who don’t intend on paying a judgement won’t tell their creditors where their money is tied up – their assets; however, there are steps that you can take to find out what their assets are so that you can secure the money you are owed. For example, the court can demand that the debtor answers inquires that pertain to their assets under oath.