Judgment enforcement is the process of enforcing the provisions of a judgment obtained in civil court. When it is a money judgment, enforcement is a matter of collecting payment. Writs of execution are one of the many tools that judgment creditors have at their disposal. They generally aren’t the first tool used, but they remain in the toolbox, nonetheless.
A writ of execution is a court order allowing for the seizure and sale of targeted property. Some states use other terms to describe the same court order. I will stick with ‘writ of execution’ because it is the most commonly utilized term.
The Basics of How It Works
The basics of the writ of execution are pretty straightforward. A judgment creditor (the winning party in a money judgment case) requests a writ of execution from the court. This is accomplished by having an attorney file the appropriate documents.
The request is reviewed and a decision rendered. If the court finds in favor of the creditor, which is usually the case, the writ of execution is drawn up and finalized by the court. The next step is to send documentation to the local sheriff.
It is the sheriff’s responsibility to carry out a writ of execution. So let’s say a debtor’s vacation property is to be seized. The local sheriff executes the writ by seizing the property, securing it, and scheduling it for sale.
Sale proceeds go toward paying off the judgment. Any leftover funds are returned to the debtor. If the sale does not yield enough money to pay the judgment in full, the debtor is still responsible for paying the balance.
Exempt and Nonexempt Assets
There are some things to consider with the writ of execution, the first of which is the difference between exempt and nonexempt assets. Exempt assets cannot be seized and sold to satisfy judgments. The most common example of an exempt asset is a debtor’s primary residence.
Also known as a homestead, a debtor’s primary residence is protected either partially or in full in most states. Full protection would mean that a debtor’s house is off limits for debt collection. Partial protection would mean that only a certain value of the home is exempt from collection efforts.
Nonexempt assets are fair game for writs of execution. Examples of nonexempt assets include vacation properties, investment properties, luxury vehicles, boats and RVs, jewelry, and other personal property with significant value.
When Other Creditors Are Involved
A second thing to consider is that other creditors might be involved. A good example is an investment property. Imagine a judgment debtor with numerous investment properties, all of which are currently mortgaged. The banks on each of those properties have already filed liens against them. That puts them in the first lien position.
A judgment creditor seeking writs of execution against the properties would be in the second position. That means the banks would have to be paid first. If there is money left over, the creditor would be paid second.
Other Ways to Collect
The experts at Judgment Collectors in Salt Lake City, UT, say that obtaining a writ of execution is a strategy to pursue after other means have been tried and failed. They explain there are other ways to collect. Those other ways include installment plans, wage and bank account garnishment, and standard property liens.
When all else fails, the writ of execution represents one way to turn a debtor’s hard assets into cash. Fortunately, the threat of losing a piece of valuable property is often sufficient motivation for debtors to find another way to pay.