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Collecting-Judgments

Collecting Judgments: Things to Know About the Writ of Execution

Winning a money judgment against another party gives a creditor access to legal collection tools that include the writ of execution. Other tools include wage and bank account garnishment and placing judgment liens on debtor property. As for the writ of execution, it is often considered a tool of last resort.

A Basic Definition

A basic definition of the writ of execution is needed before explaining how it all works. A writ of execution is essentially a court order authorizing the local sheriff or constable to seize debtor property, sell it, and forward the proceeds to the judgment creditor for payment on the debt.

Differing State Rules

Each of the states has its own rules regarding writs of execution and asset seizure. As a general rule, however, the states designate both exempt and nonexempt assets. Exempt assets include things like the debtor’s primary residence and a vehicle the debtor needs to get to and from work. Exempt assets cannot be seized and sold.

Nonexempt assets include things like:

  • Jewelry
  • Collectibles
  • Certain kinds of securities
  • Investment property
  • Vacation property
  • Boats, RVs, planes, etc.

There are some states that do not protect a debtor’s primary residence entirely. Instead, they protect a certain value of the property under what is known as a homestead exemption. A home in one of these states could be seized and sold, but an amount equal to the homestead exemption must be given to the debtor before any funds are forwarded to the creditor.

Filing for Writ of Execution

According to Judgment Collectors, a Utah-based collection agency that specializes in judgment collection in 11 states, creditors cannot begin seizing and selling debtor property without a writ of execution. To get such a writ, a creditor has to file paperwork with the court.

While a small number of states might require a new hearing before granting a writ of execution, most states allow court clerks to sign off on a writ after reviewing the application and associated documentation. Therefore, obtaining a writ of execution is more of an administrative procedure than anything else.

Execution of the Writ

Once issued, a writ of execution is forwarded to the local sheriff or constable. Writ execution is a law enforcement task. The local sheriff will send deputies to the debtor’s property and the writ will be served. Property named in the writ is seized and sold.

The states generally require judgment creditors to specifically name targeted assets and provide an accurate description of each one. This ensures that deputies only seize the property they are authorized to seize under the writ.

Seized assets are then scheduled for sale at public auction. However, sale is rarely immediate. If the asset being sold is a piece of real estate, a creditor is looking at 30-90 days before the auction takes place. Other assets, like jewelry and collectibles, might be put into storage until the sheriff’s department holds its next annual or semi-annual auction.

Other Ways to Collect

Writs of execution tend to be quite effective as a means of settling an outstanding money judgment. But seizing and selling debtor property is a major undertaking. Creditors tend to try other means of collection first. That could include working out a payment plan, accepting a lesser amount as a lump sum payment, or garnishing the debtor’s wages.

Once a creditor has tried everything else and failed, a writ of execution can get the job done. By targeting the right assets, a creditor can guarantee payment of the outstanding judgment. I wouldn’t want to be on the losing end of that deal.

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