In the old days, about 12-20 years ago, one could often enforce a judgment against a property owner by just recording a property lien. With home prices down, and so many upside down and no-equity situations; recording liens alone, often does not work.
Besides waiting for a property lien to possibly and eventually work, another option is to have the Sheriff levy some available assets that belong to your judgment debtor. The first potential problem is if your judgment debtor files for bankruptcy protection. If they do, that stops or terminates all judgment recovery actions. Besides the possibility of the debtor filing for bankruptcy, physical property levies have three other drawbacks:
1) Real estate or physical property levies are expensive. Levies/Garnishments always involve a Sheriff or a Marshall. The creditor must pay for everything, from opening a Sheriff levy file, to possible storage of the judgment debtor's property, and then potential auction fees. There are no refunds, and there is a chance that any money the creditor spends, will be money down the drain.
2) There are many laws that provide for liberal debtor exemptions. Many things are off limits, such as tools and vehicles used in a debtor's business. It is good to know the exemption laws for your State before you attempt a levy, because if the levy fails, you still must pay the fees.
3) Anything with a loan or lease on it cannot be levied, without paying off the existing lien holders or lenders. It is smart to check for loans and liens on a debtor's property first; and find out if it makes sense to have a Sheriff begin a levy, because if the levy fails, or fails to net you any money, you still need to pay the fees.
This article is my opinion, and not legal advice. I am a judgment broker, and am not a lawyer. If you ever need any legal advice or a strategy to use, please contact a lawyer. Because property levies and real estate liens do not always make sense or succeed, other recovery tactics are required. You are not allowed to, and it is not smart, to turn your judgment debtor upside down, to see what falls out of their pockets. That leaves bank and job levies, to attempt to recover your judgment.
Although bank and wage levies still require specific forms, permission from the court, and payment to the levying officer; they are cheaper and easier than levying your debtor's physical property. Before you can have the Sheriff levy your judgment debtor's wages or bank account, you must exactly identify where your judgment debtor works or banks.
How can you find out where your debtor banks, without paying a service to find out for you? You could follow them in your car until they go to their bank. You could search in their trash cans. You could sneakily look in their mailbox every day. You could schedule a judgment debtor examination and document requests and keep rescheduling them, until the debtor shows you something that leads to discovering where they bank.
One problem with debtor examinations are right before, or right after the date of the examination, the judgment debtor might move most of their money to a new bank, and tell you about their old bank account that now has $10 left in it. Or, you can avoid tipping off the debtor, and pay some service to find the judgment debtor's bank account.
How can you find out where your debtor works, without paying a service to find out for you? You could follow them in your car until they go to work. You could ask neighbors, or their family members, where your debtor works. You could schedule a judgment debtor examination and document requests and keep rescheduling them, until the judgment debtor shows you something that leads to finding out where they work. Or, you can pay some service to find out where your judgment debtor works.
If your debtor will not pay you voluntarily, you must pay, and jump through some hoops of the courts, Sheriffs, and sometimes registered process servers; for chances to recover your judgment by levying the judgment debtor's available assets.
Collecting an Unpaid Judgment Against a Judgment Debtor Who Uses Several Aliases
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