1. Civil Litigation:
Process and Procedures
Chapter Twenty
Enforcement of Judgments

2. Enforcement of Judgments
 The legal team’s litigation responsibilities
do not end until the judgment is collected
& distributed
 Plaintiff & Defendant become judgment
creditor (to whom the money is owed)
and judgment debtor (who owes the
money)
 Because of counterclaims, etc., either
party can be owed damages
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3. Enforcement
 Federal and many state rules require
waiting 10 days after the entry of
judgment before beginning
enforcement
 The judgment may be further stayed,
however, for posttrial motions &
appeals, around 30 days after the
judgment entry
Civil Litigation: Process and Procedures © 2009 Pearson Education, Upper Saddle River, NJ 07458.
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4. Collection Methods
 Non-adversarial
 Collection letter with verification
information is sent to the judgment debtor
 May contain a satisfaction piece, to be filed
once the debt is paid
 May result in the debtor (e.g., an insurance
company or corporation) processing the
demand and issuing a check
Civil Litigation: Process and Procedures © 2009 Pearson Education, Upper Saddle River, NJ 07458.
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5. Authorization for Distribution
 The paralegal may prepare a statement
for the client, an Authorization for
Distribution
 Based upon the initial fee agreement
 Anticipated amount to be collected
 Deductions for expenses of litigation &
attorneys’ fees
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6. Typical Schedule of Distribution
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7. Adversarial Proceedings
 If the judgment debtor fails to respond
to the collection letter, the judgment
creditor may
 Use the state court system to enforce a
state court judgment
 Use the state court system to enforce a
federal court judgment, since the state has
jurisdiction over the assets needed to
satisfy the judgment
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8. Full Faith and Credit
 The state court will recognize the validity
of a federal decision (within its
geographical boundaries)
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9. The Collection Process
 The state system will apply its own laws to
the collection process
 Execution
 Levy
 Garnishment
 Replevin
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10. Replevin
 A court process that permits the
judgment holder to actually take back a
specific item
 Sometimes referred to as a court-
ordered repossession
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11. Garnishment
 Usually against wages
 Permits judgment creditor to serve a
debtor’s employer and the employer
must usually deliver a portion of the
debtor’s wages
 States have many forms of garnishment
rules and some states do not permit it
at all
Civil Litigation: Process and Procedures © 2009 Pearson Education, Upper Saddle River, NJ 07458.
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12. Levy
 Process of identifying property which
may be the subject of an execution sale
 Levying is method of identifying the
debtor’s claim against certain of the
debtor’s property
 Preliminary step leading to a sale of
such property
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13. Execution
 Sale, usually at auction, of debtor’s
goods to satisfy judgment
 States have specific rules about how
this process is conducted
 Process is carried out by judicial officer,
often a sheriff or constable
Civil Litigation: Process and Procedures © 2009 Pearson Education, Upper Saddle River, NJ 07458.
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14. Uniform Enforcement
of Foreign Judgments Act
 Simple, uniform process of lodging
foreign judgments for collection by a
state court
 A foreign judgment is
 Any judgment, decree or order
 From any court of the U.S. or other court
entitled to full faith & credit (sister state
court)
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15. UEFJA
 Requires
 An authenticated or certified copy of the
judgment
 Usually docket entries
 An affidavit stating the name & last known
address of the judgment debtor
 A filing fee
 The foreign judgment becomes a
judgment of that court
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16. Registering a Foreign Judgment
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17. Execution on the Judgment
 The registered judgment can be collected
by execution
 In order to satisfy the judgment, a law
enforcement officer can proceed against
property of the judgment debtor by
 Taking possession of it (seizing it)
 Attachment
 Sequestering
 Levying against it
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18. Exempt Property
 Generally, execution can proceed
against real or personal property
 Some property is exempt, in order to
afford the judgment debtor the means
of continuing a trade, or for necessaries
 Tools of the trade
 A percentage of income exempt from
garnishment
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19. Satisfying the Judgment
 The debtor can pay the debt or the
property may be sold
 Costs of the sale are deducted from the
gross proceeds – schedule of distribution
 The remainder is given to the creditor
 Sale nets more than the judgment – debtor is
refunded the overage
 Sale nets less than the judgment – creditor can
proceed against additional property (deficiency)
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20. Locating Assets
 Interrogatories in aid of execution
 Questions concerning location of the debtor’s
assets
 Addressed to banks, brokerage houses, other
financial institutions
 Paralegals can research
 Public records for land transactions
 Internet for stories of windfalls
 Internet for employment information
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21. Judgment Proof Debtors
 Usually researched as part of intake,
the defendant’s assets are a factor in
evaluating a case (cost/benefit analysis)
 A debtor may ultimately prove to be
“judgment proof”, perhaps because of a
change in circumstances, and
immediate collection is impossible due
to lack of assets
Civil Litigation: Process and Procedures © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
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22. Post-Judgment Interest
 Varies by jurisdiction, e.g.,
 Not available
 Tied to the market rate of interest
 Set statutory amount
 Justifies “waiting out” a judgment proof
debtor
 Must renew or revive the judgment
according to the rules of the jurisdiction
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23. Fair Debt
Collection Practices Act
 Protects the the debtor in collection of
consumer debt
 Personal, family, household purposes
 Not a business debt
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24. Interpretation of FDCPA and
Law Firms
Sayyed v. Wolpoff & Abramson, 485 F.3d
226 (4thCir. 2007)
“[T]he FDCPA clearly defines the parties
and activities it regulates. The Act
applies to law firms that constitute debt
collectors, even where their debt-
collecting activity is litigation.”
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25. Bankruptcy
 Ability to collect from a debtor filing
bankruptcy depends on the circumstances
 Type of bankruptcy
 Chapt. 7, liquidation – the debt may be settled
under liquidation, according to the ratio of
assets/debt
 Chapt. 11, business reorganization
 Chapt. 13, individual reorganization – the debt
may remain valid under reorganization, although it
might take longer to collect
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26. Other Bankruptcy Outcomes
 The petition could be dismissed
 Can request a relief from the automatic
stay
 Once a petition is filed, no debts can be paid
except through the court
 Some debts are non-dischargeable (exempt)
 If a stay is granted, collection efforts could
continue despite the bankruptcy
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27. Satisfaction
 Once the debt is settled, it is important
to file a notice of debt satisfaction
 On the docket of the court of original
jurisdiction
 On the docket of each state court where
judgment was lodged
Civil Litigation: Process and Procedures © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
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28. Satisfaction of Judgment Form
Civil Litigation: Process and Procedures © 2009 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
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