The decisions rendered in civil courts are known as judgments. When a judgment involves a monetary award, it is often referred to as a money judgment. So here’s the big question: how long does it take to enforce a money judgment?
Enforcing a money judgment boils down to collecting payment. The thing most people do not understand prior to going to court is that enforcement is left to the two parties. Unlike criminal court, where a judge sentences a convict after the fact, civil courts don’t get directly involved in enforcement efforts.
That means it is up to judgment creditors and debtors to figure out how payment will be made. Uncooperative debtors force creditors to employ enforcement strategies – which takes us back to the original question of how long enforcement takes.
Cooperation Is the Starting Point
There is no black-and-white answer to the question. The starting point for figuring it out, at least according to Salt Lake City Utah’s Judgment Collectors, is debtor cooperation. The level of cooperation provided by a debtor is the single biggest factor determining how long it takes to get paid.
A cooperative debtor may be quick to offer:
- Full payment by cash or check.
- A partial payment deal.
- A proposed payment plan.
Any of these options might be acceptable to a creditor. Even a partial payment deal could be viewed as better than risking not getting paid at all. The point is that quick resolution is possible with a cooperative debtor.
The other side of the coin is an uncooperative debtor who makes no attempt to work out payment arrangements. When debtors fail to fully cooperate, cases have the potential to linger for years on end.
There Are Rules to the Game
Beginning enforcement actions against an uncooperative debtor triggers an extension of the legal system. Simply put, there are rules to the enforcement game. For example, many states require that judgment creditors wait a minimum amount of time before beginning to collect. This is time given to debtors to appeal.
Another example of the rules pertains to garnishing wages. States that allow wage garnishment (not all do) generally limit the amount of money that can be garnished. Amounts are usually a percentage of the debtor’s disposable income. It is not like creditors can take every dollar from every paycheck until the debt has been paid.
When Assets Are in Play
Assets are like gold in judgment collection. Assets can be used as leverage to convince debtors to pay up. Just as an example, Judgment Collectors once worked on a case involving a debtor who attempted to hide his assets. The agency did a standard property search that ultimately turned up an airplane hangar in another county.
Once the debtor realized Judgment Collectors knew about the hangar, he also realized that a writ of seizure could be obtained against it. That was all the motivation he needed to work out a payment deal.
I mention this to say that asset discovery takes time. A good collection agency or private investigator can find just about any asset, but finding assets overnight is the rare exception to the rule. Investigators need weeks or months – sometimes even years – to discover an asset that will tip enforcement in the creditor’s favor.
Even with the help of a private investigator or judgment collection agency, it can take years to collect. This is why it’s so important for judgment creditors to begin enforcement efforts with a long-term strategy in mind. Creditors should be prepared to play the long game no matter how long it takes.