Turning a judgment into money
In New York, judgment collection runs through a set of post-judgment tools. A creditor can serve information subpoenas and restraining notices on banks, which can freeze funds in the debtor's accounts. An income execution, enforced through a sheriff or, in New York City, a city marshal, can reach part of the debtor's wages. Docketing the judgment in a county where the debtor owns real estate creates a lien on that property. A judgment remains enforceable for a long time and can be renewed, so a debtor without assets today may have them later.
Finding what the debtor owns
Collection depends on information. Start with what you already know: bank accounts that received your payments, employers, vehicles, business interests, and real property records. Subpoenas can require the debtor and third parties to answer questions and produce records under oath. Details about a debtor's business, such as its customers, can lead to third parties who owe the debtor money, which may also be reachable. Keep the judgment, any transcript of it, and every payment or communication from the debtor. Certain income and a portion of bank funds are protected from collection by law, so expect some funds to be released if the debtor claims an exemption.
Planning the collection effort
We review the judgment and the debtor's likely assets, then decide which tools to use and in what order. If the debtor transferred property to avoid paying, a separate claim may allow you to reach it. If the debtor files for bankruptcy, collection generally stops and a lien obtained in the period before filing may be at risk, so timing and documentation matter. Judgments entered by default can sometimes be challenged by the debtor, and we check for weaknesses before investing in enforcement. If the debtor lives or keeps assets in another state, the judgment may need to be domesticated there before it can be enforced. The goal is to spend collection effort where it is likely to produce something.
