17 Feb Step One in Enforcing Your Judgment: Perfect the Judgment – Podcast

Great news – your attorney has informed you that you won your case, and judgment was made in your favor.  Now what?  Court judgments are not self-enforcing.  This means obtaining your judgment is only the beginning of your quest to collect money from your opponent.  Unless your opponent voluntarily pays the judgment, you will need to perfect the judgment and then enforce the judgment.  Enforcing the judgment will take more time and unfortunately more money, but if the judgment is substantial, enforcing the judgment will be a worthwhile exercise.

Entry of Judgment

The proceedings and practice relating to entering and recording judgments is governed by Colorado statute.  Rule 58 governs “Entry of Judgment.”  It states that upon jury verdict or a decision by the court, the court shall promptly prepare, date, and sign a written judgment and the clerk shall enter it on the register of actions as provided in C.R.C.P. 79(a).

Typically, the court will sign the judgment in the absence of the parties, so Rule 58 requires the court to immediately mail or e-serve a copy of the signed judgment to each party who has previously appeared.  This means that, after you “win” part or all of your case and you obtain a judgment, you and your attorney will want to make sure that the judge signed the judgment or order, and that the clerk enters the order or judgment on the register of actions.  This is the only way to ensure you can perfect the judgment.  Your attorney should be able to see whether the judgment has been entered by checking Colorado’s e-filing system called “ICCES”, where the court will provide a separate link to the judgment docket.

In some cases your opponent may question the validity of a judgment.  The appearance of a judgment upon the records of a court raises a strong presumption that it is the judgment of the court.  While some cases hold that, as between the parties, the judgment exists from the time the jury renders its verdict or the court acts, notwithstanding that it was not properly entered, other cases hold that any order or judgment must be entered of record to be effective.  Thus, although a judgment may be signed and delivered to the office of the clerk, it is not effective until it has been entered on the docket.

A good way to ensure you can properly perfect the judgment is to have your attorney file a proposed order entering judgment pursuant to C.R.C.P. 58(a).  The proposed judgment should specifically detail the claims/counterclaims/cross-claims or third-party claims that the court ruled on; how the court ruled on them; and the parties affected by the judgment.  If the judgment or order of the court adjudicated all of the claims against all parties in the case, the proposed judgment should state this.  Also, if the court awarded attorneys’ fees, this determination should be addressed in the proposed Rule 58 order.

Once the court enters your Rule 58 proposed judgment, your attorney should request several transcripts of judgment, certified by the clerk of court.  You will need these transcripts for recording purposes.  The number of transcripts you need will depend on where your judgment debtor has assets or could have assets in the future.  For example, if he/she/it has real property in more than one county in Colorado, your attorney will have to file a transcript of judgment in each of those counties to perfect the judgment lien against the property.

Time to Record and Perfect

The date that the order or judgment is issued often determines the time period which the judgment debtor has if he wishes to file any appeal.  This same date will also determine your time frame to perfect the judgment against the judgment debtor’s assets.  If you were awarded a money judgment in Colorado County Court, the money judgment will expire 6 years from the date of the judgment.  If you were awarded a money judgment in Colorado District Court, it will expire 20 years from the date of the judgment.

The “effective date” of entry of the judgment will be the actual date the judge signs the written judgment.  In case there is any question as to the effective date, have your attorney check the notation of the judgment in the court’s register of actions, which according to Rule 58 must show the effective date of the judgment.

According to C.R.S. § 13-52-102, to attach and thus perfect the judgment lien against the judgment debtor’s property, you and your attorney must have the clerk-certified transcript of the judgment recorded in any county where the judgment debtor has assets or may have assets.  This has the effect of making the judgment a lien of record against any real property owned by the judgment debtor.  It can now be considered “perfected.”

The timing of recording the transcript of judgment will determine when the judgment becomes a non-exempt “lien” upon all the real estate owned by the debtor in that county, or assets “which such judgment debtor may afterwards acquire in such county, until such lien expires.”

Time to Enforce

A judgment lien in Colorado will remain attached to the debtor’s property (even if the property changes hands) for six years after the entry of judgment unless, prior to the expiration of the six-year period, you and your attorney “revive” the judgment as provided by law, and a clerk-certified transcript of the judgment record of the “revived” judgment is recorded in the same county where the original transcript of judgment was recorded.  Reviving a judgment will give you another six years from the entry of the revived judgment to enforce the judgment against the judgment debtor’s property.  The law does not limit the amount of times you can revive a judgment, and you will need to continue to do this to perfect the judgment.

However keep in mind that your ability to collect under a judgment lien will be affected by a number of factors, such as the judgment debtor’s homestead exemption, other liens that may have been perfected on the property before yours, and any foreclosure or bankruptcy proceedings filed by or involuntarily against the judgment debtor.

Perfecting and enforcing a judgment could get complicated.  Don’t do it on your own.  Call Edwards Law today for a free consultation.