14 Apr Use a Writ of Garnishment to Collect Your Judgment From a Business – Podcast

In our last several blogs we have detailed the process for enforcing your judgment against an individual that owes you money, by either placing a lien on their real property; garnishing their wages; or garnishing their bank account or rent payments.  But what if you need to collect your judgment from a business that owes you money?  We finish up this series of blogs with a discussion about how to collect your judgment from a business.

Writ of Garnishment–Judgment Debtor Other Than Natural Person

A “Writ of garnishment–judgment debtor other than natural person” is the exclusive procedure through which you as a judgment creditor can collect from personal property of any kind of a business judgment debtor in the possession or control of a garnishee (the person or entity holding the judgment debtor’s assets or owing the judgment debtor money).  “Personal property” includes the credits, debts, choses in action, or money owed to the business judgment debtor, whether they are due at the time you have the writ served, or are to become due in the future.  In either case, the judgment debtor’s assets are required to be held by the garnishee for payment of the judgment debt.

How to Obtain a Writ of Garnishment to Collect Your Judgment From a Business

Request a Writ of Garnishment from the Clerk of Court after Judgment.  As a judgment creditor, you and your business can request a writ of garnishment from a business judgment debtor after entry of a judgment.  If you make a request for writ after judgment and when a writ of execution may issue, the clerk of court must issue the writ of garnishment.  Under this type of writ of garnishment, you as a judgment creditor may garnish personal property of any description owned by, or owed to, the business judgment debtor, and in the possession or control of the business judgment debtor’s garnishee.  Similar to the writ of continuing garnishment for wages and a writ of garnishment on personal property, issuance of a writ of execution is not required to collect your judgment from a business.

Serve the Writ of Garnishment.  Service of the writ of garnishment–judgment debtor other than natural person must be made in accordance with Rule 4.  This means you must have the garnishee of the business judgment debtor personally served with the writ papers if you want to collect your judgment from a business.  The service of the writ or other notice of levy does not need to be made on the business judgment debtor in order to collect your judgment.  Service of the writ of garnishment–other than natural person, gives the court jurisdiction over the garnishee of the business judgment debtor, and personal property of any description, owned by, or owed to, the business judgment debtor, in the possession or control of the garnishee.

The Garnishee Must Answer the Writ and the Clerk/Court Must Enter Judgments/Orders As to the Disposition of the Property.  The next step in the process is having the garnishee fill out or “answer” the writ.  If the answer to a writ of garnishment shows the garnishee is indebted to your business judgment debtor, the clerk must enter judgment in favor of the business judgment debtor and against the garnishee for your use as the judgment creditor, for the amount of the indebtedness shown in the answer.  If you are acting as a pro se judgment creditor, this indebtedness will be paid by the garnishee into the registry of the court.  However, if you are represented by an attorney, the garnishee must pay the funds directly to your attorney.   The judgment against the garnishee cannot be more than the total amount due and owing on the judgment.

If the garnishee states in the answer to the writ that he/she/it possesses or controls personal property of any description, owned by, or owed to the business judgment debtor, the court must order the garnishee to deliver this property to the sheriff, to be sold as upon execution.  Any proceeds received by the sheriff upon such sale will be paid to the registry of the court, to be applied to the judgment debt.  Any surplus of property or proceeds will be delivered to the business judgment debtor.

The Clerk of Court Disburses Funds to You.  After issuance of the necessary judgments or orders, the clerk of the court must disburse any funds in the registry of court to you as the judgment creditor without you needing to make further application or order, and enter such disbursement in the court records.  However, you must refund to the clerk of the court any disbursement in excess of the amount necessary to satisfy your judgment.

Edwards Law is here to help.  If you need to collect your judgment from a business and don’t want to do it alone, call Edwards Law today to discuss your options.