Adkisson's

Collecting On A Judgment

 

An Overview of Creditor-Debtor Law and Judgment Enforcement Techniques

 

CAUTION STATE LAW VARIANCES ! ! !

Judgment enforcement law is about as non-uniform between the various states as any body of law.

 

Collecting Default Judgments

Default judgments are those taken where a defendant failed to timely respond to a Complaint or Petition, and so the Court then entered a judgment against the defendant anyway, often after a "Prove-Up Hearing" where the Plaintiff puts on evidence of damages.

 

Default judgments are worth no more than ordinary judgments, and often much less. The reason is that default judgments are notoriously easy for defendants to set aside, usually because the defendant will claim that he was never served with a copy of the Complaint in the first place. In the first year, many judges will set aside default judgments for just about any old reason, thinking that it is "no harm, no foul", and the case can proceed normally. After the first year, default judgments can be set aside for some period of years (three seems to be common) if the defendant can show that service was defective based upon the court records prior to the default being entered (a/k/a the "Judgment Roll").

 

This places the creditor in a quandry: Does the creditor wait a year until enforcing a default judgment, but risk the debtor dissipating assets? Or does the creditor begin collections, and risk that the defendant will get the default set aside?

 

The better practice for creditors is usually to begin collections and draw the debtor out early to either get the default set aside or not. But this depends on a lot of factors, such as the quality of the service of process, how close the case is to being one year from the judgment, and what the cost would be to litigate the case ab initio.

 

C O M M O N      P A G E      F O O T E R

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OTHER INFORMATIONAL WEBSITES BY JAY ADKISSON

 

  • About Jay Adkisson - More about Jay D. Adkisson, background, books, articles, speaking appearances - https://jayadkisson.com/

 

  • Captive Insurance Companies - Licensed insurance companies formed by the parent organization to handle the insurance and risk management needs of the business - https://captiveinsurancecompanies.com/

 

 

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  • Private Retirement Plans - An exploration of a unique creditor exemption allowed under California law which can be very beneficial but is often misused - https://privateretirementplans.com/

 

  • Charging Orders - The confusing remedy against a debtor's interest in an LLC or partnership is explained in reference to the Uniform Partnership Act, the Uniform Limited Partnership Act, and the Uniform Limited Liability Company Act - https://chargingorder.com/

 

  • Protected Series LLCs - An examination of the single most complex statutory legal structure yet created, with particular reference to the Uniform Protected Series Act of 2017 - https://protectedseriesact.com/

 

  • California Enforcement of Judgments Law - Considers the topic of judgment enforcement in California, including the California Enforcement of Judgments Law and other laws related to California creditor-debtor issues - https://calejl.com/

 

  • Anti-SLAPP Laws - A collection of and commentary about Anti-SLAPP laws and significant court decisions on the subject within the United States - https://antislapplaws.com/

 

© 2018 by Jay D. Adkisson. All Rights Reserved. No claim to original government works. The information contained in this website is for general educational purposes only, does not constitute any legal advice or opinion, and should not be relied upon in relation to particular cases. Use this information at your own peril; it is no substitute for the legal advice or opinion of an attorney licensed to practice law in the appropriate jurisdiction.  This site https://collectingonajudgment.com  Contact Jay Adkisson by phone to 702-953-9617, by fax to 877-698-0678, or by e-mail to jay [at] jayad.com