Winning a money judgment gives the winning party, also known as the judgment creditor, certain writes. For instance, the judgment creditor has the legal right to collect the money owed to him. He has the right to use every legal means at his disposal to do so. But judgment creditors also have responsibilities.
The exact details of those responsibilities may vary from one jurisdiction to another. In addition, there may be some responsibilities in one jurisdiction that do not apply in another. Civil lawsuits are largely regulated by state law, and state laws vary. Indeed, that plays into one of the judgment creditor’s most important responsibilities: to know exactly what the law says about how collection efforts can be implemented.
Here are three judgment creditor responsibilities that can be applied to nearly every case:
1. The Responsibility to Enforce
Collecting a money judgment is known as enforcement in legal circles. Enforcement is the responsibility of the creditor. As Utah-based Judgment Collectors explains, courts do not get directly involved in collection efforts. Their only responsibility is to hear and rule on future motions made by the two parties. Actual collection efforts are left to creditors.
Having the responsibility to enforce does not necessarily mean a creditor will do so directly. A creditor can leave enforcement to its attorney. A second option is to turn the collection over to an agency like Judgment Collectors.
2. The Responsibility to Pay for Collection Costs
Next, judgment creditors are responsible for paying all the costs associated with their collection efforts. Should a creditor decide to go back to court for a writ of execution against the debtor’s property for example, he must pay the appropriate court costs and legal fees. A creditor must also pay his attorney, or the fee associated with working with a collection agency.
Note that some states allow judgment creditors to add their costs to the total amount that the debtor owes. In essence, the debtor ends up covering the collection costs if he or she actually pays the money judgment in full.
Also note that some states allow judgment creditors to charge interest. Interest can accrue over time, just as it does on a typical consumer loan. In cases where a creditor is not allowed to pass on collection costs, the interest rate might be set high enough to cover them.
3. The Responsibility to Play by the Rules
Finally, judgment creditors have a responsibility to play by the rules. Although money judgments are quite different from general debts, some of the very same debt collection rules apply. Judgment creditors are not allowed to go above and beyond what federal and state laws say about collection.
This particular responsibility might explain why some judgment creditors leave collection to their attorneys. It is just understood that attorneys know the rules and how to play by them. Judgment collection agencies do as well, so there should be no worries there.
Failure to play by the rules could hinder collection efforts in the future. Outright breaking the law could even prevent a judgment creditor from ever getting paid. If for no other reason, it’s a good idea for judgment creditors to not attempt collection without the assistance of an attorney or collection agency.
Considering the responsibilities described in this post, collecting a money judgment can be more difficult than winning it. The obvious lesson here is that winning a judgment does not necessarily guarantee full and swift payment. There is an entire collection process that follows the conclusion of the court case. Sometimes it ends well. Other times it does not.
