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A writ of execution allows a creditor to collect a monetary judgment against a debtor, often through seizure of property or bank accounts. Foreclosure of bank accounts or wages are common methods, but there are legal limits to the amount that can be withheld. Debtors may be able to negotiate a repayment plan, but if serious financial circumstances arise, bankruptcy or other legal options may be necessary.
A writ of execution occurs when a court grants a plaintiff legal permission to collect a monetary judgment against a debtor. It is often preceded by a small claims court judgment. The court must, of course, rule in favor of the creditor for the judgment to be enforced. The writ, once issued, sets off a series of events leading to the objective of collecting money or property owed to a creditor. These collection methods are sanctioned by the court and can include seizure of property and bank accounts.
An execution warrant can, for example, allow you to repossess a car. In this case, it allows you to seize and sell the property to pay off the debt. Other examples include collections for non-payment of credit card bills, hospital bills, or an automobile accident judgment. Often, enforcement orders are directed to bank accounts and the creditor’s money is simply frozen and then used to pay off the debt. Wages can also be garnished to raise the money.
Foreclosure of bank accounts or wages are among the most popular ways to collect the judgment. There are typically legal limits to the amount of money that can be withheld from a paycheck. Employers typically receive written notice of the foreclosure and then have a certain amount of time to begin withholding the money. Foreclosing a bank account does not necessarily mean that the amount will be collected in full, especially if the debtor holds a joint account with another person. If so, your account may be exempt.
Other collection proceedings may require the debtor to go back to court to fully disclose assets and other information. Usually, a lender will ask for this information if it’s not already known. Information requested may include a list of all owned properties, place of work, other sources of income, driver’s license information, and a government-issued identification number. If a debtor fails to comply with this or any other court-ordered writ or appearance, a writ may be issued against the debtor for failure to appear in court or failure to enforce.
Individuals who receive a writ of execution may be able to process payments with the creditor, depending on the circumstances. Any repayment plan will likely be monitored and enforced by the court that issued the ruling. Once a writ of execution has been issued, the debtor has little recourse. In case of serious financial circumstances, the debtor may consider bankruptcy or other legal options to stop it. These options should be discussed thoroughly with a qualified attorney.
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