While litigating and receiving a judgment is the first step to rectifying wrongs that have occurred to you or your business, it is not always the end of the road. If you are successful in litigation, the court may award you financial damages, and the issue then becomes making sure you are paid.
To ensure that you are awarded more than a mere judgment on paper, you may need to levy property and utilize Florida’s lien laws to receive payment from the proceeds of the sale of the debtor’s property. Here are the six key steps to executing a levy against property and ultimately receiving payment:
- Obtain a judgment lien. This can be done by contacting the Department of State for a judgment lien certificate.
- Locate property to be levied. The courts are there to ensure that the law is applied, but they will not do the groundwork for you. You and your legal team will have to engage in the discovery process and find seizable property. This could include items like boats, vehicles, livestock, jewelry and furniture. It does not include the debtor’s home.
- Obtain a writ of execution. Once you have identified property to be seized, you will then apply for a writ of execution from the Clerk of the court that issued your initial judgment.
- Check for existing liens. Next, you will need to search the government database for existing liens. You should also notify all parties who have filed UCC security interests in the name of the debtor.
- Advertise the sale of the property. Next, the time and date of the property sale must be advertised locally. You may even be able to bid on items yourself.
- Collect the proceeds. Upon the conclusion of the auction, proceeds will be paid out. Priority will be given to covering the sheriff’s costs and then all parties who had previously obtained a judgment lien.
As you can see, obtaining a paper judgment is only one part of actually being paid. A judgment in a lawsuit and the awarding of a lien doesn’t end the legal processes on your end – or your expenses. You may still have to spend a significant amount of time, energy and financial resources on tracking down the debtor’s property or income and placing those liens or income garnishments. There is a real risk, at times, that the debtor may also enter into bankruptcy, which can affect your ability to collect. That can leave you with a judgment that’s worth more on paper than in reality.
There are several steps to take to protect your interests, and these should be taken with adequate legal guidance. We help businesses collect on unpaid debts, contact us today for a consultation.
