If someone owes you or your business money, one of your options is to file a civil lawsuit against them. If you are successful, then the court will order them to pay the outstanding amount and possibly damages.
Nonetheless, winning a civil suit is only one part of collecting the judgment. Often, obtaining the money can be tricky because the defendant may refuse to pay or may hide assets and cash flow.
However, Florida has recently made legislative changes that allow collectors to go after certain “intangible” assets. These changes in the law are explained in more detail below.
Attaching judgment liens to intangible personal property
Before July 1, 2023, the law in Florida did not allow judgment liens to be attached to intangible personal property. Liens could only be placed on assets such as property, vehicles and furniture. The law did not allow liens to be attached to intangible personal assets like royalties and the right to receive rent or payments for the sale of goods.
The Judgement Lien Improvement Act has changed this. A lien can now be attached to intangible types of personal property such as payment intangibles, the proceeds of payment accounts and outstanding rental payments.
Certain assets are still exempt
It’s important to note that despite changes in the legislation, certain assets are still exempt from liens. For example, the homestead exemption prevents a debtor’s primary residence from being seized.
Furthermore, spouses are offered certain protections. For example, where a judgement is against only one spouse, the other’s stake in a property may not be subject to creditor claims.
Winning a civil claim is only the first step. It can take time and effort to receive the money you are entitled to. We help businesses pursue outstanding debts, feel free to contact us today for a consultation.
