Most people assume that once they win a debt collection lawsuit, the process is finally over and the money they are owed will shortly follow. Unfortunately, this is not always the case. While obtaining a judgment in your favor is certainly a major step forward, many creditors quickly learn that actually recovering the debt can sometimes become a process in and of itself.
This is especially true when debtors refuse to cooperate, ignore court orders, attempt to hide assets, or otherwise make collection efforts more complicated than they need to be. That is why it is important to understand exactly what happens after a successful debt collection lawsuit and what legal options may become available to help enforce your judgment going forward. Read on and reach out to a Rochester collections lawyer from Lacy Katzen LLP to learn more. Here are some of the questions you may have:
What Does a Judgment Mean in a New York Debt Collection Case?
When a court enters judgment in your favor, it means the court has formally recognized that the debtor legally owes you money. However, contrary to what many people believe, winning the lawsuit itself does not automatically force payment. Instead, the judgment gives creditors additional legal tools that may be used to pursue collection efforts after the case is over. Generally speaking, a judgment may include the following:
- The unpaid debt balance
- Interest on the amount owed
- Certain court costs and filing fees
- Attorney’s fees in some cases
Once judgment is entered, some debtors voluntarily satisfy the debt. Others, however, simply do not. In these situations, creditors are frequently forced to take additional legal action to enforce the judgment and recover the money they are rightfully owed.
How Can a Creditor Collect After Winning the Lawsuit?
There are several ways creditors may attempt to collect on a judgment, but some of the most common post-judgment collection methods are as follows:
- Wage garnishment
- Bank account restraints
- Information subpoenas
- Asset searches and investigations
How Long Does a New York Judgment Last?
One important thing creditors should understand is that judgments in New York can remain enforceable for a significant period of time. This can become especially important in situations where a debtor currently lacks substantial assets but may later acquire income, property, or other financial resources. Generally speaking:
- Money judgments in New York are enforceable for 20 years
- Judgment liens against real property last 10 years and may be renewed for an additional 10 years
- Statutory interest continues accruing on the unpaid balance
Because of this, creditors do not necessarily lose the ability to recover payment simply because collection efforts were initially unsuccessful. Financial circumstances can change considerably over time. A debtor may later obtain a better job, inherit money, sell property, or otherwise become financially capable of satisfying the judgment.
Additionally, in some cases, debtors eventually decide to negotiate payment arrangements or settlement agreements after judgment has already been entered against them. Depending on the circumstances, this may allow both parties to resolve the matter without further enforcement proceedings.
If you have a judgment over $10,000, contact Lacy Katzen LLP today online to speak with a knowledgeable collections attorney about your case, email us at [email protected], or call 585-888-9662.
