Debtor Exam Liens
Posted: Wednesday, February 02, 2011
by Mark Shapiro
JudgmentBuy.com
I am a Judgment Broker, not a lawyer, and this article is my opinion, please consult with a lawyer if you require legal advice.
Often, to help in the battle to enforce a judgment, one must have the court command the debtor to appear in court, by getting a subpoena. Either an attorney or the court can issue a subpoena. The court will give you a schedule for a debtor examination (a hearing) at the court where the judgment was obtained.
Judgment Debtor exams are not as easy or as cheap as they should be. Very often, the court will charge for a scheduled hearing, then you must (usually) pay to have the debtor served.
Having a friend serve subpoenas might be legal, but you are much better off hiring a sheriff or a registered process server. The reason is, should the served party lie and claim they were not served, the court will more likely believe a sheriff or a registered process server.
Serving the debtor themselves, while required, is not as valuable as also serving third parties to the debtor for several reasons:
1) The debtor may not show up in court, and the judge might issue a warrant for the debtor's arrest that you must pay for. Many debtors know that in most places, the Sheriffs make this a very low priority, and in some places, debtors are never picked up, even at traffic violation stops, for civil bench warrants.
2) Debtors can and do lie whenever they want, and they often fail to bring requested documents on the first request. Many debtors know the worst that can happen is they might have to appear in court again. There is a saying, "never ask a debtor a question, unless you already know the answer".
3) There are financial penalties for disobeying court orders, such as being properly served, and not showing up or doing what the court ordered. Judgment Debtors already owe money and are not paying, so what is a little more owed?
The subpoenaed third party must (based upon your information and belief) owe the debtor money, or control or has knowledge of the debtors assets.
Third parties do not like to go to court, or to pay penalties for not doing what the court ordered. If the third party is the debtor's spouse, kids, or parents, a certain pressure can be put on the debtor. Third parties are usually far more sensitive to court-related threats of arrest and penalties than judgment debtors are.
Third parties can be served - but only if the debtor is also served. You must pay to have each party served, after the debtor's examination is scheduled. Third parties could be the debtor's spouse, child, parent, landlord, neighbor, friend, employer, co-worker, bank, utility company, etc.
Every state and every court is different, so it's a good idea to find an example of the forms and procedures you need at the court house, a practice guide at a law library, a judgment recovery training book or forum, or the Internet.
You can get the required forms from your court or court's web site. The court clerk will tell you which days and times are available. Write or type the date and time the court provides you on the forms. Make sure that the scheduled hearing is far enough in the future that you can get your debtor served.
Make sure you get all parties served, and make sure the proof of service forms are returned to the court. Find out how many copies are needed of each form, and make at least 2 extra copies, one for you and one to show the other party in court, if they fail to bring what they were served.
On the time of the hearing, show up early and check in with the court clerk, telling them your name and capacity (the judgment creditor, the assignee of record, etc.) After you and the debtor or third party are called to appear in front of the judge, you will be sworn in, and then you will be told where to go to conduct the exam. Often the place you go is a hallway, sometimes without chairs or tables.
If you have served more than one party, it is best to examine each party separately. The fact that some parties will have to wait only helps your effort to persuade the debtor to pay. If the debtor or third party refuses to answer a question or fails to bring a document you requested, ask the judge to continue the hearing to another date, to give the party another chance to bring the requested documents.
Mark D. Shapiro - Judgment Broker, www.JudgmentBuy.com - where Judgments go to get enforced. JudgmentBuy has the best judgment recovery system, best judgment FAQ and best judgment leads. If you need money for your judgment, visit JudgmentBuy.com
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