Collecting A Judgment Using Post-Judgment Discovery

After you obtain a judgment, finding assets to satisfy it can take some digging.  Besides your own investigations, you can use a legal process called post-judgment discovery to obtain financial information about the defendant.  This article will discuss how the process can help you collect.

What Is Post-Judgment Discovery? 

In litigation, the term “discovery” refers to formal demands for information and records so you can prepare for trial.  After you obtain a judgment, post-judgment discovery refers to demands for financial information and records so you can enforce it.  The main tools available are an information subpoena and Order for Discovery. 

An information subpoena is a pro forma questionnaire you send the defendant about its assets, including bank accounts, real estate, physical assets and accounts receivable, and about other judgments and lawsuits against it.  It also asks about the company’s principals and other businesses they may own.  Information subpoenas can be helpful, but they’re limited to the questions on the form. 

For a more complete financial picture, an Order for Discovery requires the defendant or anyone with relevant information to produce records and appear for a deposition.  To obtain the Order, you would file a Petition for Discovery, which asks the Court to order the deposition and the specific records you’re seeking.

Enforcing Post-Judgment Discovery 

If the defendant fails to answer an information subpoena within 21 days, you can send one to banks it may use or to companies that may owe it money.

If the defendant or third party ignores post-judgment discovery, you can file a Motion to Enforce Litigant’s Rights, which asks the Court to order their compliance, and failing that, to order their arrest until they comply.  In many cases, the threat of arrest is enough to produce the information or records you’re seeking, or sometimes to settle the case.

For more information on collecting past-due receivables, or if you’d like to discuss a specific collection issue, call me at 856-667-1669 or contact me here.

This material is for informational purposes only and should not be construed as legal advice.  No person should rely on this information without seeking the advice of an attorney.