Once the monetary damages are imposed in a case, the plaintiff receives a “judgment.” The following step, known as enforcing the judgment, is actually collecting the money, which isn’t always smooth and uncomplicated. Judgment enforcement in New York City has it’s own complications.
The plaintiff who “got a million dollars in judgment” is well-known. Courts, on the other hand, seldom award money; instead, they issue a monetary damages judgment. It’s an important distinction: a piece of paper bearing the words “judgment” is not the same as dollars. Not yet, at least.
Experienced counsel may be required to uncover where the defendant’s concealed assets are in order to obtain the sum owing. Then, with the help of skilled lawyers, the judgment can be enforced by seizing bank accounts and other assets.
Recovering Financial Losses
Suits are frequently used to recover funds and make a plaintiff whole. Perhaps a company lost millions of dollars as a result of a blunder. Alternatively, an entrepreneur may have a disagreement with her company partners.
Or someone is hurt in a severe automobile accident or a terror attack.
In these types of situations, the courts can intervene by granting monetary damages. In a variety of instances, courts issue monetary judgments, including:
- Default decision based on a jury verdict
- Restitution sanctions based on a favorable summary judgment
But what happens after that? What is the worth of a piece of paper with the words “judgment” written on it? Only the lawyers well-versed with Judgment Enforcement In New York City can assist you in converting that paper into real money and assets.
The state of New York has a comprehensive set of asset investigation and enforcement statutes. Subpoenas can be served, depositions can be taken, wages can be garnished, bank accounts can be frozen, so on and so forth. We can also dispatch a sheriff to seize property.
In addition, New York state law is used to collect judgments obtained in federal proceedings. “The procedure on implementation, and in proceedings supplementary to and in support of judgment or execution—must comply with the protocol of the state where the court is based,” according to FRCP 69(a)(1).
CPLR § 5201(b)
“A money Judgment Enforcement In New York City might be imposable against any property that could be assigned or transferred,” according to CPLR 5201(b). To put it another way, we have the right to seize not only money but also property, stock, art, and nearly anything else that could be sold to meet the judgment.
In New York, a defendant has some private possessions that are not subject to judgment. His stove, holy book, church pew, wedding ring, and wardrobe may all be safeguarded-
And a car, if it’s worth up to USD 4,550. These exemptions are reasonable and equitable, yet they offer little defense to most debtors.
Authorities can normally seek to confiscate a debtor’s home to pay for a judgment under CPLR 5206 – homestead exemption. And it’s a safe bet that the debtor will pay up before his house is auctioned off.
Many individuals have heard how, unlike in New York, a debtor’s primary residence in Florida is completely protected. Even after being convicted liable for wrongful death for more than USD 70 million, OJ Simpson continued to reside in a mansion in Florida. “Florida lays out the red carpet for folks fleeing massive debts,” read the headlines. It’s a deadbeat’s dream come true.”
However, homestead immunity in New York is relatively limited. In New York City and the counties in the vicinity, the homestead exemption is capped to residences with USD 170,825 in equity, USD 142,350 in Albany, and $USD 84,400 in the rest of the state.
And, as one might expect, finding a home worth more than $USD 150,000 in New York City is not difficult.
5222 CPLR – restraining order
New York has a fairly strong “restraining notice” provision that can be used to freeze the debtor’s or third parties’ assets.
The debtor is “forbidden to make or endure any sale, assignment, transfer, or intervention with any property in which he/she has any interest” once served with a restraining order. But how does it matter? Won’t the debtor simply disregard the restraining order?
Servicing third parties is where the restraining order’s ultimate strength lies. Bank accounts, brokerage accounts, receivable accounts, and rentals can all be restricted.
All of the debtor’s assets should be diverted to you, the judgment creditor, and then used to compensate.
CPLR 5223; CPLR 5224 – discovery
To explore and track assets, we can use a wide range of discovery techniques. Solicitors well versed with Judgment Enforcement In New York City can issue subpoenas for books and records, as well as sworn answers to interrogatories and witness statements.
Professionals are not compelled to notify the judgment debtor that they are taking such discovery, unlike “regular” discovery. See, for example, Salvan v. Lewis, 50 Misc 3d 1211(A) (Civ. Ct., N.Y. Cty. 2015) (“Unlike pre-trial disclosure or disclosure in a pending civil judicial proceeding, which specifically requires the service of a third-party subpoena on all stakeholders, disclosure in a supplementary hearing under CPLR 5223 or 5224 has no such requisite.”).
Restitution to Victims
A judge might require the offender to pay compensation to the victims under New York criminal law. 60.27 of the Penal Code. The restitution order can then be enforced by the victim in the same way that any other judgment against a debtor can.
A judge can also award reparations to the plaintiffs under federal criminal law. See 18 U.S.C. 3663 and 3663A for more information. After that, a victim might ask for the restitution order to be turned into a monetary judgment. 18 U.S.C. 3664(m)(1); 18 U.S.C. 3664(m)(2); 18 U.S.C. 3664(m (B). The judgment becomes a lien and can be enforced like any other judgment against a debtor once it is filed with the New York state clerk.
The ruling must be “domesticated” if it is issued in another state or overseas, but the assets are in New York.
In most cases, a decision from another state can be domesticated in New York with a quick and painless process. 5402 of the CPLR. Foreign judgments are a type of out-of-state judgment that can be quickly executed (unless an appeal is pending in that state).
We must, however, use New York’s expedited summary judgment procedure in circumstances of default judgments and admissions of judgment.
Get In Touch With Us
To schedule a free and private consultation, contact our competent and knowledgable asset recovery attorneys now by visiting www.bblawpllc.com or email