Collection Order

The court follows a specific priority list when executing a Collection Order, typically starting with the most liquid assets before moving to tangible property. Cash in bank accounts, brokerage funds and accounts receivable are the primary targets because they can be transferred with minimal administrative friction. If these are insufficient, the court then authorizes the seizure of non-exempt personal property, which can include vehicles, luxury goods and business equipment. We provide the forensic oversight needed to ensure that no high value asset is overlooked during this execution phase, maintaining a relentless focus on the debtor's most accessible liquidity.

A Collection Order is often paired with a Writ of Execution, which is a formal document directed to a law enforcement officer to carry out the court commands. Without this specific writ, the creditor cannot legally compel a bank to release funds or a business to hand over inventory. This is the administrative bridge between the judge’s decision and the actual recovery of capital. At SJKP LLP, we manage the technical filing of these writs with absolute rigidity, ensuring that law enforcement has the precise legal authority needed to seize assets without delay or procedural pushback.

Even after a Collection Order is issued, a debtor may attempt to file for a stay of execution to delay the seizure. This is a common defensive tactic used to provide the debtor with time to hide assets or file for bankruptcy. The court will only grant a stay if the debtor provides a significant bond or shows a high probability of success on appeal. We act as a formidable barrier against these stall tactics, demanding that the court require a full cash bond to protect your recovery interests while any legal challenges proceed.

For commercial debtors, the most effective recovery strategy involves serving the Collection Order on the debtor own customers. This third party levy requires anyone who owes money to the debtor to pay the court or the creditor instead. This not only secures the funds but also disrupts the debtor professional reputation and business relationships, often forcing a rapid settlement to protect their commercial standing. We utilize forensic accounting to identify the debtor primary revenue sources, ensuring that the garnishment is served where it will have the maximum financial impact on their operational stability.

While federal and state laws provide certain protections for a portion of a debtor wages, most commercial income and non-wage earnings are fully subject to interception. Social security and certain disability benefits may be exempt, but rental income, dividends and consulting fees are often fair game for the court. The debtor must file an exception to prove their income should be protected, and if they fail to do so within the strict statutory window, the money is permanently transferred. Our firm provides the aggressive advocacy needed to challenge these exemptions and maximize the percentage of income diverted to our clients.

A wage garnishment is not a one time event but a continuous lien on the debtor's future earnings. The employer is legally obligated to withhold a specific percentage from every paycheck until the entire debt is satisfied. If the employer fails to comply with the Collection Order, they can be held personally liable for the debt. We provide the necessary legal pressure on payroll departments to ensure that your payments are prioritized and processed according to the strict mandates of the court.

Sophisticated debtors frequently hide their personal wealth behind corporate entities to avoid a Collection Order. We utilize alter ego litigation to prove that the debtor and the corporation are one and the same, allowing the court to seize personal homes, luxury vehicles and private investments to satisfy a business debt. This forensic penetration of the corporate structure is often the only way to recover capital from a defendant who has intentionally bankrupted their company to avoid a judgment. We look for evidence of commingled funds and lack of corporate formalities to build a case for personal liability.

A judgment debtor examination is a court ordered deposition where the debtor must answer questions about every bank account, real estate interest and business venture they possess. We utilize this interrogation to find the smoking gun regarding hidden assets that were not disclosed in prior financial statements. If the debtor lies during this exam, it provides the regulatory trigger for a criminal referral for perjury. At SJKP LLP, we conduct these examinations with clinical precision, utilizing the threat of incarceration to force the disclosure of the debtor actual financial reality.

To verify the debtor's testimony, we serve subpoenas on banks, credit card companies and investment firms. These records often reveal a different story than the one told by the debtor during an exam. By comparing wire transfer history with the debtor's claimed expenses, we can identify fraudulent transfers and hidden accounts that are subject to the Collection Order. This forensic deep dive is essential for overcoming the defenses of debtors who have spent years perfecting the art of asset concealment.

If a debtor refuses to pay despite a recorded lien, the creditor can petition the court to foreclose on that lien. This triggers a judicial sale of the property where the proceeds are used to pay the Collection Order in full. While this process is more complex than a bank levy, it is the ultimate remedy for high value judgments where the debtor is land rich but cash poor. We manage the technical requirements of judicial foreclosure, ensuring that your lien maintains its priority over subsequent claimants and that the sale is executed with administrative finality.

In many jurisdictions, a judgment carries a high statutory interest rate, which is often between 6% and 10% per year. This means that every day the debtor delays payment under the Collection Order, the total balance grows. This interest is not discretionary; it is a mandatory addition to the debt. By the time a debtor finishes an unsuccessful appeal or a period of stalling, they may owe significantly more than the original judgment. We utilize this compounding liability as a tactical lever to demand immediate payment and penalize debtor obstruction throughout the enforcement process.

If the debtor owns property in another state, we must domesticate the judgment in that jurisdiction to record a valid lien. This process, governed by the Uniform Enforcement of Foreign Judgments Act, allows us to extend the reach of the Collection Order across state lines. A debtor cannot escape their obligations by simply moving their real estate investments to a different part of the country. SJKP LLP manages the cross border litigation required to secure your liens nationwide, ensuring that the debtor's property is at risk regardless of its geographic location.

If the debtor engages in bad faith tactics to hide assets or delay the Collection Order, the court can order them to pay for the creditor additional attorney fees and investigative costs. These sanctions are added to the total judgment, further increasing the debtor liability and diminishing their remaining equity. This fee-shifting mechanism ensures that the cost of enforcement is born by the person who refused to pay. SJKP LLP specializes in documenting these bad faith actions to secure the maximum possible sanctions for our clients.

When a debtor transfers property to a relative or a friend for less than fair market value after a judgment is issued, they are committing a fraudulent transfer. The law allows us to claw back these assets through the Uniform Voidable Transactions Act, nullifying the transfer and returning the property to the debtor estate for seizure. We perform a forensic look-back of the debtor transactions to identify these suspicious moves, ensuring that the debtor cannot hide behind their associates to avoid their legal obligations.

While the United States does not have debtors' prisons for the debt itself, you can be jailed for refusing to answer a judge's questions or for hiding assets in violation of a court order. This is a critical distinction in Collection Order enforcement. The threat of a bench warrant is often the only thing that motivates a debtor to reveal the location of their hidden capital. We do not hesitate to move for contempt when a debtor shows even the slightest sign of non-compliance, maintaining a position of absolute litigious dominance.

The most successful levies are those executed without warning. If the debtor suspects their accounts will be hit, they will move the money within minutes. We coordinate with forensic investigators to identify every branch and institution where the debtor holds funds, serving the Collection Order simultaneously across all platforms. This coordinated strike prevents the debtor from shifting funds between accounts and ensures that we capture the maximum amount of liquidity before they can react.

In many collection cases, other creditors or banks may claim a prior security interest in the debtor's accounts. This creates a secondary litigation event where the court must decide who has priority over the frozen funds. We utilize the Uniform Commercial Code (UCC) to deconstruct these competing claims, proving that our Collection Order takes precedence or that the opposing creditor's interest was not properly perfected. Protecting your priority position is essential for ensuring that you are at the front of the line for payment.

While some retirement accounts have statutory protections, many investment vehicles and non-qualified plans are fully reachable through a tailored Collection Order. We analyze the debtor's entire financial portfolio to identify these vulnerable pockets of wealth. By securing specific orders for the liquidation of stocks, bonds and mutual funds, we can access capital that the debtor believed was untouchable. Our firm provides the technical expertise needed to draft these orders with the precision required by major investment houses.