Obtaining a judgment is considered a crucial decision in the debt collection journey. When an individual or business lends money from someone, they must pay the debt. Otherwise, the creditor can take legal action. Creditors can raise the issue in court, and if the court issues the judgment in their favor, the debtor is legally obligated to pay.
A judgment provides the creditor legal authority to take adequate measures to pursue the amount of debt. However, a judgment is not permanent, which means the creditor must take the steps to collect their money within the specific period set by law. The duration of a judgment varies based on the state laws.
Generally, the judgments are valid for 2–3 years. However, some states provide a longer time for judgment, extending up to 20 years. Judgment time is increasingly crucial to take the necessary actions and collect the amount on time. After a judgment is made and the debtor still refuses to pay, the creditor can enforce strict collection measures to pursue the debt amount. These measures include putting a lien on the property, garnishing a portion from the wage, or directly transferring the amount from the bank. In a nutshell, the importance of judgment can not be ignored in the debt collection process.
In this blog, we will talk about the duration of judgment, why it matters, and methods that are suitable for judgment collection.
What Should Be the Ideal Duration of a Judgment
Once judgment is made, the creditor gets the limited time to collect the debt using adequate measures. The duration of the judgment depends on the jurisdiction and state laws. In some states, a judgment is valid for only a few years, requiring the judgment creditor to act proactively to collect their money. In other words, it can remain up to 20 years, giving sufficient time to pursue the collection efforts.
In Florida, the typical duration of judgment is 20 years. During this period, the creditor can take necessary steps to recover their owed money. Once this period is over, the judgment is considered expired, and the creditor can not enforce actions to pursue the collection.
Each state has its rule, which determines how judgment remains enforceable. In some states, a judgment can be renewed before the expiration to extend the collection time. For this, creditors must file an application in court where the original judgment has been issued. Generally, a timeframe of 10 years or more is considered sufficient for judgment, during which the creditor can enforce a judgment or take other measures to obtain the debt. Judgment creditors should understand the time limit of their jurisdiction and take necessary steps to recover their money before the judgment expires.
How Creditors Collect on a Judgment
Judgment creditors use different methods of collection depending on the situation of a case. This includes wage garnishment, placing a lien on your property, or seizing your bank account for direct fund transfer. Let’s understand in detail:
Wage Garnishment
Typically, creditors use the wage garnishment method to recover the debt. However, there is a federal limit on how much can be garnished from debtor’s disposal earnings. Typically, creditors can garnish up to 25% of the debtor’s weekly disposable earnings. The garnishment amount can not increase by more than 25%, even if the disposable earnings are very high.
Bank Account Levy
Bank account levy is another popular method of judgment collection that allows judgment creditors to take funds directly from the judgment debtor account. For this, creditors get a court order to levy the debtor’s bank account. The bank will freeze the debtor’s bank account so they can not access it and send the fund to creditors to satisfy the judgment. Creditors can levy the debtor’s bank account several times to satisfy the judgment amount.
Placing Lien on Property
If a judgment debtor owns the property, a creditor can get the order to place a lien on their property. They can place a lien on both real estate and personal property.
Conclusion
Judgments are a court-ordered decision that plays a crucial role in the debt collection. The period of judgment is typically important for creditors to use proper measures within the timeframe and recover what belongs to them. Also, hiring a professional attorney can offer a viable solution for your specific situation. If you are a judgment creditor tired of chasing a delinquent debtor, look no further than the Public Loss Adjusters. Our experienced team will help you understand every nuance of judgment collection, offering a hassle-free solution to recover your judgment.
