A powerful tool for creditors of Florida judgments
There are times when traditional judgment enforcement paths do not yield adequate results and supplementary measures must be implemented. If judgment creditors are unable to satisfy their judgments after obtaining a writ of execution and attempting garnishment or property seizure, in accordance with Florida Statute 56.29, creditors have the option to initiate proceedings supplementary to execution.
Proceedings supplementary to execution reach beyond the scope of traditional enforcement paths of garnishment, levy or the attachment of liens. The statute gives creditors the opportunity to file a motion requiring the debtor to appear in court or before a magistrate, in the county where the debtor resides, for examination of his or her assets. During this examination, the debtor must testify under oath, and provide a comprehensive report of all matters pertaining to their business and personal financial interests. Witnesses may also be called to testify. Within a one year time frame of service of process for the underlying lawsuit, any personal property the debtor transferred, gifted or otherwise conveyed to a spouse, relative or other person in close confidence with the debtor, can be seized by the sheriff and applied to the unpaid judgment.
Some further examples for how these proceedings can assist in satisfying an unpaid judgment are below:
- Creditors can obtain court ordered injunctions to prevent the transfer of debtors’ properties.
- If the judgment debtor transfers or gifts property to a third party in an effort to delay or defraud the creditor, the court can reverse the transfer of the property.
- The court may also reverse a fraudulent conversion of assets. If the debtor attempts to use a non-exempt asset to purchase or obtain an exempt asset, this is considered a fraudulent conversion.
- Debtors often attempt to hide behind a shield of corporate protection, sometimes establishing corporations in an attempt to deceive creditors, or simply using the established corporation to act on behalf of personal interests. Pursuant to Florida Statute 56.29, creditors can pierce the corporate veil in some instances, such as these, to sue the debtor as an individual.
- ‘Reverse piercing’ is also an option in many cases. This is when a creditor sues a corporation that the individual debtor may have used to harbor personal assets to escape collection.
- Court appointed receivers can be used to take possession of assets for the purpose of liquidation.
If you are a judgment creditor and would like more information on how these proceedings might help you, please contact us at (877) 879-9880. Judgment Enforcement Solution, Inc. has a full legal team with the ability to initiate legal proceedings, such as these, on your behalf. Our staff is well versed in all areas of judgment recovery and would be happy to answer any questions you may have.
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