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Post-Judgment Enforcement in Commercial Debt Collection

 Posted on February 14, 2024 in Bankruptcy

Blog ImageIn the realm of commercial debt collection, post-judgment enforcement plays a vital role in ensuring the satisfaction of outstanding debts. When Illinois debtors fail to fulfill their obligations, creditors can use various enforcement methods to recover what is owed. When approaching this kind of situation, there are three potentially effective enforcement tools: wage garnishments, levies, and liens. Understanding these methods is crucial for creditors seeking to enforce their rights and collect outstanding debts. Contact a lawyer to get started on this process today.

Wage Garnishments in Post-Judgment Enforcement

Wage garnishment is a legal process that allows a creditor to collect a debt directly from a debtor’s wages in the context of post-judgment enforcement in commercial debt collection:

  • Obtaining a court order – Creditors must first obtain a court order authorizing the wage garnishment. This order specifies the amount to be withheld from the debtor’s wages.

  • Serving the garnishment order – The order is then served on the debtor’s employer, who is then legally obligated to withhold the specified amount from the debtor’s wages and remit it to the creditor

Levies in Post-Judgment Enforcement 

A levy is a legal seizure of a debtor’s property to satisfy a debt. Obtaining a levy may include:

  • Obtaining a court order – Creditors must obtain a court order to initiate a levy. This order allows them to seize and sell the debtor’s property to satisfy the debt

  • Implementing the levy – With the assistance of law enforcement or a court-appointed officer, creditors carry out the levy by seizing the debtor’s property. The property is then sold, and the proceeds are used to satisfy the debt

  • Types of property subject to levies – Levies can be applied to various property types, including bank accounts, real estate, vehicles, and other valuable assets the debtor owns

Liens in Post-Judgment Enforcement

A lien is a legal claim or encumbrance on a debtor’s property to secure the debt payment. Important information about liens in post-judgment enforcement includes:

  • Filing a lien – Creditors can file a lien against the debtor’s property, such as real estate, to establish a legal claim. This prevents the debtor from selling or transferring the property without satisfying the debt.

  • Priority and enforcement – Liens may have different priorities depending on the type of debt and the jurisdiction. Once a lien is filed, the creditor can enforce it by seeking a court-ordered sale of the property to satisfy the debt.

  • Release of liens – Liens can be released once the debt is satisfied, typically through payment or other agreed-upon arrangements. Proper procedures must be followed to release liens to avoid any future complications

Contact Our Chicago, IL Commercial Judgment Enforcement Lawyers 

Post-judgment enforcement is critical to commercial debt collection, enabling creditors to enforce their rights and collect outstanding debts. Contact the skilled Cook County, IL commercial judgment enforcement attorneys with Teller, Levit & Silvertrust, P.C. for legal guidance in this matter. Call 312-922-3030 for a private consultation.

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