Garnishments And Liens

Garnishments and liens are two post-judgment collection procedures that permit a plaintiff who has prevailed in his civil action against a defendant to obtain satisfaction for his judgment for monetary damages. Since a judgment for damages legally entitles the holder to collect the sum awarded, the judgment holder is frequently characterized as a judgment creditor and the defendant who has been found liable as the judgment debtor.

Judgment Required

Garnishments and liens are available only to individuals who have first obtained a judgment by a court of competent jurisdiction. When a plaintiff prevails in her civil action against a defendant, a court will enter the judgment on its docket and notify the plaintiff by sending her a copy of the entry. In most jurisdictions, a plaintiff who has been awarded a judgment must request that the court issue an "execution." The execution is an official document that bears the seal of the court and identifies the plaintiff as legally entitled to collect the damages stated in the document.

Garnishment

In most states, garnishment refers to the procedure of instructing an employer to set aside a specified amount of an employee's weekly wages for the benefit of the judgment creditor. A judgment creditor must apply to the court for approval of a writ of garnishment. Most jurisdictions exempt a specified percentage (usually 25 percent) of an employee's wages from a garnishment order. The writ of garnishment must be served on the employer for each successive pay period. The employer is directed to remit the approved amount of wages to the court, which then disburses the sum to the judgment creditor.

Lien

A judgment creditor can apply to the court for a lien to be placed on the real property of a judgment debtor. The lien acts as a cloud on the title to the property. Even if the judgment debtor is financially incapable of paying off the judgment when it was initially issued, should the judgment debtor wish to sell his home in the future, the lien acts as an encumbrance on the title to the property. This means the debtor would need to pay the judgment creditor the full amount of the judgment before the lien would be dissolved.

Duration

Each state establishes its own statute of limitations period for judgments that can range from five to 20 years. Most states allow a judgment creditor to renew the original judgment before its expiration. Once the statute of limitations period for the judgment has expired, any writs of garnishments or liens are automatically dissolved.

Considerations

Garnishments and liens are not mutually exclusive. A judgment creditor may apply to the court for a writ of garnishment as well as an order permitting him to place a lien on the judgment debtor's real property.