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Civil Collection

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SusanGrainger

Junior Member
In 2006 I won a civil suit in which I was to collect 1950.00 from the defendant. The manner of the collection was garnishment of his bank accounts, however, he closed his accounts and moved out of state (from VA to NC). The garnishment still stands but no way to collect since the defendant moved out of state. What do I need to do?
 


Antigone*

Senior Member
In 2006 I won a civil suit in which I was to collect 1950.00 from the defendant. The manner of the collection was garnishment of his bank accounts, however, he closed his accounts and moved out of state (from VA to NC). The garnishment still stands but no way to collect since the defendant moved out of state. What do I need to do?
Locate his other assets and attempt collection procedures that way.
 

sandyclaus

Senior Member
In 2006 I won a civil suit in which I was to collect 1950.00 from the defendant. The manner of the collection was garnishment of his bank accounts, however, he closed his accounts and moved out of state (from VA to NC). The garnishment still stands but no way to collect since the defendant moved out of state. What do I need to do?
Figure out what other assets he has and try to collect from those. The closed bank account obviously can no longer be garnished.
 

LOSP

Junior Member
Enforce your right to hold a Debtor's Exam. Call the court which awarded the judgement and find out the procedure. He will have to be served. The examiner will be able to collect information that will potentially give you the opportunity to collect. Good luck!
 

sandyclaus

Senior Member
And don't forget to domesticate the judgment to allow for you to collect upon them in NC.

The nice thing about sister-state judgments is that it allows you to register and lodge the judgment within their NEW state of residence and makes it possible to collect from them even when they have moved.
 

dcatz

Senior Member
OP – I’d like to offer a cautionary note about the advice given in the two previous posts (#4 and #5), despite being happy that, by post #5, somebody thought to mention domesticating the judgment in NC. The reason for further consideration is the amount of your judgment.

Every state permits debtor exams. I don’t think they are particularly effective but reasonable minds can differ. The point is that there can be many attendant problems which you can learn about more easily by using the “search” function on this site. You may have an added one that hasn’t been previously mentioned. Every state as a geographic limitation on the distance a debtor can be compelled to travel from residence or business to attend. In my own state, it is 150 miles from residence or business to court. We don’t know VA’s, but would it present an insurmountable problem if you wished to go that route? Since you’d have to domesticate in NC to enforce, it probably is more efficient to domesticate first and conduct the exam in NC.

That brings us to domestication. Like my own state, NC has not adopted the more simplified UEFJA (Uniform Enforcement of Foreign Judgments Act). Domestication requires that you follow its statutory scheme, which includes effectively filing a new suit in the NC court and is explained in N.C. Gen. Stat. sect. 1C-1710 et seq., which you can find here:
http://law.onecle.com/north-carolina/1c-enforcement-of-judgments/index.html

You got a judgment for $1,950 and have added approximately 6 years of post-judgment interest, but I suspect that still makes it a “wobbler” in terms of the expense to domesticate and enforce. Unless you have asset information which virtually guarantees that you can collect judgment, interest, cost of domestication and enforcement in NC, I’m very sorry to say that you may be throwing good money after bad.

That raises the last issue: NC is part of a very small minority of states that prohibits wage garnishment for creditor debts (as opposed to taxes, child support and health treatment at a “public” hospital). In a nutshell, collection will be hard without identifiable assets and a very good enforcement plan. The difference between feasible and cost-effective is important. Tally the potential costs against the potential for recovery. You might want to talk to a retail collection attorney in NC (who operates on a contingent basis but will take a big piece if successful) or consider selling the judgment to a professional judgment collector in NC for a smaller but quicker return.
 
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