When a money judgment becomes final and the debtor does not pay, the winning party enforces it through a writ of execution, and the sheriff collects by garnishment or levy. Garnishment reaches the debtor's money and credits in the hands of third parties, such as bank deposits, receivables, and wages, ordering the third party to hold and turn over the amount. Levy reaches the debtor's real and personal property, which the sheriff seizes and sells at public auction, applying the proceeds to the judgment. Certain property is exempt from execution.
A judgment for money is only paper until you collect on it. When a losing debtor won’t pay voluntarily, the law provides the tools to seize their assets — chiefly garnishment and levy.
The Writ of Execution
Once a money judgment is final and executory, the prevailing party moves for a writ of execution. The court issues it, and the sheriff is tasked to enforce it. The sheriff first demands payment from the judgment debtor. If the debtor pays, the matter ends. If not, the sheriff proceeds to collect from the debtor’s assets through garnishment and levy.
Garnishment: Reaching Money in Others’ Hands
Garnishment reaches the debtor’s money, credits, and personal property in the possession or control of third persons. The classic targets are:
- Bank deposits — the sheriff serves a notice of garnishment on the bank, which must hold the debtor’s funds up to the judgment amount and turn them over;
- Receivables — money owed to the debtor by others (customers, tenants), garnished from those debtors; and
- Wages/salary — garnished from the employer, subject to the exemptions the law provides.
The garnishee (the third party) is bound to comply and turn over the amount; failing to do so can make them liable. Garnishment is often the fastest, most effective route where the debtor has a known bank account or receivables.
Levy: Seizing the Debtor’s Property
Levy reaches the debtor’s own property — both personal property (vehicles, equipment, goods) and real property (land, buildings). The sheriff levies on the property (for real property, by annotating the levy on the title), then sells it at a public auction (execution sale). The proceeds are applied to the judgment, costs, and interest; any surplus goes to the debtor; and a deficiency can be pursued against other assets. For real property sold on execution, the judgment debtor generally has a right of redemption within the period the rules allow.
Exempt Property
Not everything can be taken. The Rules exempt certain property from execution, including the debtor’s necessary clothing and household furniture up to a value, tools and implements necessary for their trade or livelihood, a portion of wages for personal services needed for family support, and other items the law protects (and the family home is generally exempt within its statutory limits). These exemptions ensure execution does not strip a debtor of the basic means to live and work.
Finding the Assets
Collection depends on locating assets. Where the debtor’s assets are unknown, the prevailing party may seek an examination of the judgment debtor (and of third persons who owe the debtor) under Rule 39, compelling disclosure of income and property to garnish or levy. So a judgment creditor is not helpless against a debtor who hides assets.
Practical Advice
- After a final money judgment, promptly seek a writ of execution and identify the debtor’s bank accounts, receivables, and property to garnish or levy.
- Garnishing a bank account is often the quickest recovery; levying real property takes longer (auction and redemption).
- If assets are hidden, use the examination of the judgment debtor to uncover them — and note the exemptions that protect basic property.
Frequently Asked Questions
How do I collect on a money judgment? After the judgment is final, move for a writ of execution. The sheriff demands payment and, if unpaid, collects through garnishment of the debtor's money and credits held by third parties, and levy on the debtor's property, which is sold at auction.
What is garnishment? The reaching of the debtor's money, credits, and personal property in the hands of third persons, such as bank deposits, receivables, and wages. The garnishee must hold and turn over the amount up to the judgment.
What is levy? The seizure of the debtor's own real and personal property by the sheriff, which is then sold at a public auction, with the proceeds applied to the judgment. Real property sold on execution is generally subject to a right of redemption.
Is any property exempt? Yes. Necessary clothing and household furniture up to a value, tools necessary for the debtor's trade, a portion of wages needed for family support, and the family home within its limits, among others, are exempt from execution.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
If you have a judgment to collect, or your assets are being garnished, our firm can help you enforce or protect your rights. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.