In the Commonwealth of Massachusetts, the prevailing party in a lawsuit receives a judgment, which is the official result of a lawsuit in court. While a judgment is, in effect, a court order directing the losing party to pay the prevailing party, receiving a judgment does not guarantee that the defendant will automatically pay the amount owed. If the defendant does not pay the amount owed as required by the judgment, the plaintiff must take steps to enforce the judgment.
First Steps
The first step following the issuance of a judgment in a creditor’s favor is to request the original execution from the Court, which is known as a writ of execution. This is a document from the court that allows an attorney to engage in post-judgment collection tactics such as property seizures. A writ of execution should be obtained within one (1) year after the judgment is issued
Pursuant to Massachusetts General Laws (“MGL”) chapter 235, section 17, an execution on a judgment cannot be issued by the Court as a matter of right more than one (1) year after the judgment issues. If a creditor fails to timely request the execution, the creditor will have to file a motion for the issuance of an execution which is at the discretion of the Judge hearing the motion.
What to Do if the Defendant Does Not Pay Voluntarily?
If a defendant does not pay voluntarily in Massachusetts, the plaintiff has various options to pursue to pursue payment from a debtor.
First, you may give the writ of execution to the County Sheriff to seize and sell the defendant’s property to recover the amount owed. In many cases, this property is a motor vehicle or piece of equipment belonging to the defendant.
Next, there is a statutory remedy under Section 3 of Chapter 214 of MGL, which enables the creditor to “reach and apply” monies “due or about to become due” to the debtor.
The process to “reach and apply” involves obtaining a court injunction that prohibits the third party from making payments to the debtor and instead compels them to pay the owed funds directly to our clients. This prevents the debtor from receiving and potentially misusing the funds, increasing the likelihood of successful debt recovery. Reach and Apply Injunctions are instrumental in enforcing judgments and securing payments, providing creditors with a legal tool to navigate the complexities of debt collection and ensure a favorable outcome.
For example, if a creditor has a judgment against the debtor and the debtor is going to be receiving money from a third party for rent, monies paid on a loan and /or investments, as examples, the creditor then has the opportunity to “reach and apply” those payments that “are due or about to become due” a debtor in order to satisfy the judgment.
Moreover, a creditor has rights under Massachusetts Trial Court Rule 9. The rights granted to creditors under Rule 9 is to file a “Notice to Show Cause” with the court in which they obtained judgment. Upon being informed by the plaintiff that a defendant who has been ordered to pay has failed to obey the order, the court will schedule the matter before the court for enforcement proceedings and shall issue a Notice to Show Cause to the plaintiff, who must arrange for the Notice to Show Cause to be served by an officer duly qualified to serve it upon the defendant. Upon hearing, the court shall take such action, permitted by law, as it deems appropriate to the end that orders of payment are complied with promptly and satisfaction of the judgment in the case is not frustrated.
A defendant who shows that they are unable to pay the judgment amount is required to complete a financial statement on a court-provided form. This form is not available for public inspection, but is used by the court, attorneys, and parties of the case to determine the factual likelihood that the defendant is actually unable to make the payment. The inability to pay does not extend to property that can be taken or sold, so plaintiffs should be diligent in seeking out what a defendant owns and does not include in their financial statement that shows their income does not allow them to pay a judgement.
In Massachusetts, defendants that are currently unable to pay judgments are not automatically exempt from judgement. Payment obligations in the state can be enforced for twenty years if the defendant’s financial state improves during that time. However, many times defendants are required to turn over valuable property immediately in cases where they are unable to pay the dollar-amount owed from the court’s judgment.
How Do I Find a Judgment Debtor’s Assets?
To obtain a money judgment from a defendant who does not voluntarily pay, a plaintiff must first determine what assets the defendant has. In Massachusetts, a plaintiff can seek post-judgment discovery of a defendant. Post-judgment discovery can be used to request information and documentation about a defendant’s assets, including bank statements, paychecks, and tax returns.
Alternatively, a plaintiff can bring a new lawsuit solely focused on obtaining a money judgment from a past case. This lawsuit, called a supplementary process action, requires a debtor to appear in court and submit to an examination under oath to detail their assets. In these cases, outside witness may be called to testify as to the debtor’s assets, which may allow plaintiffs to learn about valuable property a debtor may own.
What to Do When the Judgment is Paid?
When full payment of a judgment is made, the plaintiff must file an Acknowledgment of Satisfaction of Judgment with the court within ten days. If a plaintiff fails to file an Acknowledgement of Satisfaction of Judgment, a defendant may request the court to order a docket notation indicating full satisfaction of the judgment. Though the plaintiff is required to file the form on their end, a defendant may take steps to ensure that their credit is protected once they have paid off their full debt.
Conclusion
If you are owed a debt or need help enforcing a judgment, consult an experienced Romano Law attorney to ensure you receive the monetary award you are entitled to.
Contributions to this blog by Michael Touma.
