After winning a business lawsuit, the next step is enforcing the judgment. You may have successfully obtained a court ruling in your favor, but that doesn’t guarantee the other party will voluntarily pay or comply. In California, enforcing a business judgment involves specific steps and strategies to ensure you get the compensation or result you’re entitled to.
Understanding business judgment enforcement
Enforcing a judgment means taking legal actions to collect the money or property awarded by the court. This is especially important when a party refuses or fails to pay. The process can be complex, involving various legal tools to compel the debtor to comply with the judgment. Understanding these methods will help you decide the best course of action.
Legal tools to enforce a judgment
One of the most common ways to enforce a judgment is by garnishing wages or bank accounts. This means a portion of the debtor’s earnings or funds in their account is directly sent to you until the debt is paid. Another option is placing a lien on the debtor’s real property, which prevents them from selling or refinancing until they settle the debt. Property can also be seized and sold to satisfy the judgment.
Post-judgment discovery
If you’re having difficulty locating the debtor’s assets, post-judgment discovery can help. This allows you to request information about the debtor’s finances, property, and other assets. By compelling the debtor to provide this information, you can identify the best way to pursue enforcement.
Keep track of deadlines
In California, you typically have a limited time to enforce your business judgment, usually 10 years from the date the judgment is entered. If you don’t act within this period, you may lose the right to collect. Make sure to monitor your deadlines and take action promptly to avoid this risk.
Enforcing a business judgment can be challenging, but with the right approach, you can secure the result you deserve.