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Difference between revisions of "Introduction to Creditors' Remedies (10:I)"
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Introduction to Creditors' Remedies (10:I) (view source)
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There are legal remedies available to creditors to enforce a debt, but the related procedures are frequently time-consuming and potentially costly, and there is no guarantee that the creditor will actually receive all of the funds owed. The most important reason for starting civil proceedings to collect a debt is to permit the creditor to execute on their judgment. Such execution proceedings may include: | There are legal remedies available to creditors to enforce a debt, but the related procedures are frequently time-consuming and potentially costly, and there is no guarantee that the creditor will actually receive all of the funds owed. The most important reason for starting civil proceedings to collect a debt is to permit the creditor to execute on their judgment. Such execution proceedings may include: | ||
# | #Examinations in aid of execution (to determine the debtor’s ability to pay the debt); | ||
# | #Subpoena to debtor hearing (to obtain a court order compelling the debtor to make payments on the judgment); | ||
# | #Garnishment (to compel third parties, such as banks and employers, to pay funds into court to the credit of the judgment rather than pay those funds to the debtor. See “Garnishment” at page 12); and | ||
# | #Collection by execution (to lodge a writ of execution with the bailiff who will then seize and sell the debtor’s assets and pay proceeds to the credit of the judgment). | ||
A judgment may also be filed on the title of real property owned by the debtor and will remain on the title of that property for two years unless it is renewed, discharged (by the debt being paid or bankruptcy), or the creditor commences proceedings to sell the property and apply the proceeds of the sale against the debt. | A judgment may also be filed on the title of real property owned by the debtor and will remain on the title of that property for two years unless it is renewed, discharged (by the debt being paid or bankruptcy), or the creditor commences proceedings to sell the property and apply the proceeds of the sale against the debt. | ||
