Why a Collections Attorney Is Essential for Cash Advance Recovery
A collections attorney uses legal tools like UCC liens and litigation to recover funds efficiently for merchant cash advance funders facing defaults.
Winning a lawsuit in New York is a significant victory, but the real challenge often begins when the debtor doesn’t pay the judgment. If you’re holding a court judgment in Manhattan or anywhere in New York, collecting a judgment can feel like a battle of its own. As a judgment attorney based at 225 Broadway in Manhattan, we help clients turn their paper wins into actual recoveries. Here’s a comprehensive guide on how to enforce a judgment in New York, covering everything from understanding your judgment to navigating state and federal enforcement options.
A judgment is a court order stating that someone—the judgment debtor—owes you, the judgment creditor, money. This could stem from a business dispute, contract breach, or other legal claim. In New York, once the court issues a judgment, the responsibility to collect judgments falls on you. The debtor isn’t obligated to pay voluntarily, and many don’t, making judgment collection a critical next step.
Before diving into enforcing a judgment, it’s essential to assess its collectability. Not every judgment guarantees payment, even with diligent efforts. As your judgment collection experts, we evaluate factors like the debtor’s available assets, the jurisdiction where the judgment was issued, and any potential challenges to the judgment’s validity. We also consider the timeline for collecting a judgment, which is a critical aspect of how to enforce a judgment effectively. In New York, a judgment is valid for 20 years, but it must be renewed within 10 years to maintain its enforceability on real property liens, as per New York’s Civil Practice Law and Rules (CPLR). Additionally, we assess applicable statutes of limitations and the likely costs of enforcement across state and federal courts. This candid assessment helps you make informed decisions about whether the investment in collecting judgments is worthwhile, ensuring your judgment collection strategy is both practical and cost-effective.
To collect judgments effectively, you need to know what the debtor owns—bank accounts, wages, real estate, or other property. New York law provides tools like subpoenas and information requests to uncover these assets, but debtors often hide them. Understanding how do you collect on a judgment starts with thorough asset discovery, a step we prioritize to ensure your judgment collection efforts are targeted and efficient.
Efficient judgment collection requires a strategic approach to gathering information. We leverage state and federal legal processes to identify debtor assets, even if they’re located overseas. For instance, issuing state and federal subpoenas to U.S. financial institutions can reveal critical details about a debtor’s domestic and foreign assets, thanks to the U.S. banking system’s global reach. If the debtor has no assets in the judgment’s jurisdiction, we can domesticate the judgment in other states using the Uniform Enforcement of Foreign Judgments Act (UEFJA) or in federal courts under Rule 69 of the Federal Rules of Civil Procedure. This ensures we can collect a judgment wherever the debtor’s assets are found.
New York offers several methods for enforcing a judgment, each with its own rules. Wage garnishment allows you to take a portion of the debtor’s paycheck, though it’s capped at a percentage of income under New York law. A bank levy lets you freeze and seize funds from the debtor’s accounts, while property liens attach a claim to their real estate, collectible when sold. Knowing how to enforce a judgment means selecting the right method for your situation, and we ensure compliance with the Civil Practice Law and Rules (CPLR) to avoid delays.
Enforcing a judgment in state and federal courts involves navigating different procedures. In New York state courts, we file the necessary paperwork with the county clerk to execute liens or levies. In federal courts, a judgment is enforced via a writ of execution under Rule 69, which aligns with state procedures where the court is located. State and federal discovery tools, like those under Rule 69(a)(2), allow us to obtain information from the debtor or third parties, ensuring we can collect judgments effectively.
Debtors in Manhattan often use tactics to avoid paying a judgment, such as transferring assets, claiming bankruptcy, or ignoring court orders. As seasoned judgment collection attorneys, we counter these moves with strategies like contempt motions or piercing fraudulent transfers. Acting quickly is crucial—delaying can let assets disappear, making collecting a judgment harder.
Enforcement litigation in state and federal courts can be slow due to busy dockets, budget constraints, and prioritization of criminal cases. Additionally, fair debt collection laws, both state and federal, impose strict rules on how to enforce a judgment. We stay within these legal boundaries while using discovery tools and exemption statutes to maximize recovery, ensuring your judgment collection process is both effective and compliant.
Collecting a judgment isn’t a DIY task. The process involves navigating New York’s CPLR, filing precise paperwork, and sometimes returning to court. Debtors may challenge the judgment’s validity or refuse to comply with discovery, requiring motions for contempt. A judgment attorney understands these complexities and can handle the heavy lifting—locating assets, executing levies, and fighting resistance—so you can focus on your business.
At David I. Mizrahi Law P.C., we focus on enforcing a judgment in New York, particularly for MCA funders. Based in Manhattan, we guide clients to collect on judgments by leveraging state and federal tools, ensuring their court wins translate into real recoveries.
If you’ve won a judgment in New York but haven’t been paid, don’t let it sit uncollected. Contact us for a free consultation. As a dedicated judgment attorney, we’ll guide you through how to enforce a judgment, from asset discovery to enforcement, ensuring you collect on your judgment efficiently. Call or email today and let’s turn your judgment into the recovery you deserve.
A collections attorney uses legal tools like UCC liens and litigation to recover funds efficiently for merchant cash advance funders facing defaults.
A collections attorney leverages UCC liens to help funders recover funds efficiently when merchants default on merchant cash advance agreements.
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