QUESTION

civil judgement collections

Asked on May 21st, 2013 on Civil Litigation - North Carolina
More details to this question:
Hello question please if a summary judgement (supreme civil) is approved in NYS court 1. is it inforceable in NC charlotte 2. what does the creditor has to do to collect in nc 3. what are the limitation for the nys attorneys, as far as garnishment, bank accounts, etc... 4. how can one protect them self from judgement actions in NC?? Thank you David Wallach
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1 ANSWER

Appellate Practice Attorney serving New York, NY
A New York judgment can be enforced in North Carolina once it is "domesticated" there, i.e. once some procedures are followed to record the judgment in North Carolina.  It would be a little more difficult adn take longer if the NY judgment was on default but, unless the New York court lacked jurisdiction over the debtor, the judgment would be domesticated in North Carolina.  The creditor will seek to find assets and income of the debtor which can be used to satisfy the judgment, and to do so will use various discovery procedures (interrgatories, depositions, etc.) to locate assets/income, and then follow North Carolina procedures (each state has its own, but their basic nature is the same) to garnish income (i.e. have all or a portion of it paid over to him until the judgment is satisfied) and/or to have the debtor's assets sold in order to satisfy the debt.  The limitations period to collect on a judgment is 20 years in New York; it might be a different period in North Carolina.  There are various legal obstacles which a judgment debtor can put in the creditor's way (for example, debtors change banks if the creditor knows of an account at one bank, or transfer assets to a spouse or family member, etc.), but anything the debtor does to avoid his obligations can be undone.  For example, if the debtor transfers his assets to his brother for no consideration in order to avoid paying the judgment, that would be a fraudulent conveyance.  While the creditor would have to start another lawsuit to undo the transaction, the debtor and the family member would likely wind up, after the fraudulent conveyance lawsuit, owing more money that they started.
Answered on May 21st, 2013 at 4:04 PM

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