Property Levy and Writs of Execution
A common tactic imposed by creditors attempting to collect on a judgment is a writ of execution or a property levy. In different states these actions are referred to by different names but in essence they allow a sheriff or court officer in the debtor jurisdiction of the judgment to seize property to be sold or liquidated against the judgment.
The process of actually filing these actions varies state to state. Some states it is as simple as filing the paperwork and the order is issued while in some states plaintiffs must have the writ issued as a result of a hearing. Once the writ is issued the constable or sheriff will then begin their efforts to try to collect. What property is fair game depends on a number of factors. Most states have exemptions for consumers that do not allow a primary residence, primary vehicle and living essentials such as appliances and home computers to be subject to enforcement. Heirloom articles may also be exempt from enforcement as well if the debtor can provide provenance of the items history.
If executable items are found they are typically sold at a sheriffs sale. Successfully conducting a property levy can be expensive as the plaintiff usually needs to pay a bond prior to the sheriff executing against property. Additionally when items are trapped they have to be advertised in the sheriffs sale and the sheriff themselves will have fees that they charge to conduct the levy and sale.
Property levys involving businesses are similar but there are usually fewer exemptions protecting businesses. When a sheriff conducts a levy on a business they can also do a “till tap” where they basically withhold the funds from the cash registers and credit card terminals the day they conduct the levy. They can also seize commercial equipment to satisfy a judgment.
While these actions can be effective there are limitations and requirements that must be met for a levy to be successful. Many levys fail because title to the property cannot be clearly established. This is common when a judgment is against a person who lives with a spouse not named on the judgment. As the spouse can claim ownership of the items and title is not verified by a serial number or state issued title record it can be nearly impossible to determine ownership. Likewise business equipment that is rented or leased or is encumbered by a UCC lien is typically also off limits from a property levy.
