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Judgment Creditor Questions

A judgment creditor is a party that has proven they are owed a debt through a legal proceeding and is allowed to use the court system to collect that debt. State laws offer access to a debtor's property in order to satisfy the debt owed. This means the court can seize a person's personal property and money. The debtor is summoned to court to evaluate the value of their property. The property is usually held under a lien until the debt is paid. Once the debt is completely paid, the lien will be lifted from the property. In some cases, the person's property will be sold to satisfy a debt. Below are a few of the more commonly asked questions regarding judgment creditors.

In Virginia, does a judgment creditor have a duty to notify the Court when a judgment is paid in full? If so, what is the citation?

Once a judgment has been satisfied, by law, the judgment creditor or his/her attorney should make sure the judgment is released. However, when a judgment debtor pays the judgment, the debtor can request that the judgment creditor sign a document stating that the judgment has been satisfied (they received their money). When the judgment creditor has signed the document, it can be entered in the docket and with the court. If you would like to learn more, here is a link to the Virginia Court Form for Release of Judgment Lien.

Once you have filled out the form, you need to send it to the judgment creditor. Request that the judgment creditor sign the Release of Lien and have the document notarized. When these steps are completed, you need to take it to the court house and have it docked and filed with the Clerk of the Circuit Court.

If I want to enforce a foreign judgment in CO, must I hire a CO attorney? Can my in-state attorney file the judgment?

You can file a foreign judgment in Colorado in order to domesticate it. This doesn't require an attorney. You will need to file a certified copy of the judgment and a notice of foreign judgment in the Circuit Court clerk's office where you want the document to be enforced. When you file, the judgment will be noticed under the Full Faith and Credit Clause of the US Constitution and the Uniform Enforcement of Foreign Judgments Act, C.R.S. Section 13-53-101. You will then be able to seek collection.

Can judgment against an RI LLC member be charged to the business? The member with judgment is 59% shareholder that is not active in the business

If the judgment is against the member and not the LLC, the judgment can't be applied to the LLC. However, if the judgment creditor wanted to take the member's interest in the LLC, they would have a controlling interest in the LLC. The only thing that would prevent this is if the LLC Operating Agreement stipulated a vote on all decisions would be required or if there were provisions listed that would entitle the LLC members to buy the interest.

If I purchase a judgment from a judgment creditor, would I ask the court to list me as the judgment creditor?

In a situation like this, there is no need to have your name added to the judgment. As long as you have a contract that states you have bought the interest in the judgment from the creditor. With the contract, you can enforce the collection on the judgment through court or a collection agency.

A judgment creditor is the party who is owed a debt and has proven to the courts that the debt is valid. When a judgment creditor is awarded the judgment, they have the ability to seize the debtor's personal property in order to satisfy the debt. If you owe a debt or someone owes you, you should consult an Expert to clarify your doubts and assist you with your individual situation.
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