When a customer or associate owes your business past-due debts, these losses can eventually begin to impact your operations. Taking the matter to court can lead to a judgment in your favor, but it does not guarantee the debtor will actually pay.
A process called proceedings supplementary is a tool to consider when someone refuses to honor a court-issued judgment. Governed by Florida Statute §56.29, it can enable creditors to pursue assets that debtors may have concealed or disposed of to avoid payment.
Initiating proceedings supplementary
To start the process, you must file a motion and affidavit with the court. Your affidavit should contain details that confirm you hold an unsatisfied judgment. It should also describe the debtor’s non-exempt property or obligations that could satisfy the debt.
Legal guidance can be invaluable when initiating the process as it involves complex legal procedures and documentation requirements.
Court’s role and powers
Once the proceedings supplementary process is initiated, the court will have “broad and equitable” powers to enforce your judgment. Here are some possible options:
- Apply the debtor’s non-exempt property to the judgment
- Require any involved third parties to turn over the debtor’s assets
- Apply any debts owed to the debtor to your judgment
- Issue necessary writs to enforce the judgment
The court could opt to enforce the judgment by seizing and selling the debtor’s property to satisfy the debt.
The proceedings supplementary law offers significant advantages for those who have secured a judgment but cannot collect. Among its many benefits, it may prevent the need to domesticate judgments in other countries or states.
When handled with experience, it can streamline the collection process and prevent debtors from evading payment.
