In Florida, when a creditor is owed money and files a claim against the debtor, simply obtaining a judgment does not automatically mean they will receive payment. Debtors often used various sleight-of-hand financial moves to avoid paying even if they are legally obligated to do so and they have exhausted all avenues to avoid it.
This is when the creditor needs to consider tactics of their own to try and collect. One such strategy is a proceedings supplementary. Understanding how this works under the law is critical from the outset and having legal guidance in moving forward is key.
Know how to ensure a debt is paid through a proceedings supplementary
When a debtor moves their assets to avoid paying a debt they have been legally ordered to pay, the creditor needs to understand there are ways to collect. Transferring assets is a long-held way in which debtors kept from paying creditors chasing them. With a proceedings supplementary, the debtors may see their wages garnished, levies put on their bank accounts, or their assets seized outright.
If the debtor transferred assets to another entity or simply gave them to another person, that does not mean they will not be obligated to pay. That third party will be required to turn them over.
Another way debtors try to avoid paying is to simply start a new business. If this is deemed as the same type of business and the new structure was simply to avoid paying the debt, they can be ordered to pay based on this law. Some assets are exempt from garnishment. The primary objective is to achieve a fair outcome for the creditor so they can collect what is owed.
Legal advice can be helpful with collecting unpaid debts
There are multiple strategies a creditor can use to get what they are owed from a delinquent debtor. If they have obtained a judgment and still cannot get paid for any reason, considering a proceedings supplementary can be useful. Having guidance from those experienced in business litigation can help with pursuing payment.
