Posted by Dave T on July 09, 2009 at 06:46:51:
In Reply to: enforcing judgements posted by Chyna on July 03, 2009 at 20:32:55:
Federal law limits wage garnishment to 25% of the employee's disposable income. Wage garnishment continues until the entire debt is paid or arrangements are made to pay off the debt.
Currently, four states — North Carolina, Pennsylvania, South Carolina and Texas — do not allow wage garnishment at all except for debts related to taxes, child support, federally guaranteed student loans, and court-ordered fines or restitution for a crime the debtor committed. Several other states have maximum thresholds that are lower than the 25% provided by federal law.
States may also prohibit garnishment altogether in certain circumstances. For example, in Florida the wages of a person who provides more than half the support for a child or other dependent are exempt from garnishment altogether (though this exemption is subject to waiver).
It is not true that a judgment really means nothing. It is true, however, that a judgment is not an order to pay. Many debtors don't have assets that can be levied, attached, or seized to pay the judgment at the time the judgment is awarded and just ignore the judgment. Many debtors in this situation who also don't have garnishable income are called "judgment proof"
Judgment creditors often don't pursue judgments because they don't know how and/or there is nothing to get. Even though a judgment may be enforceable for up to ten years, many landlord judgment creditors just consider judgments not worthwhile to pursue and write off their loss as a cost of doing business.
It does cost some money to pursue a judgment collection. Even more if the debtor has moved out of state. There are professional judgment collection companies that may buy your judgment (10 cents on the dollar is common) and pursue collection at their expense if the judgment is worthwhile and collectible. Other judgment collection professionals may offer to work your judgment for a 50% contingency fee (after expenses).