COLLECTING YOUR JUDGMENT: PART TWO
As discussed in part one of this series, when a creditor is faced with a balance owed on a judgment, in Indiana, the creditor may decide to file a proceeding supplemental to obtain more information from the debtor regarding assets that may be available to satisfy the judgment. Part two of this series looks at the further court action that a creditor may take in order to collect on a judgment.
If the debtor’s examination in the proceeding supplemental discloses bank accounts, the creditor may submit interrogatories and a court order compelling the financial institution to post a hold on the bank account, pending further order of the court. Upon a subsequent hearing, the judge may order some or all of the account to be paid to the creditor to satisfy its judgment.
If the creditor learns that the debtor is employed, the creditor may take steps to garnish his wages. Under current Indiana law, a creditor cannot garnish the first $217.50 per week of the debtor’s net income. For any net income greater than $217.50 per week, the creditor can garnish up to 25% of the income. However, in the event that the debtor has a prior garnishment or a child support order, those orders will take priority over the creditor’s garnishment. Once the prior garnishment is paid or the child support order is lifted, then the creditor’s garnishment is next in line.
Parts one and two of this series have discussed some of the creditor’s options in Indiana for collecting a judgment through additional court proceedings. Part three of the series will introduce an option that does not necessarily involve going back to court to collect on the judgment.