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Examinations in Aid of Execution
An examination in aid of execution is a remedy available to a creditor who has obtained a judgment against a debtor. The main purpose of the examination is to obtain information about the debtor’s ability to pay the judgment. A creditor is therefore entitled to ask and should ask questions about the debtor’s income, assets, and liabilities as well as the debtor’s present, past, and future means to satisfy the judgment.
The lawyers at Rose Law Firm have experience conducting these examinations to determine where value can be extracted from the debtor, whether it be in real property, personal property or otherwise. We have conducted successful enforcement proceedings to help creditors collect on their judgments.
If you don’t pay your debts, taxes, or child support, a creditor can obtain a Notice of Garnishment, pursuant to Rule 60.08 of the Rules of Civil Procedure, requiring that any third party (the “Garnishee”) that owes the debtor money shall send it to creditors instead. If the Garnishee fails to follow the court order, the creditor can obtain Judgment against the garnishee for the monies owing.
Rule 60.08 has an equitable component that gives courts the latitude to exercise flexibility if the debtor is attempting to hide behind a privately held corporation to avoid repayment to the creditor, the court may Order that the corporation and personal are indivisible, and therefore the corporation will be liable for the debts owing.
In initiating garnishment proceedings, the creditor and/or counsel should review all sources of cash flowing to the debtor and issue notices of garnishment to intercept same. If the debtor consistently takes steps to avoid enforcement, seek out the courts equitable jurisdiction to expand the scope of the enforcement mechanism against the debtor.