STEPS TO COLLECT A JUDGEMENT IN MARYLAND

This comprehensive guide provides an in-depth look at the steps required to collect or enforce a judgment in Maryland, based on the Maryland Rules. It includes definitions, key term understandings, step-by-step instructions for each enforcement mechanism, and a practical guide on what to expect during the process.

Key Definitions and Terms

Judgment

A judgment is a court's final determination of the rights and obligations of the parties in a case.

Judgment Creditor

The party who has won the judgment and is entitled to collect the money awarded by the court.

Judgment Debtor

The party who owes the money awarded by the court in the judgment.

Lien

A legal right or interest that a creditor has in the debtor's property, lasting until the debt obligation is satisfied.

Writ of Execution

A court order authorizing the sheriff to enforce the judgment, typically by seizing the debtor's property.

Garnishment

A legal process that allows a creditor to collect a portion of the debtor's wages or bank accounts directly from the employer or financial institution.

Levy

The legal seizure of property to satisfy a judgment.

Overview of the Judgment Collection Process

Initial Steps

1. Review the Judgment: Ensure the judgment is final and no appeals or stays are in place.

2. Identify Debtor’s Assets: Gather information about the debtor’s real and personal property, bank accounts, wages, and other assets.

Steps to Collect Judgment

1. Lien on Property

Definition

A lien is a legal claim against the debtor's property as security for the debt owed under the judgment.

Process

1. Notice of Lien Filing:

   • If the judgment debtor owns real property, file a notice of lien in the circuit court for the jurisdiction where the property is located. (MD. RULE 3-621; REAL PROP. § 3-102)

   • In Baltimore City, a money judgment constitutes a lien from the date of entry if entered in Baltimore City or from the date of recording if received from another county. (MD. RULE 3-621(b))

2. Recording the Lien:

   • Outside Baltimore City, request a certified copy of the notice of judgment lien from the District Court where the judgment was entered. This certified copy must be transmitted to the circuit court for the county where the property is located within 24 hours. (MD. RULE 3-621(c)(1))

3. Details Required in Notice of Lien:

   • Names of the parties (judgment creditor as plaintiff, judgment debtor as defendant)

   • Court and docket reference

   • Date and amount of judgment (MD. RULE 3-621(c)(2))

4. Evidence for Writ of Execution:

   • Ensure evidence that a notice of lien has been recorded in the circuit court where the creditor seeks to levy the property. (MD. RULE 3-641)

2. Discovery in Aid of Enforcement

a. Interrogatories

1. Purpose:

   • Obtain information to aid in the collection of a money judgment by serving up to 15 interrogatories upon the judgment debtor. (MD. RULE 3-421, 3-633(a))

2. Procedure:

   • If the debtor fails to respond, file a Motion and Order Compelling Answers to Interrogatories in Aid of Execution (Form DC/CV 30).

b. Examination before a Judge or Examiner

1. Request:

   • File a request for an examination before a judge or an examiner 30 days after the entry of the money judgment. (MD. RULE 3-633(b))

2. Court Order:

   • The court will order the debtor to appear for examination under oath. The examination can include the judgment debtor or any person with knowledge of the debtor's property or assets.

3. Writ of Execution

Definition

A writ of execution directs the sheriff to levy against the debtor’s property.

a. Real Property

1. Request:

   • Request the clerk to issue a writ of execution if a notice of lien is recorded. (MD. RULE 3-641(a))

2. Instructions to Sheriff:

   • Include the debtor’s last known address, amount owed, property location, and access instructions.

b. Personal Property

1. Procedure:

   • Similar to real property but includes instructions on potential removal due to the mobile nature of personal property. (MD. RULE 3-642)

4. Garnishment

a. Wages

1. Request:

   • File a request for a writ of garnishment in the same action where the judgment was obtained. (MD. RULE 3-646(b))

2. Writ Content:

   • Include the action caption, amount owed, debtor’s address, and garnishee’s address.

3. Service:

   • Serve the writ to the garnishee (employer) and send a copy to the debtor. The garnishee must answer within 30 days. (MD. RULE 3-646(d), 3-646(e))

b. Bank Accounts and Other Intangible Property

1. Request:

   • File Form DC/CV 60 for garnishment of property other than wages.

2. Writ Content:

   • Similar to wage garnishment and includes notices about state and federal exemptions.

5. Disposition of Property Subject to Levy/Garnishment

a. Release of Property from Levy

1. Conditions for Release:

   • Judgment satisfied, bond posted, judgment vacated or expired, property exempt, creditor’s non-compliance, sufficient property remaining under levy, levy existence for 120 days without sale, etc. (MD. RULE 3-643)

2. Motion:

   • File a motion or request for property release in the District Court.

b. Sale of Tangible Property Under Levy

1. Sheriff's Sale:

   • Upon request, the sheriff sells the debtor’s interest in the property to satisfy the judgment. (MD. RULE 3-644)

2. Notice:

   • Public sale notice, distribution of proceeds, and satisfaction of enforcement costs. (MD. RULE 3-644(b), 3-644(f))

c. Exemptions from Execution

1. Statutory Exemptions:

   • Refer to CTS. & JUD. PROC. § 11-504 for exemptions. The debtor must claim these within 30 days of the creditor's action to garnish or attach property. (MD. RULE 3-645, 3-645.1, 3-646)

Detailed Process Flow and What to Expect

Step-by-Step Process Flow

1. Review the Judgment:

   • Verify the finality of the judgment and check for any pending appeals or stays.

2. Identify Debtor’s Assets:

   • Investigate and document all known assets of the debtor, including real estate, personal property, bank accounts, and employment.

3. Choose the Enforcement Method:

   • Decide whether to file a lien, seek discovery in aid of enforcement, request a writ of execution, or pursue garnishment based on the available assets.

Expectations and Practical Tips

1. Lien on Property:

   • Expect the process to involve multiple filings and communications with the circuit court. Ensure all details in the notice of lien are accurate and complete.

   • Tip: Maintain a record of all filings and transmittals to avoid delays and ensure compliance with MD. RULE 3-621.

2. Discovery in Aid of Enforcement:

   • Interrogatories and examinations can provide detailed information about the debtor’s assets. Be prepared for potential non-compliance and the need to file motions to compel answers.

   • Tip: Utilize Form DC/CV 30 for compelling answers efficiently and follow up promptly on any non-responses.

3. Writ of Execution:

   • The sheriff will need clear instructions for executing the writ. Ensure that the notice of lien is recorded and provide detailed instructions to the sheriff regarding property access.

   • Tip: Double-check all documentation before submitting the request to avoid any delays in the process.

4. Garnishment:

   • Wages and bank accounts are common targets for garnishment. Be prepared for potential objections or defenses from the debtor or garnishee.

   • Tip: Use Form DC/CV 65 for wage garnishment and Form DC/CV 60 for other property garnishment to ensure compliance with MD. RULE 3-646 and 3-645.

5. Disposition of Property:

   • When dealing with the sale of levied property, coordinate closely with the sheriff’s office and be aware of the timelines and requirements for public sales.

   • Tip: File motions for release of property promptly when applicable and request hearings if necessary to expedite the process.

Common Challenges and Solutions

1. Non-Responsive Debtor:

   • Challenge: Debtors may ignore interrogatories or court orders.

   • Solution: File motions to compel responses and request court orders for examination under oath.

2. Asset Concealment:

   • Challenge: Debtors may hide assets to avoid collection.

   • Solution: Use discovery tools effectively and request examinations of third parties with knowledge of the debtor’s assets.

3. Complex Filings:

   • Challenge: The process involves detailed and precise filings.

   • Solution: Follow the Maryland Rules meticulously and use standard forms where applicable to ensure accuracy.

4. Garnishee Non-Compliance:

   • Challenge: Garnishees may fail to comply with garnishment orders.

   • Solution: File motions to hold the garnishee in contempt and request attorney fees and costs for non-compliance.

Practical Tips and Best Practices

• Documentation: Keep thorough records of all filings, communications, and court orders to track the progress and ensure compliance.

• Follow-Up: Regularly follow up on filings and requests to prevent delays and ensure timely enforcement.

• Legal Advice: Seek legal advice when dealing with complex cases or unfamiliar procedures to ensure proper handling and avoid errors.

• Updates: Stay updated on changes to the Maryland Rules and relevant statutes to ensure compliance with the latest requirements.