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Domestication of judgments.(selected topic)

Business Credit

| May 01, 2008 | Knowles, Kavita | COPYRIGHT 2008 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

You went to court and got a judgment against your debtor. That should be it, right? If the debtor does not voluntarily pay the judgment, you will still have to execute on the judgment through a garnishment, levy or other attachment of the debtor's assets. What if your debtor is in another state or has assets in another state? You may need to domesticate your judgment into the state where the debtor resides or has assets.

Domesticating a judgment is not a difficult process, especially if you have enough information on your debtor and are aware of the requirements of the jurisdiction. Once you have gone through the process of domesticating your judgment into the correct state, your judgment will have the same effect as any other judgment in that jurisdiction.

How to Domesticate Judgments

Some states require creditors to essentially "start over" and file a whole new lawsuit in the new state in which they wish to domesticate their judgment. However, most states have adopted the Uniform Enforcement of Foreign Judgments Act (UEFJA). UEFJA allows the creditor to obtain an effective judgment in a different state by just filing proof of their judgment, providing the last known address of the debtor and creditor and paying the correct filing fees. This is quicker and more cost effective than filing a separate action. Most states, including the District of Columbia and the U.S. Virgin Islands, have adopted UEFJA; only California, Indiana, Massachusetts, North Carolina and Vermont have not. Each jurisdiction may have different requirements as to the actual papers that are filed. A sample of the Maryland Affidavit of Name and Address to Register Foreign Judgment appears below. Samples of Virginia's Praecipe Requesting Registration of Foreign Judgment and Affidavit of Name and Address to Register Foreign Judgment appear on the following page.

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