Do Writs of Execution Target Individual Assets or Classes of Assets?

The writ of execution is a tool available to judgment creditors attempting to extract payment from their debtors. It is also a court proceeding. When creditors ask for writs of execution, they are asking courts to order that debtor property be seized and sold for payment.

A question frequently asked by new judgment creditors is this: do writs of execution target individual assets or classes of assets? The answer is ‘both’, at least in most states.

I mention the states because each one regulates money judgments and judgment collection according to its own laws. What is applicable in one state might not apply in another. As a general rule though, writs of execution are pretty similar from coast-to-coast.

2 Types of Writs

The assets targeted in a writ of execution depend entirely on the language of the writ itself. Most states recognize two types of writs:

• General – A general writ of execution authorizes the local sheriff to seize any and all nonexempt personal property owned by a debtor. The sheriff and creditor are allowed to use their discretion in determining what to seize and what to leave alone.

• Special – A special writ of execution is more specific. It targets distinctly identified and named assets. For example, a writ might specifically name the debtor’s vacation property. Said property is the only asset the sheriff could seize under the authority of the special writ.

There are advantages and disadvantages to both types of writs. From the debtor’s perspective, that hardly matters. Instead, the debtor’s concern is losing potentially valuable property to pay off an outstanding judgment.

Only Nonexempt Property Is Impacted

Judgment Collectors, a Utah judgment collection agency based in Salt Lake City, points out that writs of execution only impact nonexempt property. What is nonexempt property? It is any personal property not covered by a state’s established exemptions. Perhaps the best way to understand this is to take a look at exempt property.

Most states exempt either a debtor’s personal residence entirely or a certain amount of its financial value. Let us go with a 100% exemption to illustrate the point. The exemption would dictate that a creditor cannot go after the debtor’s primary residence at all. The debtor’s home is completely out of bounds.

Many states also consider the debtor’s primary vehicle exempt as well. The thinking here is that the debtor needs his vehicle to get to and from work every day. Taking the vehicle would impair his ability to earn a living.

Other examples of exempt assets include Social Security benefits, disability benefits, retirement accounts, and certain types of investments. Comparatively speaking, however, the number of exempt assets a debtor owns is small. Most of his personal property would be nonexempt.

Judgment Liens on Exempt Property

Although exempt property cannot be seized and sold under a writ of execution, it could still be useful to judgment collection. Some states allow judgment liens against exempt property. A judgment lien works the same way as a bank or construction lien.

A judgment lien establishes a creditor’s financial interest in the debtor’s property. Should the debtor choose to transfer, sell, or otherwise dispose of the property in question, he will have to either pay his debt or convince the new owner to assume it in the transaction – if state law allows it, of course.

Writs of execution are generally considered a collection tool of last resort. Creditors would rather their debtors pay up without them having to go through property seizure and sale. But when it is the only option left on the table, it works.