How to Collect a Judgment in Florida - Division of Corporations (2024)

Judgment Liens

Definitions

  • Judgment Debtor: The losing party (the party that is ordered to pay a monetary amount by the court).
  • Judgment Creditor: The winning party (the party that is awarded a monetary amount by the court).
  • Levy: The process of seizing a judgment debtor’s property to pay the judgment debt.
    • In Florida, the sheriff’s department levies the property.
    • The sheriff’s department sells the levied property in order to pay the creditor.
  • Execution: The process of selling the seized property and paying the creditor.

I was awarded a court ordered judgment. Can I file a judgment lien with the Department of State?

  • Yes, Florida law allows a creditor to file a Judgment Lien Certificate with the Department of State.
  • The filing is not required, but it can be an important factor in recovering your debt.
    • Florida law requires the sheriff’s department to pay all judgment creditors based on the order their judgment liens were filed.
    • If someone else filed their judgment before you filed yours, the sheriff’s department must pay them before they pay you.

What types of property can and cannot be levied by the sheriff?

  • The sheriff’s department can seize:
    • Personal property: movable things (e.g., cars, horses, boats, furniture, jewelry) owned by the debtor.
    • Real property: land and buildings owned by the debtor.
    • Exemptions: An individual may choose to exempt one motor vehicle worth $1,000 or less; and one additional personal property item worth $1,000 or less. Corporations and partnerships do not have any exemptions.
  • The sheriff’s department cannot seize:
    • An individual’s home or homestead.
    • Any property that is leased or rented by the judgment debtor.

How do I get the sheriff to levy personal property?

  1. Locate the property.
    • The property must be located in Florida.
    • The sheriff’s department will not locate the property for you.
  2. Return to the Clerk of the Court that originally issued your judgment and ask for a Writ of Execution.
  3. Deliver the Writ to the sheriff’s department for the county where the debtor’s property is located.
  4. Provide the sheriff’s department with:
    • A deposit to cover their fees and costs.
    • Your written Instructions for Levy:
      • Describing the property; and
      • Telling the sheriff’s office where the property is located.

What happens once the personal property is levied?

  • The sheriff’s department will sell the property at a public auction.
    • The property will be sold to the highest bidder for cash in hand.
    • You may bid on the property.
  • For the sheriff’s department to sell the property, you must:
    • Search our records by the judgment debtor’s name for other judgment liens filed under that name.
    • Search our UCC records by the judgment debtor’s name for creditors that have filed UCC security interests under that name.
    • Notify all creditors found (if any) of the date, time and place of the sale.
    • Provide the sheriff’s department with a signed affidavit containing the information you found in your search for any judgment lien certificates against the debtor.
    • Advertise the sale in a local newspaper once all notices have been sent.

If the levied personal property is sold, how is the money distributed?

The sheriff’s department will distribute the money in the following order:

  1. The sheriff’s department will deduct their costs.
    • If the property sale covers those costs, you will get your deposit back.
  2. The sheriff pays you $500 for your costs, regardless of the amount you actually spent.
  3. If anyone else obtained a judgment lien against the debtor, the sheriff’s office will pay all of the creditors in the order their judgment liens were filed.
    • If the sheriff’s department disburses all of the money before getting to you, you will not receive any payment.
    • If there are no other judgment liens against the debtor, you will be paid first.
    • Remaining funds will be returned to the debtor.

How long is a judgment lien valid?

  • A judgment lien is valid for 5 years.
  • Florida law allows you to file a second judgment lien to extend the lien for an additional 5 years.

How do I get a judgment lien on the debtor’s real property?

File a certified copy of your judgment in the real estate records of the county in which the property is located.

  • The lien is in effect for 10 years, and it can be renewed for an additional ten years.
  • This type of lien is not filed with the Department of State.
How to Collect a Judgment in Florida - Division of Corporations (2024)

FAQs

How do I collect a Judgement from a business in Florida? ›

Return to the Clerk of the Court that originally issued your judgment and ask for a Writ of Execution. Deliver the Writ to the sheriff's department for the county where the debtor's property is located. Provide the sheriff's department with: A deposit to cover their fees and costs.

How do you satisfy a Judgement in Florida? ›

Whenever the entire amount due on a judgment, including interest, is paid in full, the holder of a judgment must execute a satisfaction of judgment and record the satisfaction in those counties where a certified copy of the judgment was previously recorded.

How to collect on a default judgement in Florida? ›

If the judgment debtor does not pay, you are entitled to get the sheriff to seize the judgment debtor's property. The seizing of property by the sheriff is called a levy. Once the sheriff has levied on the property, the sheriff will then sell it, and pay you out of the money the sheriff receives from the sale.

What is the judgment collection law in Florida? ›

In Florida, your judgment creditor uses the process of called execution and levy to seize your personal property, including (1) automobiles, (2) stock in private companies, and (3) valuable home possessions. The creditor can also execute against any property you gave to a third party, such as a friend or family member.

How do you satisfy the business judgment rule? ›

Under this standard, a court will uphold the decisions of a director as long as they are made (1) in good faith, (2) with the care that a reasonably prudent person would use, and (3) with the reasonable belief that the director is acting in the best interests of the corporation.

What is the business judgment rule? ›

"The business judgment rule is a presumption that in making a business decision, the directors of a corporation acted on an informed basis, in good faith and in the honest belief that the action taken was in the best interests of the company.

How do I satisfy a Judgement? ›

Pay directly to the creditor

Mail or deliver a check or money order to the Judgment Creditor. Make sure to keep proof of payment, such as your canceled check. Once the Judgment Creditor receives your payment, ask them to file the form Acknowledgment of Satisfaction of Judgment with the court within 14 days.

How is a Judgement satisfied? ›

A satisfaction of judgment is a document signed by a judgment creditor and generally filed with the court, indicating that a judgment has been paid in full.

What makes a judgment void in Florida? ›

In Florida, a “void judgment” is so defective that it is deemed never to have had legal force and effect, while a “voidable judgment” is a judgment that has been entered based upon some error in procedure that allows a party to have the judgment vacated, but the judgment has legal force and effect unless and until it ...

How long can a Judgement be collected in Florida? ›

Florida Statute of Limitations on a Judgment Lasts 20 Years | Haber law Haber Law.

How to enforce a final judgement in Florida? ›

You must request the writ of execution from the clerk of court that issued your Final Judgment by motion. Once you have obtained the writ of execution, you must give it to the sheriff of the county where the property you wish to levy is located along with written instructions called Instructions for Levy.

How long can a creditor collect on a Judgement in Florida? ›

The Florida Judgment is good for 20 years (although the lien and execution are shorter periods and must be renewed). Therefore, if the creditor does not collect on the judgment on the first try, the judgment can be revisited years down the road for further action.

How to enforce a judgment against a company? ›

If your judgment is against a business, you can record a lien with the Secretary of State's office. To do this, fill out a JL-1. Serve a copy of this form on the Judgment Debtor by first-class mail and complete a Proof of Service form SC-112a.

What are the new rules for summary judgment in Florida? ›

A party may move for summary judgment at any time after the expiration of 20 days from the commencement of the action or after service of a motion for summary judgment by the adverse party. The movant must serve the motion for summary judgment at least 40 days before the time fixed for the hearing.

What assets are exempt from judgements in Florida? ›

The most common Florida bankruptcy exemptions include:
  • Homestead. Homestead is the debtor's primary residence situated on up to 1/2 acre in a city and 160 contiguous acres in an unincorporated county.
  • Personal property exemptions. ...
  • Motor vehicles. ...
  • Wages. ...
  • Retirement accounts.

How do I sue a business in small claims court in Florida? ›

You, the plaintiff, must file a “Statement of Claim” form, available at your Clerk's office. This must be fully completed and signed to receive a pre-trial conference date. If your claim is based upon written documentation, attach a copy of the contract to the Statement of Claim form. You may file by mail or in person.

How does an offer of judgment work in Florida? ›

Offers of judgment in Florida personal injury cases are a way of resolving a Florida civil claim. Either side may formally approach the other party, in writing, and state that they are willing to resolve the case on specified terms. The other side has 30 days to accept the proposal.

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