After a judgment is issued, enforcement can be a challenge where all too often, losing parties attempt to avoid payment. A court-appointed receiver is one of the best tools that you have at your disposal when you or someone you represent is owed money on a judgment from an uncooperative party. Receivers can enforce assignment orders to take over certain rights of judgment debtors so that the judgment creditors can get what they are owed.
What Are The Most Common Rights of a Post-Judgment Receiver?
Some of the most common rights that a post-judgment receiver assumes through assignment orders include:
- Collecting rent from tenants
- Collecting disbursements from an employer
- Collecting sales commissions and royalties
- Overseeing accounts receivable of a business
- Receiving installment payments on promissory notes or other judgments
What Is The Role of a Court-Appointed Receiver with Assignment Orders?
A receiver may be appointed by a court following entry of a judgment and after it is established the judgment creditor is not cooperative. The receiver may be empowered to take control of assets or rights to assets of the judgment debtor to satisfy the judgment creditor’s judgment.
The goal is to liquidate assets, collect payments, discover any hidden funds, and ensure that the judgment is satisfied pursuant to the court’s orders.
Additionally:
- An assignment order may allow the receiver to take possession of both assets and income streams.
- The receiver can direct banks, customers, clients, and employers to turn over funds that would have gone to the judgment debtor and instead send them to the receiver.
What are Assignment Orders?
An assignment order is a legal directive issued by a court that assigns certain rights and/or assets of a judgment debtor to a judgment creditor. The purpose of an assignment order is to facilitate the collection of the judgment debt by directing a third party to transfer funds or assets directly to the judgment creditor (or receiver if one is appointed).
The Process of Obtaining an Assignment Order
To obtain an assignment order, a judgment creditor must file a motion with the court that details the assets and/or revenue to be assigned and explains how those assets or revenue are related to the judgment debtor. This motion typically includes:
- A description of the judgment, including the amount owed and any accrued interest.
- Evidence demonstrating the debtor’s interests in particular income streams, accounts, or assets.
- A proposed order specifying the rights to be assigned and the third parties who will be directed to make payments to the creditor or receiver.
- Legal authority supporting the court’s power to issue the requested assignment order.
The court will hold a hearing and allow the judgment debtor to respond, present evidence, or argue against the scope of the requested order. In some cases, third parties who will be subject to the order may also be notified or heard, particularly if there are questions regarding their obligations or the existence of competing claims. If the court grants the motion, it will issue an assignment order that clearly sets out:
- The specific rights, payments, or property interests being assigned.
- The parties who must comply with the order and where payments must be sent.
- Any limitations, priorities, or conditions on the assignment (such as caps on amounts or duration).
- Whether the receiver is authorized to enforce the order, communicate with third parties, and take further steps to collect.
Once in place, the assignment order becomes a key enforcement tool. When combined with a receivership, it allows the receiver to methodically collect on the assigned rights, provide regular reporting to the court and parties, and recommend further actions if additional enforcement measures are needed.
Post-Judgment Receivership Services
Post-judgment receivers, using assignment orders and many other tools, can resolve situations that have previously seemed unresolvable. Where years of collection efforts have yielded little progress, a receivership can bring coordination, accountability, and creativity to the enforcement process.
The receiver can:
- Identify and secure assets the debtor has attempted to conceal or transfer.
- Capture ongoing income through assignment orders and related directives. - Work with banks, employers, tenants, customers, and other third parties to ensure compliance.
- Provide detailed, court-ready accounting of all funds collected and disbursed.
- Recommend additional legal remedies when needed to fully satisfy the judgment.
For judgment creditors and their counsel, partnering with an experienced post-judgment receiver like Griswold Receivers can significantly increase the likelihood of meaningful recovery while reducing the burden of day-to-day enforcement efforts. To learn more about post-judgment receiverships, including how assignment orders and other receivership tools may apply to your specific case, let’s talk. Contact us to find out more about how our team can serve you or the clients you represent in the process of ensuring prompt and effective satisfaction of judgments.
