Writ Of Execution Meaning Samples How It Works

Writ of Execution Meaning

In most legal cases, defendants willingly pay verdicts and are exempt from execution. But, some defendants ignore judgments forcing the plaintiff to use a writ of execution to enforce the verdict.

Key Takeaways

A write of execution is a legal order that allows the transfer of funds from an unwilling party to another after the court’s ruling. It’s only used in cases in which the debtor refuses to give the assets to the new rightful owner. Writ of executions are widely used after the bankruptcy of a company when there’s a debt, and the debtor lacks the resources to pay them. The period of time that a writ of execution is enforceable depends on the jurisdiction of the trial.

How Does Writ of Execution Work?

CreditorsCreditorsA creditor refers to a party involving an individual, institution, or the government that extends credit or lends goods, property, services, or money to another party known as a debtor. The credit made through a legal contract guarantees repayment within a specified period as mutually agreed upon by both parties. read more can enforce this court order after they win a trial against the defendant, creating a debt. After the judgment, the debtor often has some time to pay and will negotiate conditions. However, if that fails, the creditor can enforce a writ of execution. To start the process, the court official must first serve the writ. If the debtor does not take part with the assets willfully, the court is legally responsible for seizing assets. This is done to ensure payments promised in the court verdict.

Once the justice system seizes assets, they are auctioned to get the required value. These assets can include furniture, vehicles, home appliances, jewelry, or any other valuable possession. It is essential to note that a court can only take assets that are held within its own jurisdiction. It’s impossible to seize overseas assets without international treaties.

In most cases, the debtorDebtorA debtor is a borrower who is liable to pay a certain sum to a credit supplier such as a bank, credit card company or goods supplier. The borrower could be an individual like a home loan seeker or a corporate body borrowing funds for business expansion. read more decides to pay their dues. A writ of execution can cause personal issues and tarnish credit scores, so it is better to solve it in court. If the Judge sees that both parties are working in good faith to clear the debt, the writ can be nullified. A writ of execution should not be confused with the freezing of assets. While writs are enforced after the trial, freezing often happens during a trial. Freezing of assets is a pre-emptive action taken by the court in order to stop someone from hiding an asset away. Sometimes, defendants hide assets away from the court’s jurisdiction.

What Kind of Property can be Seized?

Not all types of property can be seized with a writ of execution. This is a list of assetsList Of AssetsThe asset consists of the resources owned or controlled by the corporation, individual, or the government due to past events to generate cash flows in the future. The list of assets includes operating assets, non-operating assets, current assets, non-current assets, physical assets, and intangible assets.read more that can be seized while enforcing this court order:

Cash from bank accounts (if they are within the jurisdiction of the justice system).Money directly from wages.Real estate belonging to the debtor.Other pieces of tangible assetsTangible AssetsTangible assets are assets with significant value and are available in physical form. It means any asset that can be touched and felt could be labeled a tangible one with a long-term valuation.read more. Examples include vehicles, art pieces, expensive watches, etc.

Other properties such as stakes in companies, stocks, and equitiesEquitiesEquity refers to investor’s ownership of a company representing the amount they would receive after liquidating assets and paying off the liabilities and debts. It is the difference between the assets and liabilities shown on a company’s balance sheet.read more, in general, cannot be taken with this order. Also, due to their decentralized nature, a writ of execution does not apply to cryptocurrenciesCryptocurrenciesCryptocurrency refers to a technology that acts as a medium for facilitating the conduct of different financial transactions which are safe and secure. It is one of the tradable digital forms of money, allowing the person to send or receive the money from the other party without any help of the third party service.read more such as BitcoinBitcoinBitcoin is a digital currency that came into existence in January 2009, speculated to be created by Satoshi Nakamato, whose true identity is yet to be authenticated. It provides lower transaction fees than the traditional online payment systems, is controlled by the decentralized authority, and is not like government-issued currencies.read more. Local laws may determine limits to how much money can be taken by this process.

So, a writ of execution can also be used to evict a tenant from a house if that person has not paid rent in a long time. In this case, the local law enforcement will remove the individual living in the house from the premises and return the property to the landlord.

How Long Does a Writ of Execution Last?

Before answering how long this legal order lasts, it is essential to understand that laws differ from place to place. For example, every state in the U. S. has its own rules. Consider the following examples to better understand the variations in writ enforcement.

In Texas, a writ of execution lasts for 10 years.California has a fairly short period for writs. They’re only valid for six months (180 days).The State of New York has a fairly large timeframe for writs: 20 years.In the United Kingdom, the process lasts for a total of six years.

As explained, the time varies drastically. Therefore it is important to consult the local legislation before enforcing such legal orders.

Samples of Writ of Execution

This is how a writ of execution actually looks like:

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They can be fairly straightforward for simpler cases but much more complex for cases like bankruptcies. To better understand how they work, consider the following example.

John goes out for a drink and ends up picking a bar fight with another man called Bob, injuring him. After a case in court, he needs to pay for his medical expenses: around $3,000. However, John refuses to pay, claiming that he doesn’t have any money at the time. If John does not pay Bob, Bob’s lawyer can sign a writ of execution and ask law enforcement to charge John anyway. As we’ve seen, the Judge can authorize the law to freeze John’s bank account and transfer the money directly. In case he does not have all the money, John’s possessions will be auctioned to pay for the damages caused.

In such a scenario, if John does not have enough money in a bank nor any valuable possessions, the Judge can also order John to share his future salary to pay Bob’s bills. Obviously, if John is unemployed and he does not have any assets, it’ll be highly difficult to collect money. However, the writ of execution will tarnish John’s credit, so nudging him solve it in court.