I previously blogged about the process for collecting delinquent association debt in County Court in both contested and uncontested matters. So once a Judgment is obtained against a delinquent owner, what are the options to obtain payment?
First and foremost, I encourage the association to continue to attempt to work out a settlement with a delinquent owner. If a settlement cannot be reached, the most common methods of collecting the amount owed are:
- Wage garnishment: If the employer for a delinquent owner can be located, the association is entitled to garnish a percentage of the owner’s wages until the judgment has been paid in full.
- Bank Garnishment: Some or all of the funds in a homeowner’s bank account may be garnished to satisfy the association debt. This includes most checking and savings accounts and, in some cases, investment accounts as well.
- Property Attachment: If a delinquent owner has personal property of significant value (motorcycles, boats, etc.), it can be attached and sold to satisfy the association debt.
What if an association is unable to locate any of the assets listed above? In that case, Interrogatories can be served on the delinquent owner. Interrogatories require a delinquent owner to disclose all of their assets and liabilities to the association. With this information in hand, the options above can be further explored.