Writ of Execution

A writ of execution is a legal order to seize the assets of someone who refuses to transfer them. The newly claimed possession remains under judicial custody until transferred to the rightful new owner.

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.

• 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.

Creditors 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 debtor 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.

Not all types of property can be seized with a writ of execution. This is a list of assets 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 assets. Examples include vehicles, art pieces, expensive watches, etc.

Other properties such as stakes in companies, stocks, and equities, in general, cannot be taken with this order. Also, due to their decentralized nature, a writ of execution does not apply to cryptocurrencies such as Bitcoin. 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.

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.

This is how a writ of execution actually looks like:

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.

This has been a Guide to what a Writ of Execution is. Here we discuss how it works using samples. You may learn more about financing from the following articles –

• Smart Contracts
• Non-Compete Agreement
• Non-Disclosure Agreement