As a business owner, you may think that you have few options when trying to collect from a debtor who has moved to Florida. If you secured the original judgment in your home state, the debtor may move to Florida to avoid settling their financial obligations.
While collecting out-of-state judgments in Florida can be complex, it is certainly possible, especially when you receive the appropriate legal guidance. Here are some important factors to consider.
The domestication of foreign judgments
The Florida Enforcement of Foreign Judgement Act allows business owners to domesticate judgments from other states. This legislation allows those with uncollected debts to obtain a writ of execution in Florida. What this means is that the collecting party can continue to take the steps that they had intended to before the debtor moved to Florida from another state.
It’s important to note that this process is separate from simply filing a separate suit in Florida and pursuing a judgment that way. Doing this would generally be much more time-consuming and expensive.
Domesticating a foreign judgment can also be a much safer way to collect outstanding debts. If the debtor has already moved to Florida to avoid paying, then they are likely to simply leave Florida and go to another state to avoid paying again. Once the judgment has been domesticated, the legal process can usually be set in motion quite quickly. You may be able to secure payment before the debtor is able to leave again.
As you can see, the process of domesticating out-of-state judgments can be complex. It is essential that you have someone on your side who understands the intricacies of the law. We help out-of-state business owners looking to enforce judgments created outside of Florida. Contact us to schedule a telephone consultation.