Our Clients Ask Us: Payment Plans & Execution Of Judgments

Q: We had a request for a payment plan from one of our owners who we currently have a judgment against. Can we accept a payment plan then still pursue a wage garnishment or bank attachment?

ANSWER: NO. The whole purpose of a payment plan is for the Association to get their money in increments that the owner can afford. If the Association wants to pursue court action, then it should not agree to a payment plan. Often times, we will require that the owner provide proof of employment when he/she owes a large balance, so we are assured that there is an adequate income stream to support the payment plan.

However, if the owner defaults on the payment plan, pursuing collection through the court systems then becomes fair game. The owner should be notified that they are in default of the payment plan and that the Association intends on pursuing collection.

The Association can then pursue action such as wage garnishments, debtors’ exams and bank attachments if there is a judgment in place. If there is not an existing judgment, then Association then has leave to file an action in Court provided that there are not any bankruptcy stays in place.

Payment plans are mutually beneficial for both parties, but keep in mind that you must forego collection attempts once the Association and the owner have entered into the repayment plan.

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