Attorneys Stephen Korshak and Lee Karina Dani

Why domesticating a debt can be the best solution for creditors

On Behalf of | Nov 21, 2024 | Collections |

Getting people to pay what they owe isn’t always easy. Most individuals who take on debt are financially responsible and make reasonable efforts to fulfill their financial obligations. Unfortunately, not everyone is assertive about fulfilling their financial obligations.

Some people even go to great lengths to try to avoid their financial responsibilities. Creditors sometimes have to take legal action to get a debtor to pay what they owe. A successful lawsuit related to debt can result in a court judgment in favor of the creditor. Even when subject to a court order, some people may try to avoid their responsibilities.

For example, they might leave the state. By changing their address and getting a job elsewhere, they may hope to avoid wage garnishment and other attempts to enforce a debt-related judgment. Creditors who know that a debtor has moved to Florida may find that domestication of the prior judgment is a better solution than engaging in alternative debt collection efforts or litigating again.

How domestication works

Domestication involves asking the Florida courts to recognize the validity of a judgment issued in another state. In a domestication scenario, the creditor asking for the courts to assist them has already successfully litigated the debt in another jurisdiction.

They must present proof of the pre-existing judgment to the Florida courts and file appropriate paperwork for the domestication process. Should the courts agree to domesticate the judgment, the creditor can engage in the same collection activities they might have pursued in the original state if the debtor had not fled.

Why domestication is helpful

Domestication does not necessarily require the presence or even the knowledge of the debtor. Creditors do not have to serve them or worry about them trying to avoid responsibility again.

A successful domestication allows a creditor to garnish wages and engage in other collection activities in Florida after a debtor relocates to the Sunshine State to avoid responsibility for a debt. Domestication is faster than litigating a second time in most cases. It also provides an opportunity to intercept wages through garnishment or place a lien against valuable property before the debtor can try to circumvent collection efforts again.

Reviewing an initial judgment with a skilled legal team can help creditors determine if judgment domestication might be an option for holding someone financially accountable for a debt they had tried to avoid paying. Creditors that look into every debt collection option can more effectively hold people responsible for debts they have tried to avoid.