Every state has slightly different laws. While federal regulations apply in every jurisdiction, many court cases rely on state courts and therefore state statutes. Creditors frustrated by a debtor’s refusal to pay what they owe may eventually choose to take legal action.
Debt-related litigation can result in financial compensation for creditors. The courts can issue a judgment in favor of a creditor when a debtor has fallen behind on their financial obligations. A judgment may provide an opportunity to garnish wages or place a lien against valuable property.
Some people attempting to avoid aggressive debt collection efforts may leave the state to protect their resources. People sometimes assume that they can avoid the enforcement of a judgment by relocating. If a creditor tracks a debtor to a different state, they can potentially pursue the domestication of a prior judgment.
What is debt domestication?
As previously mentioned, laws are different in every state, and courts typically only rule in cases where they have jurisdiction. A creditor who successfully sued a debtor in Georgia usually can only enforce their judgment in the state of Georgia. If the debtor relocates to Florida, the Georgia judgment becomes ineffective.
Domestication is a way for the Florida courts to validate and uphold a judgment issued in another jurisdiction. The creditor provides information about the original debt and the judgment issued in another state. The courts review the documentation provided and can approve the domestication of the foreign judgment.
By doing so, the Florida state courts effectively make the judgment issued in another state enforceable in Florida. Creditors can proceed with attempts to place liens against property or garnish wages without meeting to litigate the debt a second time.
Why do creditors choose domestication?
Debt domestication is often faster and therefore more cost-effective than pursuing a second debt-related lawsuit in a new jurisdiction. The quicker that creditors domesticate foreign judgments, the sooner they may be able to begin collecting funds from the debtor who tried to flee their financial responsibility.
Discussing prior collection efforts and an existing judgment can help creditors determine if judgment domestication is an option given their circumstances. An attorney can often help frustrated creditors hold those living in Florida accountable, even if their debts originated in another state.
