Winning a breach of contract lawsuit is a hard-earned victory that validates your claim and acknowledges the harm done by the other party. However, that court judgement is not a direct deposit and is simply a right to collect.
In Minnesota, turning that piece of paper into actual payment usually requires a swift enforcement strategy. The court will not chase the debtor for you, and delays can give them time to take steps that make collection harder or even impossible. This post explores how to enforce a breach of contract judgment so you can make your win count.
Obtaining vs. enforcing a judgment
A judgment essentially gives the creditor the legal right to pursue assets, but it does not trigger an automatic payment. Even so, Minnesota has several legal tools available to help you collect what the other party owes you, including:
- Bank levies: Freezing and seizing funds directly from the debtor’s bank accounts
- Property liens: Attaching the debt to real estate the debtor owns to prevent a sale or refinance without payment
- Wage garnishments: Directing a portion of the debtor’s earnings to satisfy the judgment
- Post-judgment interrogatories: Using court-ordered questioning to force the debtor to reveal the location of their financial accounts and assets
These collection tools can be powerful, but you must use them in compliance with Minnesota law and court procedures.
The danger of waiting
The Minnesota court system does not act as a collection agency. Waiting too long to collect payment can give the debtor time to do the following:
- Transfer funds to offshore or hidden accounts
- Liquidate or hide physical assets
- File for bankruptcy
In many cases, debtors often begin protecting their assets the moment the court enters a judgment. It is vital to initiate collection efforts immediately to maximize your chances of recovery before the debtor stalls the process or extinguishes the debt entirely.
Aggressive recovery strategies
When standard collection efforts fall short, a dedicated legal team can use more advanced recovery tools, including:
- Issuing subpoenas to banks or third parties to uncover hidden records
- Pursuing personal liability if the debtor is hiding behind a shell company
- Identifying non-exempt assets for seizure and sale at a sheriff’s auction
These strategies can make a critical difference in enforcing a breach of contract judgement when a debtor is trying to hide assets or avoid payment.
Preventing your win from going to waste
Receiving a favorable judgment is only valuable if it is collected. The Perry & Perry PLLP team can begin the post-judgment enforcement process to help ensure you receive the compensation the court awarded you.