What Is Prejudgment Relief?

What Is Prejudgment Relief?

On Behalf of | Sep 27, 2019 | Commercial Collection

Prejudgment relief is also known as prejudgment remedies. It provides an opportunity for creditors to get paid on a past due account before a judgment is granted by the court. Prejudgment relief must be applied for to the court, and we can do it for you. A skilled collections lawyer can explain further.

What Must the Creditor Prove To Obtain Ex Parte Relief?

To have prejudgment relief granted by the court, the creditor must be able to prove:

  • That the debtor is going to leave the area and that their leaving the area will make it difficult for the creditor to collect on the debt.
  • That the debtor has assets they will either hide or dispose of so that they don’t have the means to pay the debt that is owed.
  • That the debtor has the ability to convert property into money or some other valuable compensation that could be used to pay the debt.

Prejudgment Relief Is Temporary

It’s critical for creditors to understand that prejudgment relief, if granted, is only temporary. Its purpose is to keep the debtor from getting rid of their property until a judgment is entered on the matter. Once a judgment is entered, the creditor must then look to enforce the judgment.

To learn more about prejudgment relief, contact our law office today.