Most parties with financial obligations to others are diligent about fulfilling their responsibilities. Even if doing so takes years, they make every reasonable effort to repay their creditors in full. Unfortunately, some debtors do not care about the impact they may have on their creditors.
In some cases, attempts to avoid collection activity may prompt drastic measures, including relocation to another state. Creditors who have successfully engaged in collection activity elsewhere by going to civil court may eventually track a debtor to Massachusetts.
If that happens, they may question what options they have for holding the debtor accountable. Massachusetts law allows for the domestication of foreign judgments, which can streamline legal proceedings for creditors.
What is a foreign judgment?
As many people can readily infer, a foreign judgment is a court ruling from another jurisdiction. The courts can recognize and enforce judgments issued by courts in other locations.
Domestication procedures are possible with judgments issued in certain other countries or in other states within the United States of America. When creditors have successfully litigated and secured a judgment that may allow them to pursue more aggressive collection efforts on a valid debt, the courts can issue a judgment.
The creditor may then be able to garnish the debtor’s wages, place a lien against their property or take other aggressive collection steps. However, court orders typically only apply to the jurisdiction in which they originate. Creditors pursuing collection activity against someone now residing in Massachusetts may be able to domesticate the prior judgment.
What happens during domestication?
Domestication is different from relitigating the collection issue. The creditor does not have to establish the validity of the debt or complete the same complicated process required for the initial judgment.
Instead, they file the appropriate paperwork and ask the Massachusetts courts to recognize the validity of the judgment issued elsewhere. The creditor can then take appropriate steps to collect the debt. Domestication is often faster and more cost-effective than other collection options. It reduces how long creditors have to wait to pursue repayment for a debt.
For many businesses, domesticating foreign judgments is one of the best options available for addressing outstanding debts. Reviewing prior collection efforts and current circumstances with a skilled legal team can help creditors determine if domesticating a judgment is the best path forward.
