Supplementary proceedings are the court process you use to collect a money judgment when the debtor won’t pay voluntarily. You file a motion asking the court to order the debtor to appear and answer questions under oath about their finances, and then you use what you learn to get further orders that seize bank accounts, garnish wages, force turnover of property, or sell real estate. The judgment itself is just a piece of paper. These proceedings are the mechanism that turns it into money.
The federal framework sits in Rule 69 of the Federal Rules of Civil Procedure, which directs federal courts to follow the execution procedures of the state where the court sits.1Legal Information Institute. Federal Rules of Civil Procedure Rule 69 – Execution Every state has its own supplementary proceedings statute, and the forms, exemptions, and seizure mechanics vary. The core moves are the same everywhere.
What to Have Ready Before You File
Small errors in the opening paperwork cause months of delay, so get the basics exact. You need the debtor’s full legal name as it appears on the judgment, the case number, the issuing court, and the date the judgment was entered. You also need to know the current balance, which is the original award plus accrued post-judgment interest.
In federal court, post-judgment interest runs at the weekly average one-year constant maturity Treasury yield published by the Federal Reserve.2Office of the Law Revision Counsel. 28 USC 1961 – Interest In early 2026 that rate has been hovering around 3.5% to 3.7%.3United States Courts. Post-Judgment Interest Rate State courts generally set their own rates by statute, and those can be higher or lower. Confirm the rate your court uses before you calculate what the debtor owes.
Typical filings include a motion for supplementary proceedings and a proposed order requiring the debtor to appear for examination. Most clerks’ offices and court websites publish standard forms. A judge has to sign the order before you can serve it. An incorrect case number or wrong judgment date hands the debtor an easy procedural challenge.
Finding Assets Before the Hearing
You don’t need to walk in blind. County recorder offices show real estate ownership and transfers. Secretary of state records show corporate filings, LLC registrations, and UCC financing statements that reveal secured debts. Court records from other cases can surface additional judgments, lawsuits, or divorce filings that illuminate the debtor’s finances. Vehicle records are available through motor vehicle agencies, though access rules vary. A debtor confronted at the examination with a rental property they failed to mention is much less likely to lie about the next question.
Serving the Order and Taking the Examination
Once the judge signs the order, you have to formally serve it on the debtor. Hire a private process server or arrange for the local sheriff. Service generally costs $20 to $100 for a straightforward delivery, more for rush jobs or hard-to-find debtors. File proof of service with the court afterward, or the debtor can later claim they never got notice.
The examination is conducted under oath, usually in a courtroom or conference room. You or your attorney can ask about bank accounts, employment, tax returns, real estate, vehicles, business interests, debts others owe the debtor, and any recent transfers of property. Courts give judgment creditors wide latitude here because the whole point of the proceeding is uncovering what hasn’t been voluntarily disclosed.
If the debtor doesn’t appear, most courts will issue a bench warrant. Refusing to answer or lying under oath can bring civil contempt findings carrying fines or jail time until the debtor cooperates. Debtors who treat the hearing as optional tend to learn otherwise quickly.
Subpoenaing Third Parties
You aren’t limited to questioning the debtor. Rule 45 of the Federal Rules of Civil Procedure lets you subpoena banks, employers, business partners, and anyone else likely to have information about the debtor’s assets.4Legal Information Institute. Federal Rules of Civil Procedure Rule 45 – Subpoena A subpoena can compel document production or testimony. It must be served by someone at least 18 and not a party to the case, and the recipient can only be required to appear within 100 miles of where they live or work. If you’re demanding documents, you also have to notify the debtor’s attorney before serving the third party.
Third-party subpoenas matter most when you suspect the debtor is moving money through a relative’s account or running income through a business entity. Banks will produce account records on a proper subpoena, and employers will confirm compensation. Much of the real investigative work happens here.
Court Orders That Actually Collect
Once the examination reveals what the debtor has, you go back to court for specific orders tailored to each kind of asset.
Turnover Orders
A turnover order directs the debtor to physically hand over specific property: cash, stock certificates, valuable personal items, business records. The sheriff can enforce it with or without the debtor’s cooperation. Refusing to comply is civil contempt and can mean jail time until the debtor produces what the court ordered.
Bank Levies
Orders to banks are among the most effective tools. The court directs the bank to freeze the debtor’s accounts and transfer the non-exempt balance to you. A bank served with a valid garnishment order must perform a two-month lookback for federal benefit deposits (described below) and protect that amount, but anything beyond that can be seized.5eCFR. 31 CFR Part 212 – Garnishment of Accounts Containing Federal Benefit Payments Bank levies work because they capture whatever’s in the account at the moment the order arrives, usually without warning to the debtor.
Wage Garnishment
An order to the debtor’s employer diverts part of each paycheck to you until the judgment is paid. Federal law caps garnishment for ordinary consumer debts at 25% of weekly disposable earnings, or the amount those earnings exceed 30 times the federal minimum wage, whichever produces the smaller garnishment.6Office of the Law Revision Counsel. 15 USC 1673 – Restriction on Garnishment With the federal minimum wage at $7.25, a debtor earning $217.50 or less in disposable weekly earnings is fully protected.7U.S. Department of Labor. State Minimum Wage Laws Many states cap garnishment more tightly than the federal floor, so check local law before you project recovery.
Installment Payment Orders
When the debtor has steady income but little in the way of seizable assets, courts can set a monthly payment amount based on disposable income and reasonable living expenses. These orders function as court-supervised payment plans. Violating one is contempt, which keeps most debtors paying.
Forced Sale of Real Estate and Personal Property
If the debtor has equity in real estate or personal property beyond applicable exemptions, the court can order a sale. Federal law requires real property sold under a court order to be sold at public auction, typically at the courthouse of the county where the property sits.8Office of the Law Revision Counsel. 28 USC Chapter 127 – Executions and Judicial Sales Personal property follows the same procedure unless the court directs otherwise. Forced sales rarely bring full market value, so practical recovery is often less than the paper equity suggests.
What You Cannot Reach
Not everything the debtor owns is available. Every state has its own exemption list, with varying categories and dollar limits. Common exemptions cover a portion of home equity, one vehicle up to a certain value, basic household furnishings, tools of the trade, and a limited amount of jewelry. Some states are far more generous than others.
Retirement Accounts
Plans governed by ERISA, including most employer-sponsored 401(k) plans and pensions, are broadly shielded from judgment creditors. Federal law bars assignment or alienation of plan benefits, which generally prevents creditor attachment.9Office of the Law Revision Counsel. 29 USC 1056 – Form and Payment of Benefits The Department of Labor confirms that creditors cannot make a claim against retirement plan funds, and that protection holds even if the employer goes bankrupt.10U.S. Department of Labor. FAQs about Retirement Plans and ERISA An IRA keeps that protection if the debtor rolls a 401(k) balance into it. The main exception is a qualified domestic relations order in a divorce or support case.
Federal Benefits
Social Security, Social Security Disability, VA benefits, and other federal benefit payments get special treatment. When a bank receives a garnishment order, it must look back two months at federal benefits deposited by direct deposit and leave that amount accessible.5eCFR. 31 CFR Part 212 – Garnishment of Accounts Containing Federal Benefit Payments The automatic protection only applies to direct deposits. If the debtor deposits paper benefit checks, the account can be frozen in full, and the debtor has to go to court to prove the money came from protected sources.11Consumer Financial Protection Bureau. Can a Debt Collector Take My Federal Benefits, Like Social Security or VA Payments? Supplemental Security Income is even more protected and cannot be garnished at all, even for government debts or child support.
When the Debtor Has Moved Assets Out of Reach
Debtors who see a judgment coming sometimes transfer property to a spouse, a relative, or a newly formed LLC. Every state has adopted some version of the Uniform Voidable Transactions Act (formerly the Uniform Fraudulent Transfer Act), which lets creditors challenge the transfer and claw the property back.
Courts weigh a familiar set of warning signs, known as badges of fraud. No single factor is conclusive, but several appearing together tell the story:
- Transfer to an insider such as a spouse, family member, or business partner.
- The debtor kept using or controlling the property after supposedly giving it away.
- The transfer was concealed rather than disclosed openly.
- The transfer happened shortly before or after the debtor was sued or a large debt was incurred.
- The debtor transferred substantially all of their assets.
- The debtor received far less than the property was worth, or nothing at all.
- The debtor was already insolvent or became insolvent immediately after the transfer.
If a court finds the transfer fraudulent, it can void the transfer and bring the property back into the collection pool. In bankruptcy, a trustee can avoid transfers made within two years before the filing, and up to ten years for self-settled trusts where the debtor is also the beneficiary.12Office of the Law Revision Counsel. 11 USC 548 – Fraudulent Transfers and Obligations Outside bankruptcy, state statutes set their own limitation periods, and those deadlines vary.
When the Debtor Really Has Nothing
The examination sometimes reveals that the debtor’s only income is from exempt sources like Social Security and their only assets fit within state exemption limits. This is what lawyers call being judgment-proof. The judgment doesn’t disappear. There’s just no legal way to collect at the moment.
The condition is usually temporary. If the debtor takes a new job, inherits money, buys property, or otherwise improves their situation, you can file new supplementary proceedings against the new assets. Interest keeps accruing in the meantime. If the examination makes clear the debtor has nothing but exempt income and basic household goods, spending more on attorney fees now is throwing good money after bad. Monitor the debtor through periodic public records checks and come back when circumstances change.
Collecting Across State Lines
If the debtor keeps assets, works, or banks in another state, you’ll need to domesticate the judgment there before you can enforce it. The Uniform Enforcement of Foreign Judgments Act, adopted by the vast majority of states, streamlines this. You file a certified copy of the judgment with the clerk in the county where the debtor’s assets are located. The debtor gets notice and a short window to raise narrow procedural objections, but cannot relitigate the underlying case. Once domesticated, the judgment is treated like any local judgment and you can use the full set of collection tools available in that state. Domestication is mostly a paperwork exercise, but it adds filing costs and time. Factor those in before chasing out-of-state assets.
How Long You Have to Collect
Judgments don’t last forever. A federal judgment lien is effective for 20 years and can be renewed once for another 20 years if you file a notice of renewal before the original period expires and the court approves it.13Office of the Law Revision Counsel. 28 USC 3201 – Judgment Liens State judgments have shorter lives, typically 5 to 20 years depending on the state, with most states allowing at least one renewal period of similar length.
Missing the renewal deadline is one of the most expensive mistakes a judgment creditor can make. Once the judgment expires, the right to collect is gone, no matter how much is still owed. If you’re playing a long game against a currently judgment-proof debtor, put the renewal deadline on your calendar years in advance. The filing is straightforward; the consequence of forgetting is permanent.
What It Costs to Pursue
These proceedings aren’t free. Court filing fees for the motion vary by jurisdiction but are generally modest. Process server fees for delivering the order run roughly $20 to $100 for standard service. Sheriff fees for physically levying on property range from under $100 to several thousand dollars depending on complexity and jurisdiction. Recording a judgment lien at the county recorder’s office typically costs between $10 and $90.
Attorney fees are usually the largest expense. A straightforward debtor examination with a follow-up garnishment order can run several hundred to a few thousand dollars. Contested proceedings involving hidden assets, fraudulent transfer litigation, or out-of-state enforcement climb quickly. Do the math before you file. If the outstanding judgment is $2,000 and the debtor appears to have limited assets, spending $3,000 on enforcement doesn’t make sense. Supplementary proceedings pay off when the judgment is large enough to justify the investment or when your preliminary research shows real assets to collect.