Judgment Collection in Connecticut: Turning a Court Judgment into Dollars Collected
May 28, 2025Judgment Collection in Connecticut: Turning a Court Judgment into Dollars Collected
In commercial lending, securing a judgment is a critical milestone. However, for banks, institutional lenders, and commercial creditors, a court’s decision holds value only if it results in actual monetary recovery.
In Connecticut, the postjudgment enforcement process is governed by a comprehensive legal framework designed to assist creditors in converting judgments into payment. State law provides a range of statutory remedies that allow creditors to seize assets, garnish income, and place liens on both real and personal property. These tools are powerful and, when combined with strategic selection, procedural precision, and timely legal execution, can lead to meaningful and measurable recovery of amounts owed.
This article outlines the principal postjudgment collection mechanisms available to Connecticut creditors. Each section includes practical examples and citations to the relevant statutes and case law, offering a practical guide to effective enforcement strategy.
Bank Executions (Bank Garnishments)
A bank execution is one of the most direct and cost-effective tools available to Connecticut judgment creditors. It enables the creditor to seize funds held in the debtor’s deposit accounts at financial institutions. Once the court clerk issues the execution, a state marshal serves it on the identified bank. Upon service, the bank must immediately freeze all nonexempt funds in the debtor’s account. Certain funds, such as Social Security benefits and unemployment compensation may be protected under exemption laws. After the expiration of the statutory holding period, the bank is required to release the nonexempt funds to the marshal for turnover to the creditor. This remedy is particularly effective when the creditor has timely and accurate information about the debtor’s banking relationships, including the financial institution, account type, and recent deposit activity.
Example: A regional lender obtains a $400,000 judgment against a commercial borrower. The lender secures a bank execution, which is served on the debtor’s primary financial institution. The debtor’s business checking account contains $150,000 in available funds. The bank freezes the funds and, after the statutory hold period, remits the money to the marshal, who applies the proceeds to the outstanding judgment.
Legal Authority: Conn. Gen. Stat. §§ 52-367a, 52-367b (execution against debts due from financial institutions to judgment debtors).
Wage Executions (Wage Garnishments)
Wage executions allow creditors to collect directly from a debtor’s earned income. After obtaining court approval, a state marshal serves the wage execution on the debtor’s employer. Upon service, the employer is legally obligated to deduct a portion of the debtor’s disposable earnings and remit the withheld funds to the marshal for application to the judgment. By statute, up to 25 percent of the debtor’s disposable weekly income may be garnished, or the amount by which disposable income exceeds forty times the federal minimum hourly wage, whichever is less. This limitation is designed to ensure that the debtor retains sufficient income for basic living expenses. Wage executions provide a consistent and predictable recovery stream and are particularly effective when the debtor maintains steady employment.
Example: A finance company obtains a deficiency judgment against an individual guarantor. After receiving court approval, the creditor instructs a marshal to serve the execution on the debtor’s employer. The employer begins deducting 25 percent of the debtor’s disposable income and forwards the funds to the marshal, who applies them to the judgment balance.
Legal Authority: Conn. Gen. Stat. § 52-361a (authorizes wage executions and establishes the procedure for service and calculation); Conn. Gen. Stat. § 52-350a (defines disposable earnings and references applicable exemption thresholds).
Property Executions (Personal Property)
A property execution allows a judgment creditor to seize and sell a debtor’s nonexempt tangible assets, including vehicles, equipment, inventory, or other valuable personal property. Once the court issues the execution, a state marshal is authorized to locate and seize the specified property and conduct a public auction. The net proceeds are applied to the outstanding judgment balance. This remedy is particularly effective in commercial matters involving businesses with significant physical assets, especially where the creditor has reliable information regarding the location and ownership of nonexempt property.
Example: A creditor obtains a judgment against a business that owns commercial equipment. A state marshal seizes the equipment and conducts a public auction. The proceeds from the sale are applied to reduce the judgment debt.
Legal Authority: Conn. Gen. Stat. § 52-356a (authorizes execution against non-exempt personal property and sets forth procedure).
Judgment Liens on Real Property
A judgment lien allows a creditor to encumber a debtor’s interest in real property for a period of up to twenty years. Once properly recorded in the land records of the town where the property is located, the lien attaches to the debtor’s interest and impairs marketable title. It often results in payment when the debtor seeks to sell, refinance, or otherwise transfer the property. If equity exists and the property is not fully encumbered by senior liens, the creditor may initiate a foreclosure action to enforce the judgment lien. This process may result in a court-ordered sale, with the proceeds applied to satisfy the judgment balance.
Example 1: A creditor records a $150,000 judgment lien against commercial property. Two years later, the debtor refinances the property and must satisfy the lien as a condition of closing.
Example 2: A creditor records a lien against a debtor’s investment property. After confirming that the property has equity and no significant senior liens, the creditor files a foreclosure action. The court authorizes a judicial sale, and the proceeds are applied to the outstanding judgment.
Legal Authority: Conn. Gen. Stat. § 52-380a (authorizes the creation and recording of judgment liens on real property; authorizes foreclosure of judgment liens).
Information Subpoenas and Debtor Examinations
Postjudgment discovery allows a creditor to obtain information about the debtor’s financial condition, assets, income, and liabilities. The two primary discovery tools are written interrogatories, and oral examinations conducted under oath before a judge or court official. These tools are essential when the creditor lacks sufficient knowledge about the debtor’s assets or income sources. Information obtained through discovery often reveals bank accounts, business interests, vehicles, receivables, or other attachable assets that can support further enforcement action. Failure to comply with postjudgment discovery may result in court sanctions, including a finding of contempt.
Example: A lender obtains a $250,000 judgment against a commercial borrower. The creditor serves interrogatories under oath. In response, the debtor discloses a brokerage account and a vehicle. Based on this information, the creditor proceeds with bank and property executions to recover funds.
Legal Authority: Conn. Gen. Stat. § 52-351b (authorizes postjudgment interrogatories to identify non-exempt assets); Conn. Gen. Stat. § 52-397 (permits oral examination of the judgment debtor under oath); Conn. Gen. Stat. §§ 52-399, 52-400b, 52-400c (provides enforcement procedures and sanctions for noncompliance with postjudgment discovery).
Charging Orders Against LLC or Partnership Interests
A charging order allows a judgment creditor to intercept distributions that would otherwise be payable to a debtor from a limited liability company or partnership. The order does not convey any ownership, management rights, or control of the entity, but it entitles the creditor to receive distributions until the judgment is satisfied. This remedy is especially useful in closely held entities or where the debtor receives income through non-wage sources, such as profit distributions, and where traditional wage garnishment is not available or effective.
Example: A creditor obtains a $100,000 judgment against a debtor who owns a thirty percent interest in a real estate holding company structured as an LLC. The court issues a charging order directing the LLC to pay all future distributions attributable to the debtor’s interest directly to the creditor until the judgment is paid in full.
Legal Authority: Conn. Gen. Stat. § 34-259b (Connecticut Uniform Limited Liability Company Act provision establishing the charging order as the exclusive remedy for creditors); Conn. Gen. Stat. § 34-349 (charging order provision under the Connecticut Uniform Partnership Act).
Turnover Orders
A turnover order compels a judgment debtor, or a third party in possession of the debtor’s assets, to transfer specific nonexempt property or funds directly to a state marshal or the judgment creditor. This remedy is most effective when the creditor has identified particular assets that are accessible but not voluntarily surrendered. It is often used in situations where the debtor refuses to cooperate or where formal execution may cause delay or unnecessary expense. Turnover orders are enforceable through contempt proceedings and are frequently used in conjunction with postjudgment discovery efforts to compel compliance and recover assets that can be applied toward satisfaction of the judgment.
Example: A debtor owns a valuable antique vehicle but refuses to turn it over despite repeated creditor demands. The court issues a turnover order requiring the debtor to deliver the vehicle to a state marshal for execution and sale. The proceeds are applied to the outstanding judgment balance.
Legal Authority: Conn. Gen. Stat. § 52-356b (authorizes the court to order turnover of non-exempt personal property to a creditor or state marshal); Conn. Gen. Stat. §§ 52-400b, 52-400c (provides enforcement procedures and sanctions for noncompliance).
Installment Payment Orders
An installment payment order requires a judgment debtor to make scheduled payments directly to the creditor. This remedy is frequently used when wage executions are not feasible, such as when the debtor is self-employed, receives irregular income, or is paid in cash. It may also be used as a preliminary step before initiating a wage execution, particularly when the debtor’s income structure is uncertain or difficult to verify.
Example: A debtor who receives 1099 income from consulting work is ordered to pay five hundred dollars per month toward a judgment. The creditor monitors compliance and initiates enforcement proceedings after the debtor fails to make several payments.
Legal Authority: Conn. Gen. Stat. § 52-356d (authorizes the court to enter installment payment orders and sets forth enforcement procedures for noncompliance)
Contempt Proceedings for Noncompliance
When a judgment debtor fails to comply with court orders, including postjudgment discovery or court-ordered payment obligations, the creditor may petition the court for a finding of contempt. Courts have broad authority to enforce their orders and may impose sanctions that include monetary fines, orders to compel compliance, or, in severe cases, arrest through issuance of a capias mittimus. Contempt proceedings are a critical enforcement mechanism when dealing with debtors who are evasive, unresponsive, or acting in bad faith. They reinforce the authority of the court and serve as a powerful tool to compel compliance and advance collection efforts.
Example: A debtor fails to respond to interrogatories and does not appear for a scheduled examination. The court grants the creditor’s motion for contempt and issues a capias mittimus, authorizing the debtor’s arrest for failure to comply with the court’s discovery order.
Legal Authority: Conn. Gen. Stat. §§ 52-399, 52-400b, 52-400c (provides for enforcement of court orders in postjudgment proceedings, including through contempt).
Receivership
Receivership is an equitable remedy that allows a court to appoint a neutral third party, known as a receiver, to take control of the debtor’s property or business operations in order to protect, preserve, and manage assets for the benefit of creditors. This remedy is typically used in complex enforcement scenarios involving fraud, asset concealment, dissipation of value, or high-value commercial holdings.
The receiver is charged with safeguarding assets, preventing further loss or diversion, and, when authorized, liquidating property to satisfy outstanding judgment obligations. Receivership is a powerful tool when other forms of postjudgment collection are inadequate or when the debtor is actively undermining collection efforts.
Example: A creditor establishes that a debtor is fraudulently transferring business assets to avoid payment of a judgment. The court appoints a receiver to assume control of the business, secure the assets, and conduct an orderly liquidation to satisfy the debt.
Legal Authority: Conn. Gen. Stat. §§ 52-504, 52-624 (authorizes the appointment of a receiver to preserve or dispose of property during litigation or postjudgment enforcement).
Final Remarks
Connecticut law offers a comprehensive array of postjudgment remedies, including executions, judgment liens, charging orders, contempt proceedings, and receivership. When applied with precision and strategic foresight, these tools provide creditors with clear, enforceable avenues for turning judgments into tangible monetary recovery.
About Neubert, Pepe & Monteith, P.C.
Neubert, Pepe & Monteith, P.C. maintains a well-established creditors’ rights practice with significant experience in postjudgment enforcement and recovery litigation. We represent banks, lenders, and institutional creditors across Connecticut, providing strategic, results-oriented counsel focused on maximizing recovery. To learn more or to schedule a consultation, contact Attorney Lucas Rocklin at (203) 781-2835 or lrocklin@npmlaw.com.
Lucas B. Rocklin is a creditor rights attorney. He has extensive experience in representing financial institutions and creditors in workout and litigation matters (commercial and consumer) including collections, foreclosures, bankruptcy and landlord-tenant litigation. Attorney Rocklin also practices labor law including collective bargaining agreement negotiations and arbitrations.
Joseph R. Dunaj is a member of the firm’s commercial litigation, and bankruptcy and creditor rights groups. His extensive experience includes representation of financial institutions and creditors in various collection cases and foreclosure cases, inclusive of settlement negotiations, title matters, and both appellate and bankruptcy work.
John T. Szalan is a member of the firm’s commercial litigation and creditor rights groups. His experience includes representation of financial institutions, creditors, and institutional real estate clients, inclusive of settlement negotiations, title issues, and real estate transactions.