Many creditors spend years getting a judgment, only to discover that the day the court rules is not the day they get paid. A judgment only confirms how much the debtor must pay. Making that money actually reach the creditor is a separate process, called enforcement of judgment, and it has a time limit that cannot be fixed once it has passed.
The enforcement sequence
1. Order for performance After judgment, the court issues an order requiring the debtor to pay within a set time, and the order must be served on the debtor.
2. Writ of execution If the debtor still has not paid when the time under the order has passed, the creditor asks the court to issue a writ of execution and to appoint an enforcement officer.
3. Asset tracing The creditor has the duty to point out the debtor's assets for the enforcement officer to seize or attach. This is the step where most cases get stuck, because the creditor does not know what assets the debtor has or where they are.
4. Seizure or attachment Tangible assets such as land, houses, vehicles and machinery are dealt with by seizure. Money that a third party must pay to the debtor, such as salary, rent, payment for work or money in a bank account, is dealt with by attachment.
5. Auction and payment Seized assets are put up for auction, and the proceeds are paid to creditors in the order the law sets, after the costs of enforcement are deducted.
The ten-year limit creditors must watch
The creditor must apply for enforcement within ten years from the date of the judgment or order. After that, the judgment can no longer be enforced against the debtor's assets.
A common trap is the creditor who obtains a writ of execution in the first year and assumes the right will last forever. In practice, merely holding a writ without seizing or attaching any asset within the period may not be enough. A creditor whose judgment is close to ten years should therefore check the status of the case urgently.
Another thing to know is that the later you start, the more likely the debtor's assets are to be transferred to others, mortgaged, or seized first by other creditors. Ten years is a ceiling, not a time to wait for.
If the debtor has no assets
"No assets" often means "not found yet" or "already transferred away". Before concluding that the judgment is of no use, check four things.
- Assets transferred before or during the case A transfer that puts the creditor at a disadvantage may be challenged by an action for revocation. Read more in what a creditor can do when a debtor transfers assets to escape a debt
- A guarantor If the debt has a guarantor and the guarantor was also sued, enforcement can be carried out against the guarantor's assets within the extent the law provides.
- Money that other people must pay to the debtor such as salary, rent, or payment for work from business partners
- A bankruptcy petition If the debt reaches the threshold set by the bankruptcy law, a bankruptcy petition places all of the debtor's assets under the management of the official receiver.
📌 See more: Asset tracing and enforcement · Guide to debt collection, suing debtors and enforcement
If you hold a judgment but have not been paid, send the judgment to our legal team for assessment. We will check whether you are still within the time limit and what assets the debtor has that can be enforced against.
This article is general information, not legal advice for a specific case.
