Execution on Intangible Personal Property

Question 1

the lien commences when…

Answer 1

A writ of execution is delivered to the sheriff.

Question 2

The lien applies to..

Answer 2

all intangible personal property in the Commonwealth.

Question 3

The lien is good for…

Answer 3

1 year.

Question 4

Because the property is intangible, you cannot _____ on the lien.

Answer 4

Levy

Question 5

The lien is typically enforced by…

Answer 5

a writ of garnishment or a creditor’s bill.

Question 6

What are examples of intangible property?

Answer 6

1. Bank account
2. accounts receivable
3. wages
4. other debts owed to debtor

Question 7

What third parties does Virginia allow creditors to take from?

Answer 7

1. Purchasers of right to bring lawsuit (chose in action) that take without knowledge of the writ. This usually deals with accounts receivable.
2. Judgement debtor’s debtor who pays the judgment debtor without written notice of the lien. BUT, creditors cannot tie up a debtor’s salary or wages with a mere written notice.

Question 8

A writ of garnishment is issued when…

Answer 8

There is a live writ of execution.

Question 9

A writ of garnishment is issued to…

Answer 9

The debtor’s third party debtor from who the debtor is trying to collect. Called a garnishee.

Question 10

The return requires a garnishee to…

Answer 10

list property.

Question 11

You must serve the writ on garnishee with…

Answer 11

copy to the debtor.

Question 12

When served with the writ, the garnishee may…

Answer 12

1. Admit liability and surrender money or property to the court.
2. Assert defenses. Creditor gets no greater rights than debtor. The garnishee gets a mini trial with a jury if she asks for it.
3. Fail to appear. Default judgment. (This then gets treated like an ordinary judgment against garnishee.)

Question 13

Once the writ is served, if the garnishee admits liability, she must pay…

Answer 13

the court, not the debtor or another third party.

Question 15

Writ of garnishment applies to..

Answer 15

Debts and tangible property in the possession of third parties, e.g. safety deposit box at the bank.

Question 16

What are the limits on garnishment?

Answer 16

1. Marital bank accounts. It’s assumed that the non-debtor spouse contributed half of contents. This is rebuttable by creditor who has BoP to show debtor contributed more than half.
2. Other joint accounts. Non-debtor account holder has the BoP to show they contributed more than half.
3. Negotiable instruments and negotiable stock certificates. These must be seized by the sheriff.
4. Wages-Same limitation already mentioned.