Relocations are a common challenge for businesses attempting to collect on debts. Individuals trying to avoid compulsory repayment and collection efforts may move from one temporary living arrangement to another.
In some cases, they may even leave the state after the courts award a judgment to their creditors. People might believe that crossing state lines protects them from wage garnishment or other collection options made possible by a civil court judgment.
Creditors may still have the option of pursuing collection activity in the new state once they locate the debtor. Companies that trace debtors to Kentucky can continue their collection efforts without directly suing the debtor again.
The courts can domesticate the judgment
The prospect of repeatedly litigating the same debt is frustrating to businesses with a legitimate interest in collecting unpaid debts. Thankfully, filing a lawsuit against the debtor a second time in another jurisdiction is often unnecessary.
Kentucky’s civil courts can recognize judgments issued in other jurisdictions. While that recognition isn’t automatic, creditors can petition to domesticate foreign judgments issued in another state.
Instead of going through the litigation process a second time and risking the debtor moving once again, creditors can rapidly move forward with the process of having the local courts in Kentucky recognize the judgment issued in another state. The process requires formal legal filings, making the support of a lawyer familiar with debt collection processes beneficial.
Judgment domestication can be a viable solution in cases where people move to avoid their financial obligations. Reviewing the out-of-state judgment and the prior conduct of the debtor can help organizations frustrated by a recalcitrant debtor explore different debt collection solutions.