When Can You Freeze And Seize A Judgment Debtor's Bank Account?

What can you do to collect on a judgment, and when can you do it?

And does it matter if you're going after the judgment debtor directly, or after the property of the judgment debtor in the hands of a third party? In a recent decision, Radiance Capital Receivables Twenty One, LLC v. Lancsek, the North Carolina Court of Appeals answered that a creditor may simultaneously avail itself of the remedies available by "execution" and "supplemental proceedings." This ruling will benefit judgment creditors seeking to collect on judgments – particularly when going after funds in third-party bank accounts.

First Bank obtained a judgment in Dare County against Timothy Lancsek and sold it to Radiance Capital. Sometime later, Radiance Capital sought to collect on it. In North Carolina, the execution process is the primary method to collect on a judgment. The judgment creditor initiates the process by serving the judgment debtor with a Notice of Right to Claim Exempt Property.