Glossary
What is a debtor examination (judgment debtor exam) and how does it help collect an unpaid invoice?
A debtor examination — also called a judgment debtor exam or supplemental proceedings — is a post-judgment court proceeding where a creditor can compel the debtor to appear under oath and answer questions about their assets, income, and bank accounts.
After winning a court judgment, many creditors do not know where to collect — which bank the debtor uses, who employs them, or what property they own. A debtor examination solves this. The creditor subpoenas the debtor to appear in court (or before a court officer) and answer questions about their finances under oath. Lying is perjury. The process typically costs only the subpoena fee ($20–$100) and an hour of time.
Questions in a debtor examination cover: employer name and payroll schedule (for garnishment), bank names and account numbers (for levy), real property owned (for judgment lien), vehicles, and other assets. The debtor is legally required to answer truthfully. Many debtors comply fully; others attempt to conceal assets, which creates perjury exposure.
The examination can also be used to order the debtor to turn over non-exempt assets directly, or to set up installment payments under court supervision. Courts have broad discretion to order what is necessary to satisfy a judgment.
Most states allow a debtor examination to be scheduled immediately after a judgment is entered. The practical advice: if a debtor does not voluntarily pay within 30 days of a judgment, file for a debtor examination. The information obtained is far more valuable than multiple collection letters.
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