Post-Judgment Deposition: a chance for the collections lawyer to be creative in pursuing the debtor.
Post-judgment deposition of the debtor is a useful tool to keep the pressure on the debtor.
Although there are a number of directions the case can go after a judgment has been obtained, we usually take a deposition next. This can involve the debtor, sometimes the debtor’s spouse or employer, the debtor’s bank, etc.
When pursuing a post-judgment deposition of the debtor, we also pursue documents. Included with the deposition is a request for documents that is quite extensive. The list will give us a picture of the debtor’s situation. For a list of the documents the debtor must produce, click here.
We don’t usually just depose the judgment debtor. We also insist on deposing all of those people that might have some knowledge of the debtor’s assets or business methods. This might include their spouse, girlfriend (usually both on the same day), business partner, mother, children or employer. Anyone that might have information about the whereabouts of assets.
Questions About Post-Judgment Depositions
What is a post-judgment deposition and why is it useful?
A post-judgment deposition is a formal, sworn examination of the debtor conducted after a judgment is entered. We question the debtor under oath about their assets, income, business activities, financial accounts, and anything else relevant to collecting the judgment. The deposition is recorded and transcribed. False statements are perjury — which significantly raises the stakes for a debtor who might otherwise be tempted to hide assets.
Do you only depose the judgment debtor?
No — and this is where post-judgment depositions become a powerful tool. We also depose anyone who might have knowledge of the debtor's assets or business methods: their spouse, business partners, employer, and sometimes other associates. We have deposed a debtor's girlfriend and spouse on the same day. The goal is a complete picture of where the money is, from every angle available.
Can the debtor refuse to answer questions at a deposition?
A debtor can assert privileges in limited circumstances, but they cannot simply refuse to participate or refuse to answer legitimate questions about their finances and assets. A deponent who refuses to appear or refuses to answer properly framed questions faces a motion to compel and potentially contempt of court — the same escalating consequences that apply to written discovery.
What documents does the debtor have to produce at the deposition?
We accompany the deposition notice with an extensive document request covering bank statements, tax returns, business records, asset schedules, contracts, and more. The document production requirement is where the real work happens. It forces the debtor to assemble a full financial picture instead of answering from memory, one question at a time.
How does the deposition fit into the overall collection process?
Typically it follows written discovery. The written questions force initial disclosure; the deposition then tests and deepens that disclosure in real time, allowing us to follow up on inconsistencies, probe incomplete answers, and identify assets the written responses obscured or omitted. The combination is significantly more powerful than either tool alone.
What happens if the deposition reveals the debtor lied in their written discovery responses?
Inconsistencies between written discovery responses and deposition testimony are powerful leverage and can form the basis of a contempt motion. A debtor who demonstrably provided false answers under oath has a serious problem — and they know it. That realization frequently brings matters to resolution.