Collecting on a debt can be a very challenging process. Some individuals and businesses take drastic measures to try to avoid financial responsibility.
Particularly when the debtor is an individual, they might try to move as a means of avoiding debt collection efforts. If a creditor has previously secured a judgment against a debtor in one state, the party who owes money may leave the state.
They may start a job elsewhere in the hopes of avoiding wage garnishment, property liens and other aggressive forms of collection that typically require a court judgment. If creditors track a non-compliant debtor to Nevada, they can potentially seek to enforce a foreign judgment in Nevada to resume collection activities.
States recognize the authority of other states’ courts
Technically, each state has its own court system that operates independently from other states. Statutes are slightly different in every state throughout the country, but the civil courts generally recognize the validity of judgments issued in other jurisdictions, even if they aren’t automatically enforceable in a different state.
Creditors who successfully took legal action in Arizona could request that the Nevada courts domesticate the judgment issued in another location. They submit the judgment to the courts, and the courts can then authorize the continuation of collection activity based on that judgment.
The process of domesticating a foreign judgment is often faster than filing a new lawsuit in a different state. It also reduces the opportunity for the debtor to flee or take other steps to avoid financial responsibility.
Reviewing the conduct of a debtor, their existing judgment and other details about a particular situation with a skilled legal team can help creditors evaluate their options. A judgment issued elsewhere can lead to successful collection efforts in Nevada with the right legal support.