The Nuts and Bolts of Asset Seizures (Execution Writs) Steven A. Harms Muller Muller Richmond Harms & Myers PC Birmingham I. Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 II. The Writ to Seize Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-2 III. Working with the Deputy Sheriff or Court Officer - A Teamwork Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-8 Exhibit Exhibit A Request and Order to Seize Property . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-11 I. Overview Although issuing a Writ to Seize Assets is often the first action taken following the entry of a money judgment for a specific amount of money—it really shouldn’t be just a knee jerk reaction to collecting the judgment. In fact, it may not be the best course of action at all. The fact of the matter is that there are points along the collection path that require a certain amount of good old fashioned strategy. This is one of those points. Once you have entered your money judgment for a specific amount of damages, and the 21 day appeal period has run, ask yourself: “what is the most effective way to collect this judgment?” That may involve contacting the judgment debtor for collection; using garnishment to tap into property held by third parties; or using the Writ To Seize Assets to tap into property held by the defendant. Use a strategy based on information you have gathered or are now gathering as to assets, income, accounts of your judgment debtor. Ask your client for credit information (how about the credit application?). Search Lexis or Autotrack or other computer sources for information (including social network sites and the debtor’s web site). Although many clients believe that a judgment is an order to pay, attorneys know better. In the case of the unsophisticated client, you might have to carefully and patiently explain that because our forebears abolished debtor’s prisons, the ingenuity and effort involved in collecting judgments is often greater than that involved in obtaining the judgment. Anyone can win a case, especially if the client is right. After a judgment, you know your client is right because the court has said so, and yet collecting from a wily business debtor often requires a combination of genius, determination, and patience. Some judges even view collections with disdain, proclaiming, “My court is not a collection agency.” Such courts can bend over backwards to help debtors avoid payment of their judgments. Michigan is a limited judgment lien state. A judgment creditor may register a judgment lien against a debtor’s real property. MCL 600.2801 et seq. SCAO form MC 94 can be used for this purpose. This does not create a “true judgment lien,” however, because foreclosure is not an option. MCL 600.2819. Nonetheless, if the property is sold or refinanced, the judgment creditor must be paid—limited to the debtor’s equity in the property © 2013 The Institute of Continuing Legal Education 2-1 Creditors' Rights 2013, June 6, 2013 after all senior liens, property taxes, and costs and fees associated with the closing have been paid. MCL 600.2819, .2807. Therefore, a creditor must still seek a writ of execution against realty in order to collect against the liened property, absent the debtor’s voluntary sale or refinancing. See MCL 600.6001, .6002, .6004. See also the discussion on executions on entireties property in Steven A. Harms, Handling the Collection Case in Michigan: A Creditor’s Guide ch 10 (ICLE 4th ed 2003). A common issue for collection attorneys is the life of a judgment. Under MCL 600.5809(3), a judgment from a Michigan court is good for 10 years, while a judgment from another state remains collectible for 6 years. The statute further provides that a judgment may be renewed for another 10 or 6 years. In Van Reken v Darden, Neef & Heitsch, 259 Mich App 454, 674 NW2d 731 (2003), the plaintiff’s ex parte motion to renew was ruled sufficient to renew a judgment under MCL 600.5809(3). The court rejected the argument that the statute required the filing of a complaint to renew a judgment. Form 9.7 is a sample motion to renew a judgment. Because of the automatic stay provisions of MCR 2.614(A)(1) and 7.108, you must allow the 21-day appeal period to expire before initiating any sort of levy. However, on the first day after the appeal period expires, your guns should begin blazing. II. The Writ to Seize Assets The writ is the court’s command to the sheriff or bailiff of the court to seize the debtor’s property, inventory it, allow the debtor to select exemptions, sell the rest at public sale, pay the expenses of the sale, and then apply the rest to the judgment. See MCL 600.6001 et seq. The sheriff may demand an indemnity bond from the judgment creditor only if he or she has a reasonable doubt about the title of the goods to be seized. MCL 600.6009. The sheriff is entitled and in fact required to break into any place except a home to seize goods pursuant to a writ of execution. Silverman v Stein, 242 Mich 64, 217 NW 785 (1928). If the sheriff fails to do the job, thus causing the creditor to suffer the loss of once available goods, the sheriff is liable to the judgment creditor for the damages sustained. Beard v Clippert, 63 Mich 716, 30 NW 323 (1886); see also Valentino v Oakland County Sheriff, 424 Mich 310, 381 NW2d 397 (1986) (sheriff liable for permitting judgment debtor in civil custody to leave before hospital room was searched). If the debtor is a business and has inventory, the writ of execution is theoretically the perfect remedy. However, in most cases, theory is not reality. First, many sheriffs and deputies are unwilling to do anything beyond serving the writ of execution on the debtor. This usually does no one any good. Some sheriffs demand an indemnity bond before going any further. In addition, some district court clerks have been instructed to refuse to issue a writ unless an indemnity bond has already been filed—a wholly unlawful refusal in my view. Obtaining an indemnity bond costs money and sometimes requires that you have a friend in the indemnity bond business. Many insurance agents are not permitted to issue an indemnity bond without taking the creditor’s complete financial statement. The process is long, unwieldy, and sometimes impossible. On the other hand, some insurance agents have the authority to issue an indemnity bond for as much as $200,000 without a financial statement. If you get along well with such an agent and give the agent other good business, he or she might cooperate. Even after the writ is issued and the indemnity bond is in the hands of the officer, you will probably have to hold the officer’s hand the rest of the way. You will have to tell the officer where to go, what to do, and what to say. You will have to 2-2 © 2013 The Institute of Continuing Legal Education The Nuts and Bolts of Asset Seizures (Execution Writs) hire the truck and the movers, advertise the sale, pay for the storage, prepare the return, and show the deputy how to disburse the proceeds. Unless you have found one of the few process servers who actually do this kind of work well and without extensive supervision, a writ of execution should be a last resort. The best source of information on this topic in general, and to obtain information on highly trained, reputable and knowledgeable court officers and deputy sheriffs: MCODSA.com Note that the SCAO has issued a memo assuring courts that it is acceptable to receive a copy of an SCAO-approved form for filing as if it were an original. The SCAO issued this memo in response to reports that some courts were only accepting “original” SCAOapproved forms for filing as a result of revisions to the garnishment forms. Court officers are entitled to recover fees set by statute. See MCL 600.2559, .2529, .8420. The defendant is required to pay the court officer’s statutory fees based on the amount of the settlement achieved rather than the market value of the levied property, and the court officer may recover additional expenses from plaintiff’s counsel for services that go beyond his or her office. Harbour Towne Marina Ass’n v Geile (In re Fees of Court Officer), 222 Mich App 234, 564 NW2d 509 (1997). Services the court officer can recover additional fees on (from plaintiff’s counsel as well as the defendant, on an ordinary contract theory) include skip tracing, negotiation services, serving as a messenger, serving papers, and investigating assets. Id. The court has the discretion to quash a writ of execution for such grounds as illegality, unfairness, fraud, injustice, and oppressiveness. Schmidt v Bretzlaff, 208 Mich App 376, 528 NW2d 760, remanded on other grounds, No 102716, 1995 Mich LEXIS 2578 (Dec 19, 1995). MCR 3.106, which deals with the procedures for orders for the seizure of property, provides that no funds can be collected pursuant to an order before the order has been served; that an inventory must be prepared upon seizure with copies provided to the parties and their counsel; that within 21 days any money received must be paid to the court or deposited in a trust account; and that within 14 days after the earlier of the expiration of the order or satisfaction of judgment, a report summarizing collection activities, including an accounting of all money and property collected, must be filed with the court and provided to the prevailing party or his or her attorney. SCAO Forms MC 82, Partial Payment Receipt and Inventory of Seized Property, and MC 83, Report of Collection Activity Under Order to Seize Property, are to be used by the court officer for this purpose. Execution is the process of putting into effect the final judgment of the court. While garnishment takes property or money that is in the hands of a third party, execution takes property or money that is in the hands of the judgment debtor. MCL 600.6001 et seq. (appendix J) and MCR 3.106 (appendix Q) govern execution in Michigan. The same form is used for a writ of execution in district and in circuit courts (form 10.14). Make sure to obtain the form that went into effect May 2002 as the result of the addition of MCR 3.106 (discussed in this section below). In general, a writ of execution orders the sheriff to seize and to sell the debtor’s property to satisfy the judgment. You may use another court officer whom you feel is more qualified (see forms 10.15 and 10.16). Court officers are entitled to recover fees set by statute. See MCL 600.2559, .2529, .8420. The defendant-debtor must pay the court officer’s statutory fees based on the amount of the settlement achieved, not © 2013 The Institute of Continuing Legal Education 2-3 Creditors' Rights 2013, June 6, 2013 on the market value of the seized property. Harbour Towne Marina Ass’n v Geile (In re Fees of Court Officer), 222 Mich App 234, 564 NW2d 509 (1997). Often, the assets the officer levies on are less than the amount of the judgment. In addition, the value of the officer’s levying efforts can exceed the asset’s market value. For example, as the court noted, “[A] car is worth more to its owner than its auction price. It represents the debtor’s transportation and ‘freedom’ in our mobile society.”Id. at 252. In addition, the court officer may bring a separate action against the plaintiff-creditor under a contractual theory, seeking compensation for services performed that are beyond his or her statutory duties. These services may include acting as a go-between in negotiations, serving as a messenger, serving papers, and investigating assets. Id. at 254–255. MCR 3.106, which deals with the procedures for orders for the seizure of property, provides that no funds can be collected pursuant to an order before the order has been served; that an inventory must be prepared upon seizure with copies provided to the parties and their counsel; that within 21 days any money received must be paid to the court or deposited in a trust account; and that within 14 days after the earlier of the expiration of the order or satisfaction of judgment, a report summarizing collection activities, including an accounting of all money and property collected, must be filed with the court and provided to the prevailing party or his or her attorney. Forms MC 82, Partial Payment Receipt and Inventory of Seized Property, and MC 83, Report of collection Activity Under Order to Seize Property, are to be used by the court officer for this purpose. The primary reason for the adoption of MCR 3.106 was to increase the professionalism of court officers by requiring formal procedures to apply for court officer status as well as to clearly define the steps in the execution process. The rule also allows each court to select court officers for two-year terms based on a written application for the position, as well as on listings of independent contractors and other persons used by the court officers in the collection process. MCR 3.106(B), (C). Among the safeguards implemented by this rule is the maintenance of a client-trust account through which remittances of funds should be processed. MCR 3.106(G). Strategy. A writ of execution is usually ineffective if you do not have much information about the debtor’s property or the court officer will not or cannot investigate properly. Since it is easier to discover business assets and the court officer cannot break into a home to levy an execution on property, execution works best on debtors who are in business. It is important to have a writ of execution issued promptly in case other creditors are pursuing the same debtor. Maintain constant contact with the court officer and make sure the officer levies the execution on the property immediately. The first execution issued does not have priority unless it is also the first to be levied on the assets. MCL 600.6007. Never take the debtor’s word that all the assets are secured. Check UCC filings and investigate. You might find that a secured creditor has failed to perfect a lien or that taxes have actually been paid. You should find out whether the assets on which you want the execution to be levied are secured before you send the court officer out with the writ. See form 2.4. You should also check whether the financing statement for a security interest has expired (it is only good for five years, MCL 440.9515(1), and can only be continued by filing a continuation statement within six months before the expiration of the five-year period, MCL 440.9515(4)) or whether it adequately describes the collateral under MCL 2-4 © 2013 The Institute of Continuing Legal Education The Nuts and Bolts of Asset Seizures (Execution Writs) 440.9108. If a security interest claimed in a financing statement is defective, have the court officer go ahead and seize the assets. Whether or not a security interest is valid can be settled later, but the asset might not be available later. Note that revisions to UCC Article 9 (dealing with secured transactions) that took effect July 1, 2001, result in more transactions being covered by Article 9, perfection of security interests is easier, and the procedures for foreclosing and selling collateral are streamlined. Practitioners should note that the revision of Article 9 does allow for a security interest in money. For more detailed discussion of UCC Article 9 and the 2001 amendments, see Hon. Scott W. Dales et al, Michigan Security Interests in Personal Property (ICLE 2010). Where plaintiff and defendant are working the execution out by way of payments, have the back of the execution or a separate form filled out with the full payment arrangement, get both parties to agree to it, and then charge your fees. Charging fees too early (before any payment is made) may not be a good idea, as one court officer was charged with criminal extortion. However, charging fees once the deal is reached and both sides agree to all of the terms, including the fees, is not a bad idea. What property can be levied? A writ of execution is first levied on personalty. See MCL 600.6017. A writ of execution is only valid if based on a money judgment and only if 21 days have elapsed since the date of the judgment. If the personal property of the defendant does not satisfy the judgment in full, the writ may be levied on real estate. MCL 600.6004. MCL 600.6017 provides that, except as otherwise provided by law, “all personal property of the judgment debtor” is subject to execution. In United States Leather, Inc v Mitchell Mfg Group, Inc, 276 F3d 782 (6th Cir 2002), the court rejected the defendants’ argument that promissory notes were not subject to levy against personal property without statutory authority, noting that MCL 600.6017(2) specifically includes “[b]ills and other evidences of debt.” MCL 600.6022 specifies persons whose property is exempt from execution, and MCL 600.6023 lists types of property that are exempt from execution. Bankruptcy places an automatic stay and prevents any action against the defendant, including enforcement of a lien, enforcement of an execution, or eviction, unless the attorney for the plaintiff possesses a separate, special order. Special orders are available for court officers for private sales, quick sales, and other needs. There are a number of Internet sites relating to skip-tracing and asset investigations. A good summary site is http:// www.manhunt-seminars.com. When a legal entity is the debtor, individuals can be collected from and their personal assets taken when they are named in the writ, such as in situations where they are individually liable, they are guarantors, they are proprietors, or they are general partners. The writ must be read carefully. Partnership property cannot be levied upon if you have a judgment against only one of the partners. Partnership property can be levied on if your judgment also extends to the partnership. Personal property. The court may issue execution on a judgment any time after 21 days after the entry of the judgment. However, if there is a motion for a new trial, a motion for rehearing or reconsideration, or a motion for other relief from judgment, the court may not issue execution until 21 days after the entry of the order deciding the motion. If you © 2013 The Institute of Continuing Legal Education 2-5 Creditors' Rights 2013, June 6, 2013 suspect that the motion was only filed to stall and that goods might be improperly transferred, you may obtain a restraining order. See MCR 2.614(A). The existence of a judgment does not create a lien on any of the debtor’s personal property. It is therefore important to levy a writ of execution as quickly as possible. How a levy may be executed is clearer as a result of the decision in Harbour Towne Marina Ass’n v Geile (In re Fees of Court Officer), 222 Mich App 234, 564 NW2d 509 (1997) (also discussed in §10.22), where the court officer was faced with having to move a large object—a yacht. Traditionally, a levy is not valid unless the item is removed and stored. The court in Harbour Towne held that a “constructive” levy on the vessel would suffice. Id. at 247. The constructive levy was accomplished by the court officer’s (1) attaching a writ of execution to the boat, (2) delivering a copy of the execution writ to the marina manager, (3) taking the ship’s log off the vessel, and (4) issuing and publishing a notice of sale according to the execution statute. See MCL 600.6012; see also Mary v Lewis, 399 Mich 401, 249 NW2d 102 (1976). In United States Leather, Inc v Mitchell Mfg Group, Inc, 276 F3d 782 (6th Cir 2002), the court held that a levy against defendant business’s personal property was effective at a facility apart from its main office where the officer was assured by defendant and its counsel that the officer would have complete control over the sale and disposition of defendant’s property and the officer agreed to allow the property to remain to save the expense of moving it. The court viewed this express grant of control over the sale and disposition of the personal property as giving the levy officer constructive possession. Since defendant also acknowledged that its remaining personal property was insufficient to satisfy the judgment, the levy against the property at the second facility was not in violation of MCL 600.6004. An execution writ expires after 90 days after the sheriff or other officer handling the execution receives the writ. MCL 600.6002. It may be reissued by submitting the old one to the court with a new one. MCL 600.6005. See MCL 600.6006 for the law regarding issuance of a new writ of execution after partial satisfaction. Several writs of execution may be issued to sheriffs of different counties and enforced by them at the same time. MCL 600.6005. After the court issues the writ of execution, give it to the officer and direct him or her to go to the property on which you want the writ levied. The officer has authority to enter any place except a dwelling to seize goods pursuant to a writ of execution. Silverman v Stein, 242 Mich 64, 217 NW 785 (1928) (detached garage is not part of home for purpose of levying execution). Indeed, if goods that were available for levy are lost because the officer fails to levy the execution, the officer is liable to the judgment creditor for damages. Beard v Clippert, 63 Mich 716, 30 NW 323 (1886). The officer may require you to provide an indemnity bond (see form 10.18). MCL 600.6009. The court officer should first attempt to collect the amount of the judgment in money. It is less costly, quicker, and requires less work than collecting in property. However, if the debtor does not cooperate with payment, the officer should select property, take an inventory, and have the debtor sign the inventory. Even well-run sheriff’s sales often recover only 10 to 20 percent of the retail value of the goods, so do not be stingy in selecting the debtor’s goods. Take at least five times the market value. Two disinterested persons must appraise the property. MCL 600.6025. 2-6 © 2013 The Institute of Continuing Legal Education The Nuts and Bolts of Asset Seizures (Execution Writs) The court officer should have identification and display it. Service can be done on holidays and Sundays, but not if the defendant is going to or from a place of worship. Service is not limited to the 8:00 a.m. to 8:00 p.m. limitations in the Fair Debt Collections Practices Act, as court officers are generally not debt collectors under that act. If the debtor is a corporation, all assets are subject to a levy; there are no exemptions. However, individual debtors are allowed exemptions. See MCL 600.6023. With individual debtors, the court officer should still levy the execution on goods but must give the individual 10 days to pick out the exemptions. With inventory and fixtures, the debtor is entitled to a $1,000 exemption at the market value. Id.; MCL 600.6026(1). You might have to assist the court officer in locating an adequate storage space. This space should also be suitable for holding the sale so that you can minimize movement of the levied goods. You or the court officer should hire sufficient vehicles and persons to remove the goods. Post notices in three public places in the city or township where the sale is to be held at least 10 days before the sale. MCL 600.6031. If nobody shows, reschedule the sale. Invite bulk bidders. Personal property must be present at a sale. The court officer must offer the goods in lots calculated to bring the best price. MCL 600.6032. As for personal property that is subject to a security interest or prior liens, MCL 600.6017(3) includes “[g]oods or chattels pledged by way of mortgage or otherwise” as property that may be levied on, subject to the lien, mortgage, or pledge. See also Munger v Sanford, 144 Mich 323, 107 NW 914 (1906). The procedure in such execution sales is to notify the lienholder of the time and place of the sale and to announce at the sale that only the interest of the judgment debtor is being sold. A purchaser at the sale must pay the prior lien or may arrange with the lienholder for financing. The officer should next pay the expenses of the sale, including his or her fee, and then pay the unpaid balance of the judgment to the court or you. Ask the officer to give you an itemization of all the expenses. If the judgment is satisfied from the execution sale, file a satisfaction of judgment. If the sale brings in more than is needed to satisfy the judgment and expenses, the court officer must remit the difference to the judgment debtor. MCL 600.6044. Real property. After the court issues a writ of execution against real property, you should send a letter to the sheriff of the county where the real estate is located (see form 10.20) along with the writ (form 10.14) and a proposed notice of levy on real estate to be filed with the register of deeds to perfect a lien (form 10.21). You must submit a fee for handling the filing and mileage fee to the sheriff and a statutory filing fee (currently $14 for the first page and $3 for each additional page) to the register of deeds to record a lien on the property. Other fees may exist, depending on what you are filing. Check with the register of deeds for these fees. After recording the notice of levy, the sheriff should send you a copy of it with the liber and page numbers where it is recorded. If the debtor refuses to pay, you need to get an appraisal of the real estate (see form 10.22). The sheriff sometimes sends a notice to the debtor at this point that an appraisal is being obtained on the debtor’s property and that the property will be auctioned off if the debtor does not satisfy the judgment within 60 days. © 2013 The Institute of Continuing Legal Education 2-7 Creditors' Rights 2013, June 6, 2013 The next step is to begin the notification procedure for the sale. The sheriff or you must prepare a notice of sale (see form 10.23). You must both publish and post notices of the sale. Notices must be displayed in three places in the county at least six weeks before the sale and must be published in a newspaper once a week for six weeks before the sale. The notice must include a real estate description. MCL 600.6052. You should prepare certificates for the posted notices and obtain an affidavit of publication from the newspaper publisher (see form 10.24). The statute does not specify whether the notice must be published in a general circulation or a legal newspaper; I prefer legal newspapers because they are able to assist attorneys with wording and to supply affidavits of publication. The property must be sold between 9:00 a.m. and 4:00 p.m. at the location of the circuit court. MCL 600.6053. If the sheriff adjourns the sale, the sheriff must publish a notice in the same newspaper where the notice for the sale was published and post a notice at the location where the sale was to be held. MCL 600.6052(3). At the sale, the court officer should read the information from the notice of the sale, including the description. The court officer must give each purchaser a certificate of purchase at the sale and record a certificate with the register of deeds within 10 days after the sale. MCL 600.6055. If the property is not redeemed within a year, the purchaser acquires the purchased interest in the property three months later. See MCL 600.6062, .6063. If the property is redeemed, you should send a letter to the sheriff (see form 10.25) telling him or her to cancel the sale and release the lien (see form 10.26). An agreement for release of levy (see form 10.27) could also be used to inform the sheriff or court officer. III. Working with the Deputy Sheriff or Court Officer - A Teamwork Approach If you have found a deputy sheriff or court officer who is willing to levy a writ of execution, do the following to ensure a successful collection: 1. Obtain the writ (SCAO form MC 19) and the indemnity bond, if needed. 2. Give the writ to the officer and work with the officer contact the defendant/ debtor. If the debtor is a corporation, no exemptions are allowed, but if the debtor is an individual, the sheriff should tag the goods as under levy and give the debtor 10 days to choose the exemptions. If you are dealing with inventory and fixtures, the debtor is entitled to exempt $1,000 worth of items. (Items must be assessed at market value.) MCL 600.6023(1)(b), .6026(1). 3. Locate an adequate storage space and either rent it or obtain its use. This space should also be suitable for holding the sale. Hire sufficient vehicles and strong bodies to remove the nonexempt goods and remove them under the sheriff’s supervision. A well-run sheriff’s sale will recover at the most 10–20 percent of the retail value of the goods. Therefore, do not be stingy in selecting the debtor’s goods. Although you may leave the debtor with something if you feel you have taken enough, you are under no obligation to stint. If you must err, err on the side of your client. 4. Ten days before the sale, post a notice of sale in three public places in the city or township where the sale is to be held. After posting, prepare an affidavit of posting for the officer to sign and file with the court. See MCL 600.6031. Posting is 2-8 © 2013 The Institute of Continuing Legal Education The Nuts and Bolts of Asset Seizures (Execution Writs) sufficient to comply with statutory requirements, but you should also specifically invite wholesalers or other likely purchasers to attend the sale. 5. Conduct the sale on the posted date. Remember that although the sheriff is obligated to sell items in lots that are calculated to bring the best price, MCL 600.6032, the officer is neither required to bring a particular price nor liable for failing to get a certain price. 6. After the sale, the officer should first pay all secured creditors whose interests are properly perfected. See MCL 440.9101 et seq. The officer should then pay the expenses of the sale, including the officer’s fee. Finally, the officer pays the unpaid balance of the judgment to the court. Any overage (and if there is any, write me a letter, because I have never heard of there being one) goes back to the debtor. The court should remit your client’s money to you. You should then deduct your fee and remit the balance to your client. 7. If the judgment is paid in full, file a satisfaction of judgment. If not, you might have to wait awhile before attempting further collection efforts. A business debtor that has experienced this ravaging by Attila the Creditor is not likely to have much left from which to collect. You will then go off to a corner and huddle nervously, waiting for bankruptcy to be filed and for the trustee to sue your client and to set aside the preference. You will be pleased to note that if such a suit materializes, a creditor’s lien on a levy is effective from the date of the levy. See Mary v Lewis, 399 Mich 401, 249 NW2d 102 (1976). The date of levy establishes the priority of claims of other liens and secured creditors under Article 9 of the Uniform Commercial Code. For further discussion of execution writs, see Steven A. Harms, Handling the Collection Case in Michigan: A Creditor’s Guide ch 10 (ICLE 4th ed). © 2013 The Institute of Continuing Legal Education 2-9 The Nuts and Bolts of Asset Seizures (Execution Writs) Exhibit A Request and Order to Seize Property Original - Court 1st copy - Officer Approved, SCAO STATE OF MICHIGAN JUDICIAL DISTRICT JUDICIAL CIRCUIT 2nd copy - Defendant 3rd copy - Plaintiff CASE NO. REQUEST AND ORDER TO SEIZE PROPERTY Court address Court telephone no. Plaintiff name(s), address(es), and telephone no(s). Defendant name(s), address(es), and telephone no(s). v REQUEST AND VERIFICATION 1. Plaintiff received judgment against defendant for $ on . 2. The total amount of judgment interest accrued to date is $ . The total amount of postjudgment costs accrued to date is $ . The total amount of postjudgment payments made and credits to date is $ . The amount of the unsatisfied judgment now due (including interest and costs) is • $ . *Statutory interest, officer/sheriff fees, and expenses may be charged in addition to the unpaid judgment balance, according to law. 3. The plaintiff asks the court to issue an order to seize the property of the following defendant(s): Name Date of birth (if available) Name Date of birth (if available) Date Plaintiff/Attorney signature Address City Bar no. State Zip Telephone no. ORDER TO ANY SHERIFF, DEPUTY SHERIFF, OR COURT OFFICER - YOU ARE ORDERED TO: 1. Seize and sell, according to law, any of the personal property (as determined by the officer) of defendant(s) named above in the Request and Verification that is not exempt from seizure, as will be sufficient to satisfy the plaintiff's demand, costs, and any statutory fees and expenses. Personal property may include, but is not limited to motor vehicles or money, wherever located. 2. If sufficient personal property of defendant(s) cannot be found within your jurisdiction, seize and sell any of the real property of defendant(s) not exempt from seizure, as will be sufficient to satisfy plaintiff's demand, costs, and any statutory fees and expenses. 3. Collect from the sale of the property enough money to pay all of your statutory fees and statutory expenses. 4. Deposit proceeds of sale with the court plaintiff after deducting statutory fees and statutory expenses. 5. Claim and Delivery Only: Seize the property described in the attached judgment for claim and delivery and deliver to the plaintiff(s); or if the property is not found in the possession of the defendant(s), levy the value of it. 6. You must endorse the month, day, year, and hour that you receive this order, and that time is the effective date of this order. You must return this order not less than 20 days, nor more than 90 days, from the effective date. If you have begun to serve this order on or before the return date, you may complete the service and return after the return date. 7. You may not continue collecting on this order after the return date except as indicated in item 6. Bar no. Judge Date Order to be served by: Court officer/Deputy sheriff ENDORSEMENT: I certify that I received this order on at . Time Date Court officer/Deputy sheriff TO THE DEFENDANT: The person taking property must provide you with a receipt of all money paid by you and an inventory of the property taken. MC 19 (8/12) REQUEST AND ORDER TO SEIZE PROPERTY © 2013 The Institute of Continuing Legal Education MCL 600.2920, MCL 600.6002, MCR 3.106 2-11
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