I often speak to clients after they recover possession of their apartment, and ask whether or not they are interested in collecting on the money judgment. The response I receive is the phrase "we are putting the tenant in collection." This often means that the tenant's rent history is referred to either a collection agency or an attorney, who may start a separate proceeding agains t the tenant for the unpaid rent. Often this procedure is unnecessary.

The money judgment is a separate judgment that is entered along with the judgment of possession, in cases where a tenant has either signed a stipulation or has been ordered by the court such as a trial or a motion.

The money judgment entered in the housing proceeding is an enforceable judgment that may be used to collect against the tenant's assets or garnish their wages without commencing a separate cause of action. This judgment can be collected in a number of ways.

First, it is wise to ask your attorney to file a transcript of the judgment, which can then be filed in State Supreme Court. Many credit reporting bureaus will only check state courts and, therefore, in order for the judgment to appear on a tenant's credit report, it is not enough that the judgment is sitting in the file in the Housing Court. These docketed judgments passively enforce themselves. I have had a number of circumstances where a tenant has contacted my office months or years after the judgment was entered in Supreme Court because they are in the process of getting a car loan, a credit card, home mortgage, student loan, etc., and the judgment is creating an impasse.

Secondly, if you have information regarding the tenant's bank account either because of their past rent checks or what was listed on their initial lease application, that docketed judgment can be given to a Sheriff with instructions to serve a notice on the lending institution to freeze and then remove the assets. Even if the amount of money in the bank is less than the amount of the judgment, this will send a red flag to the tenant, who may be willing to negotiate a settlement and pay the judgment. Thirdly, information regarding the tenant's employment can also be utilized in collecting on the docketed judgment by having the Sheriff serve a notice on the employer requiring them to garnish the tenant's wages and send them to you.

The law firm that represented you in the Housing Court matter, if equipped, can also start supplemental proceedings without starting a lawsuit to collect the judgment. A subpoena can be served upon both the tenant, if their whereabouts are known, or a bank, a credit card company or an employer. The subpoena requires that person to divulge information relating to the location of the tenant's assets. The tenant can be subpoenaed to appear at a deposition. There they would have to testify and produce documents to show where their assets are, or otherwise be subject to the contempt powers of the court.

If you are unsure of the whereabouts of where your evicted tenant has gone, your attorney can send a letter to the Postmaster under the Freedom of Information Law requesting the tenant's forwarding address. Some states employ a full faith and credit status to a New York judgment. So, for example, if your tenant has either moved to California or has a bank account there, you can employ an attorney in that state who will file your money judgment in the California courts, purchase an index number and after the appropriate procedures, can attach the assets in that bank.

Each one of these procedures can certainly be commenced before the tenant is evicted. All of these procedures can be employed without starting a lawsuit. Since a collection firm or agency would operate on a contingency whereby they would take a percentage of the amount collected, you may wish to negotiate with your landlord/tenant firm to do it on an hourly basis instead. The business of enforcing judgments is a valuable tool, and should be employed as often as possible.

Stephen C. Shulman is a member of the law firm Borah, Goldstein, Altschuler & Schwartz, P.C., a NYARM associate member and can be reached at 212-965-2731.