What is the purpose of an examination of a judgment debtor?

The purpose of an examination of a judgment debtor is to assess the debtor's income and assets. After a judgment is obtained, a creditor may need to determine the financial situation of the debtor to understand their capacity to pay the amount owed. This examination allows the creditor to gather specific information regarding the debtor's financial status, including details about their income, employment, bank accounts, property ownership, and other assets.

This process is crucial as it helps inform the creditor of the best course of action for collecting the debt. For instance, if the debtor has substantial assets or income, the creditor may opt for enforcement measures such as garnishing wages or seizing assets. The information obtained during the examination can directly influence the strategies a creditor chooses to employ for debt collection.

In contrast, while appealing a court decision or gathering evidence for a new case may involve legal processes, they do not directly relate to the specific purpose of examining a judgment debtor. Additionally, negotiating a repayment plan may be one outcome of understanding the debtor's financial situation, but it is not the primary purpose of the examination itself. The critical goal remains the assessment of financial capacity to facilitate recovery of the owed funds.