Article 52 Enforcement of Money Judgments

Question 1

 CPLR 5201
Select the best answer.
(a)   A money judgment may be enforced against debts incurred without the State
(b)   A money judgment may be enforced against debts which are yet to become due
(c)   Both (a) and (b) are correct
(d)   Neither (a) nor (b) is correct.

Answer 1

 Answer: (c)
CPLR 5201(a) provides that a money judgment may be enforced against any debt, which is past due or which is yet to become due, whether it was incurred within or without the State. Thus, both choices (a) and (b) are correct.

Question 2

 CPLR 5201(b)
In an action arising from a medical debt, brought by a health care professional,
(a)   no property lien shall be entered or enforced against a debtor’s primary residence;
(b)   a property lien may be entered or enforced against a debtor’s primary residence;
(c)   no property lien shall be entered or enforced against a debtor’s primary residence, if the debtor is covered by Medicare;
(d)   no property lien shall be entered or enforced against a debtor’s primary residence, if the debtor is covered by Medicaid.

Answer 2

Answer (a)                                                                        (New, 2022)
Correct answer is (a) per CPLR 5201(b)

Question 3

 CPLR 5202
Where a judgment creditor has delivered an execution to a sheriff, the judgment creditor’s rights in an interest of the judgment debtor in personal property, against which the judgment may be enforced, are superior to the extent of the amount of the execution to the rights of any transferee (e.g.,purchaser)of the property, except:
(a)   a transferee who acquired the property for fair consideration before it was levied upon
(b)   a transferee who acquired the property for fair consideration after it was levied upon without knowledge of the levy, if such property was not capable of delivery
(c)   both (a) and (b) are correct
(d)   neither(a) nor (b) is correct.

Answer 3

 Answer: (c)
CPLR 5202(a) clearly indicates that both choices (a) and (b) are correct.

Question 4

 CPLR 5203
Where a money judgment is docketed with the county clerk of the county in which a judgment debtor’s real property is located, the judgment debtor cannot effectively transfer the real property against the judgment creditor’s interest except when:
1.   a purchaser pays fair consideration after the docketing
2.   the judgment was entered after the death of the judgment debtor
3.   transfer is made to a purchaser for value at a judicial sale
4.   the judgment debtor is the State or a municipality.
(a)   1 and 4,only
(b)   2 and 3,only
(c)   2, 3 and 4, only
(d)   1, 2, 3 and 4.

Answer 4

 Answer: (c)
CPLR 5203(a) states that after docketing, a transfer by the judgment debtor cannot be effective against a judgment creditor in all the instances contained in the question except for number (1). An innocent purchaser cannot exist in this instance because he is on “notice” of the judgment by virtue of the docketing in the county in which the real property is located. Thus, choice (c) is correct.

Question 5

  CPLR 5204
Select the correct statement.
(a)   The lien of a money judgment can be released only by satisfaction of the judgment.
(b)   The lien of a money judgment may be released by an undertaking given by the judgment debtor upon appeal from the judgment.
(c)   The lien of a money judgment is automatically suspended during pendency of an appeal from the judgment.
(d)   The lien of a money judgment may be released during pendency of an appeal only on consent of the judgment creditor.

Answer 5

 Answer: (b)
CPLR 5204 provides that upon motion of the judgment debtor the court may order that the lien of a money judgment be released upon the ground that the judgment debtor has given an undertaking upon appeal sufficient to secure the judgment creditor. Thus, choice (b) is correct. All other choices are unsupported by the CPLR.

Question 6

  CPLR 5205
Select all correct answers.
Which of the following property is exempt from application to the satisfaction
of a money judgment?
(a)   a sewing machine
(b)   school books used by the judgment debtor
(c)   a wedding ring
(d)   a television set
(e)   cash surrender value of a life insurance policy.

Answer 6

  Answers: (a), (b), (c), (d) and (e)
CPLR 5205(a) provides that each of the things listed in choices (a), (b), (c), (d) and (e) is exempt from application to the satisfaction of a money judgment. It should be noted that this exemption does not apply where the judgment is for the purchase price of the exempt property.

Question 7

 CPLR 5205
Which of the following is entitled to a “trust exemption” from application to
the satisfaction of a money judgment:
(a)   generally a trust established by a person other than the judgment debtor
(b)   a qualified IRA account
(c)   a 401(K) retirement account
(d)   all of the above.

Answer 7

nswer: (d)
CPLR 5205(c) provides for a trust exemption by which certain assets are exempt from application to the satisfaction of a money judgment. All of the types of assets contained in the question are specified as entitled to the trust exemption in accordance with CPLR 5205(c) (e.g., IRAs, HR-10, 40l(K), 457 plans, etc.) See 5205(c)(5) for certain exceptions.

Question 8

CPLR 5205
The portion of a judgment debtor’s earnings for personal services rendered within sixty days before, and at any time after, an income execution is delivered to the sheriff which is exempt from application to the satisfaction of a money judgment is:
(a)   thirty percent
(b)   fifty percent
(c)   fifteen percent
(d)   ninety percent.

Answer 8

 Answer: (d)
CPLR 5205(d) states that ninety percent of the judgment debtor’s earnings for personal services is exempt from an income execution. Thus, a judgment creditor may apply only ten percent of the judgment debtor’s earnings for personal services to the satisfaction of a money judgment.

Question 9

   CPLR 5205(1)(2)
Under state and federal law, which of the following is not exempt from judgment:
(a)   social security
(b)   public assistance amd emergency relief funds
(c)   unemployment insurance
(d)   workers compensation payments
(e)   life insurance proceeds.

Answer 9

Answer: (e)
Choice (e) is correct. CPLR 5205(l)(2) provides exempt payments. Although life insurance itself may be an exempt asset, death benefit proceeds paid by a life insurance policy on a deceased are not exempt payments, as amended eff. 5/13/21, per Ch. 107, L. 2021.

Question 10

  CPLR 5205
Which of the following is not personal property exempt from the satisfaction of a money judgment:
(a)   a computer
(b)   a cellphone
(c)   jewelry and art not exceeding $1,000.00 in value
(d)   a dishwasher.

Answer 10

 Answer: (d)
Choice (d) is correct.
In accordance with CPLR 5205(a) all are exempt except for a dishwasher.
Note subdivision (p) concerning Exception for Emergency Relief Funds.

Question 11

    CPLR 5206
(a)   A principal residence is completely exempt from application to satisfy a money judgment.
(b)   The exemption from application to satisfy a money judgment of a principal residence does not apply to a mobile home.
(c)   The exemption from application to satisfy a money judgment of a principal residence ends with the death of the person in whose favor the property was exempted.
(d)   A principal residence is exempt up to fifty thousand dollars for the satisfaction of a money judgment, unless the judgment was recovered wholly for the purchase price of the residence.
(e)   None of the above.

Answer 11

Answer: (e)
CPLR 5206(a) states that property, not exceeding $150,000 for certain downstate counties and $75,000 for all other counties, owned and occupied as a principal residence is exempt from application to the satisfaction of a money judgment unless the judgment was recovered wholly for the purchase price of the residence. Therefore, (d) is incorrect.
Choice (a) is incorrect since such exemption is limited to ten thousand dollars.
Choice (b) is incorrect since mobile homes may qualify as a principal residence.
Choice (c) is incorrect since CPLR 5206(b) states that the homestead exemption continues after the owner’s death for the benefit of the spouse and children. See Section for details.

Question 12

    CPLR 5207
Select the best statement(s).
(a)   None of the procedures for the enforcement of money judgments contained in Article 52 of the CPLR are applicable to a judgment against the State.
(b)   All of the procedures for the enforcement of money judgments against other judgment debtors contained in Article 52 of the CPLR are generally applicable to the State as a garnishee.
(c)   Both (a) and (b) are correct.
(d)   Neither (a) nor (b) is correct.

Answer 12

 Answer: (c)
CPLR 5207 clearly indicates that both choices (a) and (b) are correct.

Question 13

CPLR 5208
As a general rule, after the death of a judgment debtor, an execution upon a money judgment shall not be levied upon any property in which he has an interest, nor shall any enforcement procedure be undertaken with respect to such property, except upon leave of the:
(a)   New York State Supreme Court
(b)   County Court of the county where the property is located
(c)   Surrogate’s Court which granted letters testamentary or letters of administration upon the estate
(d)   court which tried the original action upon which the judgment is based.

Answer 13

Answer: (c)
CPLR 5208 provides that leave of the Surrogate’s Court which granted letters testamentary or letters of administration upon the estate is required.

Question 14

CPLR 5211
In relation to the taking of testimony in an enforcement proceeding relating to the disposition of property in which a judgment debtor has an interest:
(a)   no immunity can be conferred on a witness
(b)   immunity can be conferred on any witness other than the judgment debtor
(c)   immunity can be conferred on any witness
(d)   the granting of immunity requires the written consent of the appropriate prosecutor.

Answer 14

 Answer: (c)
CPLR 5211 provides that immunity can be conferred upon any witness.
NOTE, however, that the statute also provides that no immunity shall be conferred except upon twenty-four hours written notice to the appropriate district attorney having an official interest therein.

Question 15

  CPLR 5221
Enforcement procedures as to a judgment entered in the New York City Civil Court, where the respondent resides in New York City, shall be commenced in the:
(a)   Supreme Court, only
(b)   Supreme Court, or the New York City Civil Court
(c)   New York City Civil Court, only
(d)   New York City Civil Court, or a District Court of any adjoining county.

Answer 15

 Answer: (c)
CPLR 5221(a)(3) provides that the enforcement proceedings as to such a judgment must be commenced in the New York City Civil Court. Thus, choice (c) is correct.
NOTE that enforcement proceedings as to judgments entered in any city court, other than New York City, must be commenced in that city court, or the County Court in which the city is located, provided that the respondent resides, is employed or transacts business in the county.

Question 16

    CPLR 5222
Select all correct answers.
A notice restraining a judgment debtor or other person from transferring property in which the judgment debtor has an interest may be issued by the:
(a)   sheriff
(b)   attorney for judgment creditor
(c)   judgment creditor
(d)   clerk of the court.
(e)   appropriate support collection unit.

Answer 16

 Answers: (b), (d) and (e)
CPLR 5222(a) provides that a restraining notice may be issued by the clerk of the court, the attorney for the judgment creditor as an officer of the court or the support collection unit designated by the appropriate social services district. Choices (a) and (c) are incorrect and unsupported by the CPLR.

Question 17

   CPLR 5222(c)
A judgment creditor must not serve more than _______ restraining notices per year upon a natural person’s banking institution:
(a)   one
(b)   two
(c)   three
(d)   five.

Answer 17

Answer: (b)   
CPLR 5222(c) provides no more than two be served.

Question 18

    CPLR 5223
At any time before a judgment is satisfied or vacated, the judgment creditor may compel disclosure of all matter relevant to the satisfaction of the judgment, by serving upon any person a(n):
(a)   order to show cause
(b)   summons
(c)   demand
(d)   subpoena.

Answer 18

Answer: (d)
CPLR 5223 provides that a subpoena is used to compel disclosure. Thus, choice (d) is correct.

Question 19

   CPLR 5224(a)(3)(i)
Generally, in order for an information subpoena to be served by a judgment creditor upon a bank, to obtain information from the bank to collect against potential deposits that the judgment debtor may have at the bank, the creditor must have:
(a)   conclusive proof that the judgment debtor has a deposit account at that bank
(b)   a reasonable belief that the bank has information on a deposit account
(c)   specific account numbers in order for the bank to locate information to assist the judgment creditor
(d)   evidence that the bank has information that will assist the judgment creditor.

Answer 19

 Answer: (b)
CPLR 5224(a)(3)(i) requires generally that the judgment creditor have a reasonable belief that the party (other than the judgment debtor) receiving the subpoena has information about the judgment debtor that will assist in collecting the judgment. All other choices are unsupported by the CPLR.

Question 20

    CPLR 5225
Upon motion of the judgment creditor, where it is shown that the judgment debtor is in possession of money or other personal property in which he has an interest, the court shall order that the judgment debtor pay the money, or so much of it as is sufficient to satisfy the judgment, to the judgment creditor and, if the amount to be so paid is insufficient to satisfy the judgment, to deliver any other personal property, or so much of it as is of sufficient value to satisfy the judgment, to a designated sheriff. Notice of the motion must be served on the judgment debtor:
(a)   in the same manner as a summons
(b)   by registered or certified mail, return receipt requested
(c)   in the same manner as a summons or by registered or certified mail, return receipt requested
(d)   none of the above.

Answer 20

 Answer: (c)
CPLR 5225(a) provides that notice of the motion must be served on the judgment debtor in the same manner as a summons or by registered or certified mail, return receipt requested. Thus, choice (c) is correct.
448.        

Question 21

  CPLR 5227
Select the best answer.
A judgment creditor may enforce a judgment against:
(a)   the judgment debtor
(b)   a person indebted to the judgment debtor
(c)   a person who will become indebted to the judgment debtor
(d)   only (a) and (b) are correct
(e)   (a), (b) and (c) are all correct.

Answer 21

Answer: (e)
A judgment creditor may obviously enforce a judgment against the judgment debtor. Thus, choice (a) is correct. CPLR 5227 provides that upon a special proceeding commenced by the judgment creditor against any person who it is shown is or will become indebted to the judgment debtor, the court may require such person to pay to the judgment creditor the debt or a portion thereof upon maturity. Thus, choices (b) and (c) are also correct.

Question 22

 CPLR 5228
Select all correct answers.
Upon motion of a judgment creditor, the court may appoint a receiver who may be authorized to _________ any real or personal property in which the judgment debtor has an interest.
(a)   improve
(b)   lease
(c)   repair
(d)   sell.

Answer 22

 Answer: (a), (b), (c) and (d)
CPLR 5228 provides that upon motion of a judgment creditor, upon such notice as the court may require, the court may appoint a receiver who may be authorized to administer, collect, improve, lease, repair or sell any real or personal property in which the judgment debtor has an interest or to do any other acts designed to satisfy the judgment. Thus, choices (a), (b), (c) and (d) are all correct.

Question 23

  CPLR 5229
A judge of which court, before a judgment is entered, upon motion of the party in whose favor a verdict or decision has been rendered, may order a losing party restrained from disposing of assets:
(a)   the trial court
(b)   only the Supreme Court
(c)   only the Supreme Court or a County Court
(d)   only the Supreme Court, a County Court, or the New York City Civil Court.

Answer 23

Answer: (a)
CPLR 5229 provides that in any court, before a judgment is entered, upon motion of the party in whose favor a verdict or decision has been rendered, the trial judge may order an adverse party restrained with the same effect as if a restraining notice had been served upon him after judgment.

Question 23

   CPLR 5230
Select all correct answers.
At any time before a judgment is satisfied or vacated, an execution to levy on real or personal property may be directly issued to the sheriffs of one or more counties of the State from what courts, in the county in which the judgment was first docketed:
(a)   Supreme Court
(b)   County Court
(c)   Family Court.

Answer 23

 Answers: (a), (b) and (c)
CPLR 5230(b) clearly indicates that choices (a), (b) and (c) are all correct.

Question 24

   CPLR 5231
An income execution on a judgment to obtain payments from earnings of the judgment debtor shall be for not more than _______ percent of the earnings.
(a)   twenty
(b)   ten
(c)   fifteen
(d)   five.

Answer 24

Answer: (b)
CPLR 5231(b) states that where a judgment debtor is receiving or will receive earnings from any source, an income execution for installments therefrom of not more than ten percent may be issued. However, note that the income execution has other limitations (e.g., the judgment debtor must be left with at least thirty times the minimum wage in disposable earnings).

Question 25

  CPLR 5231(e)
Generally, the levy upon default in the case of an income execution shall be served within any county in which the person or entity from whom the judgment debtor is receiving money:
I   has an office
II   has a place of business
III   has any equipment.
Answer:
(a)   I only
(b)   II only
(c)   I or II only
(d)   I, II, or III.

Answer 25

Answer: (c)
CPLR 5231(e)

Question 26

    CPLR 5232
If personal property capable of delivery is levied upon by a sheriff in execution of a judgment, the sheriff shall:
(a)   deliver the property forthwith to the judgment creditor
(b)   take the property into his custody
(c)   cause the property to be sold, in the place where it is located
(d)   mark the property in the place where it is located, and order that it not be disturbed without his further direction.

Answer 26

Answer: (b)
CPLR 5232(b) provides that the sheriff shall levy upon any interest of the judgment debtor in personal property capable of delivery by taking the property into his custody. Thus, choice (b) is correct. All other choices are unsupported by the CPLR.
NOTE that choices (a) and (c) are incorrect because CPLR 5233 provides for a public auction of the personal property.

Question 27

     CPLR 5233
According to the CPLR, the interest of the judgment debtor in personal property obtained by a sheriff pursuant to execution or order, other than legal tender of the United States, shall be sold by the sheriff at public auction. Who is prohibited from purchasing the property at such auction?
(a)   the judgment creditor
(b)   the judgment debtor
(c)   the sheriff
(d)   all of the above.

Answer 27

 Answer: (c)
CPLR 5233(a) provides that no sale may be made to the sheriff, his or her deputy or undersheriff. Thus, choice (c) is correct. Neither the judgment creditor nor the judgment debtor is prohibited from purchasing the property at such a sale.

Question 28

 CPLR 5234
If the proceeds of a sheriff’s sale of personal property are in excess of the debt, fees, expenses and taxes, the excess shall:
(a)   be retained by the sheriff for the maintenance of his office
(b)   be paid over to the judgment debtor
(c)   be divided equally between the judgment debtor and judgment creditor
(d)   be paid into the general funds of the court.

Answer 28

 Answer: (b)
CPLR 5234 requires that any excess proceeds from the sheriff’s sale of personal property be delivered to the judgment debtor. Any other distribution would be inequitable. Thus, choice (b) is correct.

Question 29

   CPLR 5236
If real property is sold at public auction by a sheriff pursuant to an execution on a judgment, the property shall be sold:
(a)   within the county where it is situated
(b)   within the county chosen by the sheriff as most likely to bring the highest return
(c)   within the county chosen by the court as most likely to bring the highest return
(d)   within the county where it is situated, or any adjoining county.

Answer 29

 Answer: (a)
CPLR 5236(a) requires the sheriff to publicly auction real property within the county in which the real property is situated. Thus, choice (a) is correct. All other choices are unsupported by the CPLR.

Question 30

  CPLR 5250
If it appears that a judgment debtor is about to depart from the State and there is reason to believe that he has in his possession property in which he has an interest, the court may:
(a)   issue a warrant directing the sheriff to arrest the judgment debtor
(b)   issue an order directing the sheriff to seize such property in the judgment debtor’s possession, but may not direct the sheriff to arrest the judgment debtor
(c)   issue an order authorizing the judgment creditor to seize such property in the judgment debtor’s possession
(d)   none of the above.

Answer 30

   Answer: (a)
CPLR 5250 provides that under the circumstances specified in the question the court may issue a warrant directing the sheriff to arrest the judgment debtor and bring him before the court. When the judgment debtor is brought before the court, the court may order that he give an undertaking, in a sum to be fixed by the court, that he will attend before the court for examination and will obey the terms of any restraining notice contained in the order.