Court Rules in Favor of Post-Judgment Discovery Relevant to Collection of Judgments

05.18.2016

The Iowa Court of Appeals ruled on May 11, 2016 that the District Court has extremely broad discretion in the ordering of discovery of financial information of third parties with relationships to a judgment debtor in order to assist in the judgment collection process.

Whitfield & Eddy Law represented a bank attempting to collect a judgment against a husband, and who sought information relating to the non-debtor spouse, her assets, and the assets of the company owned by husband and wife. The court found "we find nothing in our statutes or Rules of Civil Procedure that would prohibit a judgment creditor in the situation of [the bank] from seeking pertinent information concerning the financial condition and assets of the debtor's spouse or the debtor's company, especially where the debtor and his spouse have restructured their joint company ... during the course of the underlying foreclosure action.

For more information, contact attorney Jonathan E. Kramer at 515-288-6041. 

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