A judgment creditor cannot walk into a bank and freeze an account. Someone with statutory authority has to do it, and in New York City that someone is either the Sheriff of the City of New York or one of the city marshals appointed by the Mayor. Choosing between them, and understanding what their fee will cost, shapes the economics of every collection file. The attorneys at Warner & Scheuerman factor the enforcement officer decision into strategy from the outset, because poundage comes off the top of every dollar recovered and the wrong choice can cost a creditor real money on an otherwise clean levy.
Who is authorized to enforce a money judgment in New York?
Outside New York City, the county sheriff is the enforcement officer. Inside the five boroughs, both the City Sheriff and city marshals have authority to execute money judgments.
City marshals are a distinctive New York City institution. They are appointed by the Mayor to renewable terms, are not city employees, operate private offices, and are supervised by the New York City Department of Investigation. Their number is capped by statute, and in recent years the roster has run well below the authorized maximum, with only a few dozen marshals serving the entire city.
The Sheriff of the City of New York is part of the Department of Finance and handles executions along with a broad range of other civil and criminal enforcement duties.
What is poundage and how much does it cost?
Poundage is the enforcement officer’s statutory fee for collecting money on an execution, calculated as a percentage of the amount collected. CPLR 8012(b) sets the sheriff’s poundage at five percent of the sum collected.
City marshals are governed by New York City Civil Court Act section 1609, which likewise fixes marshal poundage at five percent of the amount collected. Marshals also charge statutory fees for mileage, service, and other steps, and those are separate from poundage.
The fee comes out of the recovery, not in addition to it, which means a $100,000 collection nets the creditor roughly $95,000 before the creditor’s own legal fees. On a judgment where the debtor’s available assets barely exceed the cost of pursuing them, that five percent can decide whether the file is worth working.
When is poundage owed even if the officer collects nothing?
This is the trap that surprises creditors. Poundage can be owed on a settlement reached after a levy, not only on money the officer actually collects.
CPLR 8012(b)(2) provides that where a settlement is made after a levy by virtue of an execution, the sheriff is entitled to poundage upon the value of the property levied upon, not exceeding the sum at which the settlement is made. The rationale is that the levy produced the payment, so the officer earned the fee.
Where an execution is vacated or set aside, CPLR 8012(b)(3) allows the court to fix poundage in its discretion and direct which party pays it.
The practical lesson is sequencing. A creditor who serves a levy on Monday and settles on Wednesday may owe poundage on the settlement amount. Where settlement discussions are genuinely active, holding the execution briefly is worth considering. Where the debtor is likely to move money, the levy is worth the fee.
How does a creditor deliver an execution and get it served?
The steps are administrative but unforgiving of error.
- Obtain the judgment and, if the enforcement will occur in a different county, a transcript of judgment from the clerk of the court where the judgment was entered.
- Prepare the execution, which counsel drafts rather than the court issuing. It must identify the judgment, the parties, the amount due with accrued interest, and the property or garnishee targeted.
- Deliver the execution to the sheriff or marshal, along with the required advance fees and a letter of instruction specifying the bank, branch, employer, or property.
- Confirm the delivery date in writing, since CPLR 5234(b) fixes priority among competing creditors by the order of delivery to the enforcement officer.
- Track the return. An execution against personal property is generally returnable within sixty days of delivery unless extended.
Advance costs vary. Marshals typically require a deposit covering service and mileage before acting, and those amounts are modest relative to poundage but must be funded upfront.
How does the Warner & Scheuerman approach choose between a sheriff and a marshal?
By matching the officer to the task and the borough. Marshals operate as private offices with varying practices, caseloads, and responsiveness, and a marshal who handles bank levies efficiently in Queens may not be the right choice for a commercial eviction in the Bronx. The Department of Investigation publishes the roster of current marshals with their office locations, which is the starting point.
The City Sheriff is often the better fit for executions involving real property sales, seizures of vehicles, and matters where a public agency’s institutional standing carries weight.
Where the debtor’s assets sit outside the five boroughs, the county sheriff for that county is the correct officer, and creditors chasing a debtor with a Manhattan business and a Suffolk County house will use both.
Enforcement officers do the work that turns a judgment into money, and their fee structure is fixed by statute rather than negotiable. Understanding when poundage attaches, particularly on post-levy settlements, is what keeps a five percent charge from becoming an unwelcome surprise. Warner & Scheuerman represents judgment creditors in New York post-judgment enforcement and manages the execution process from delivery through return. Contact the firm through wslaw.nyc to discuss the most cost-effective path to collecting your judgment.