Debtor-Creditor – priority

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Wisconsin Supreme Court

Civil

Debtor-Creditor – priority

Serving a supplemental proceedings order does not create a priority in collecting money judgments.

“We conclude that supplemental proceedings under ch. 816 are a discovery tool in aid of judgment collection. Decade’s serving Collier with an order to appear for supplemental proceedings did not give rise to a blanket lien on all of Collier’s personal property that prevented SB1 from pursuing collection. A judgment creditor obtains an interest in a judgment debtor’s identified, non-exempt personal property superior to other unsecured creditors when it dockets its money judgment, identifies specific personal property and levies that property. Levying may be accomplished by at least three different means: (1) by executing against specific personal property with the assistance of a sheriff; (2) by serving the garnishee defendant in a garnishment action to seize specific property in the hands of the garnishee defendant; or (3) by obtaining an order to apply specific personal property to the satisfaction of the judgment, which a creditor may do with the assistance of a supplemental receiver. Wis. Stat. § 815.05(6) (2011-12); Wis. Stat. § 812.01; Wis. Stat. § 816.08.”

“Here, SB1 was the first judgment creditor with a docketed money judgment to levy specific, non-exempt personal property of Collier. It did so by obtaining a court order to turn over specifically identified property to its receiver. Accordingly, we affirm the decision of the court of appeals that concluded that SB1 has priority over Decade in regard to the specific personal property SB1 identified and levied. However, insofar as the decision of the court of appeals can be read to recognize a blanket lien in favor of SB1 that prevents other creditors from pursuing collection from Collier’s personal property, we modify that decision because no blanket lien exists.”

Affirmed as modified.

2011AP2597 Associated Bank N.A. v. Collier

Roggensack, J.

Attorneys: For Appellant: Prange, Roy L., Jr., Madison; Bailey-Rihn, Valerie, Madison; For Respondent: Van Lieshout, John M., Milwaukee; Levin, Neal H., Chicago