§3203 Execution

Summary

A person’s nonexempt property can be taken and sold to pay a federal judgment. Wages that are still with the employer are not taken. Property owned with others can be seized only as state law allows. When property is seized under a writ, the United States gets a lien from the time of the seizure that covers the judgment, costs, and interest and beats later claims. If the U.S. asks in writing, a court can issue a writ of execution. The writ lists the case, amounts owed, and the debtor’s name and address, and it tells the U.S. marshal to seize and sell enough nonexempt property to cover the judgment. Special writs can order delivery of specific personal or real property or, if that is impossible, sale to recover its value. The marshal must record when a writ is received, what was seized, and the costs, and must report back to the court. If the debtor dies after a writ is issued, the lien still applies against the estate or heirs up to the value they receive. The court can appoint a receiver if the property is in danger. The marshal may return property before sale if the debt is paid or a bond is posted with approved sureties; after a sale there is no right to redeem. Real property is normally sold after 90 days from levy (30 days in urgent cases), with public notice once a week for at least 3 weeks and first notice at least 25 days before sale; the marshal must also notify known interested parties at least 25 days before sale. Personal property is normally sold after 30 days, with notice posted for 10 days and mailed to interested parties. Bidders may have to put up to 20 percent cash. If a sale does not cover the judgment, the marshal can seize other property under the same writ. Proceeds first pay any exempt amounts back to the debtor, then sale costs, then the balance to the U.S.; any extra beyond U.S. claims goes to the debtor.