Who Pays the NY City Marshal to Collect Your Judgment? 
The whole idea behind chasing bad debt is to cut your losses. Spending additional monies or legal fees to collect bad debt is often compared to throwing good money after bad. Although your collection attorney may be working on a contingency fee, you may need to enlist the services of the City Marshal to collect your judgment. If that’s the case, who pays the NY City Marshal to collect your judgment?
If there is a fee associated with using a City Marshal, why use them?
Marshals are independent business owners like you and I with an eye towards the bottom line. The Marshal’s income depends upon developing profitable business, performing the work and getting paid (monies owed you plus their fees). Thus the Marshal is “incentivized” to collect.
What is the initial cost to use the Marshal?
Fees paid to the Marshal with the execution are nominal ranging from $50.00 to $250.00 depending upon what you ask the Marshal to do.
As an example: say you froze the the judgment debtor’s bank account and requested the Marshal to levy at the bank, the cost to send the execution to the Marshal is $50.00 – $100.00. (You, the judgment creditor, would pay the costs associated with issuing the execution to the City Marshal).
How does the Marshal get paid and who pays the NY City Marshal to collect your Judgment?
In addition to nominal costs associated with the issuance of an execution, the Marshal makes their money by collecting the judgments. The Marshal is entitled to 5% (poundage) of whatever they collect (plus nominal statutory fees).
Let’s say your customer has $100,000.00 in their bank account and your judgment is for $100,000.00, approximately $5,000.00 would go to the Marshal as poundage (the 5%) and $95,000.00 would be applied towards the judgment and sent to you. You would still be entitled to collect the balance of the judgment plus post judgment interest at 9%.
It’s important to note that you would not be responsible for the ( 5%) poundage to the City Marshal. The 5% poundage is tacked onto the judgment amount and is paid by the judgment debtor NOT the creditor.
Can I ever be responsible for the fees owed to the Marshal?
Oh yes! Because the Marshal’s fees are tacked on to the judgment amount and thereby increase the amount off the judgment, the debtor often looks to circumvent the Marshal and make a direct deal with you. BEWARE! If that’s the case, you will be responsible to pay the City Marshal from your pocket. You will be responsible to pay the NYC Marshal their 5% poundage plus whatever additional fees that have accrued.
