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Supplementary Proceedings

property, debtor and judgment

SUPPLEMENTARY PROCEEDINGS are in the nature of a civil and equitable action whereby property of a judgment debtor may be reached, where said property cannot be taken under the usual process of execution; its object primarily is to discover the property of a judg ment debtor which is subject to execution, and to learn if the debtor possesses or controls any property which is applicable to the satisfaction of the judgment. Any creditor who has re duced his claim to a judgment and issued exe cution thereon may institute supplementary pro ceedings, and the first creditor who does so and prosecutes the proceeding with due diligence obtains a prior lien on the assets of the debtor. Supplementary proceedings exist and are regu lated according to the statutes in each State; sotne jurisdictions afford much the same remedy through other means; many States do not allow the remedy against corporations. In some ju risdictions certain classes of property are ex empt, as, for example, wages earned by the debtor within a specified time next before the institution of the proceedings, the period vary ing with the statute. Orders for examination

in supplementary proceedings are granted by a judge having jurisdiction according to the statutes under which the right to maintain the proceeding is derived and may be held before a judge or referee appointed for the purpose; this order must be served upon the person to be ex amined and it may be set aside on account of any defect but otherwise must be complied with. If, from the examination, it appears that the judgment debtor has in his possession or under his control property or money by which a judg ment may be satisfied, the judge may, in his discretion, direct the debtor or person holding said property for him to deliver the property to a receiver for the purpose of applying same to the judgment. One who disregards or diso beys the orders of the judge in these proceed ings is subject to punishinent for contempt.