Legal Definitions - Nulla bona

Nulla bona is a Latin term that translates to "no goods." In the legal system, it refers to a formal declaration made by a law enforcement officer, such as a sheriff, when they are unable to find any property belonging to a debtor that can be legally seized to satisfy a court judgment.

When a court issues a judgment ordering one party (the debtor) to pay money to another (the creditor), the creditor may seek a "writ of execution." This is a court order directing the sheriff to locate and seize the debtor's assets, which can then be sold to pay off the debt. If the sheriff conducts a thorough search within their jurisdiction and finds no assets that are not exempt from seizure, they will return the writ of execution marked "nulla bona." This signifies that, for practical purposes, the judgment cannot be satisfied through the seizure of property at that time.

Here are some examples illustrating the application of "nulla bona":

• Individual Debtor with Limited Assets:

  Imagine a situation where a person, Ms. Chen, loses a civil lawsuit and is ordered by the court to pay $25,000 to the plaintiff. The plaintiff obtains a writ of execution, instructing the sheriff to seize Ms. Chen's property to satisfy the debt. The sheriff investigates and finds that Ms. Chen lives in a rented apartment, drives an older car that is fully financed with no equity, and has only a small amount of money in a bank account that falls below the minimum threshold for seizure. She owns no real estate, valuable collectibles, or other significant assets.

  In this scenario, the sheriff would return the writ of execution with a "nulla bona" endorsement. This indicates that despite the court judgment, there are no ascertainable or legally seizable assets belonging to Ms. Chen within the sheriff's jurisdiction that could be used to satisfy the $25,000 debt.

• Defunct Business:

  Consider a small landscaping company, "Green Thumb Services LLC," which goes out of business owing $10,000 to a plant nursery for unpaid supplies. The nursery obtains a court judgment and a writ of execution. When the sheriff visits the former business address, they find the premises empty. All equipment has been repossessed by other creditors or sold off, and the company's bank accounts have been closed or emptied. There are no remaining physical assets or funds belonging to "Green Thumb Services LLC" within the jurisdiction.

  The sheriff would issue a "nulla bona" return, formally declaring that the defunct business has no remaining assets that can be seized to satisfy the nursery's judgment.

• Assets Protected by Law:

  Suppose Mr. Davies owes a substantial sum after a court judgment. He owns a modest home and has a retirement savings account. The creditor attempts to collect the debt through a writ of execution. The sheriff investigates and discovers that Mr. Davies' home equity is protected by state homestead laws up to a certain value, meaning that portion of his home's value cannot be seized. Furthermore, his retirement account is also legally exempt from collection under state and federal laws. He has no other significant non-exempt assets.

  Even though Mr. Davies possesses *some* assets, the sheriff would return the writ as "nulla bona" because there are no *legally seizable* assets available to satisfy the judgment within the jurisdiction. This highlights that "no goods" specifically refers to no *collectible* or *non-exempt* goods.