Understanding legal terms can be difficult, but has become a necessity for business professionals. One of the common legal terms encountered in business is “fi. fa.,” but what does it mean? The term “fi. fa.” is an abbreviation of the legal term fieri facias, which in Latin means “you shall cause to be made.” In the context of business and the legal system, “fi. fa.” is a type of court order used to collect a debt.
When a court issues a “fi. fa.” order in the United States, it instructs a local sheriff or marshal to seize the debtors assets and auction them off in order to pay off the debt. In modern-day, this usually involves having the sheriff put a lien on property such as a car or a house, and then selling the property to pay for the debt. In some jurisdictions, the debtor’s wages may be garnished or the bank account frozen in order to recoup the debt.
“Fi. fa.” is an example of an execution court order, which means it is enforceable quickly and without notice to the debtor. The “fi. fa.” procedure is often used when the creditor seeks to collect a debt through legal action, as it is a faster and more efficient way to collect the debt than other procedures.
‘Fi. fa.’ for Business Professionals
Business professionals should be aware of the possible collection procedures that creditors may use to collect unpaid debts. Ignoring debts or failing to take action can lead to the creditor obtaining a “fi. fa.” order and seizing assets to pay the debts. Businesses should also be aware of the implications of having their own assets seized by creditors, so they can take the proper steps to avoid the possibility.
It is important for business professionals to have a basic understanding of how debts are collected when dealing with contracts or investments. Understanding fi. fa. and other legal terms can help them make smart decisions that can protect their business from the risks associated with unpaid debts.