The court or judge may order any property of the judgment debtor or due to the judgment debtor, not exempt from execution, to be applied toward the satisfaction of the judgment; but if it appear that any person alleged to have property of the judgment debtor or to be indebted to the judgment debtor claims an adverse interest in the property or denies the debt, such interest or debt shall be recoverable only in an action against such person by the receiver; and a transfer or other disposition of such property or interest may be restrained till a sufficient opportunity be given to the receiver to commence the action and prosecute the same to judgment and execution or until security therefor shall be given as ordered.
816.08.Property to be applied to judgment.
Ch. 816: Remedies Supplementary to Execution · Last amended 1993 · Last verified July 15, 2026
In one sentenceSection 816.08 lets a court order a judgment debtor’s nonexempt property applied to the judgment, but sends any dispute over a third party’s adverse claim to that property, or a denial of debt owed to the debtor, into a separate action by the receiver, with the property frozen in the meantime.
Full Text of Section 816.08
Plain-English Summary
Once a debtor’s property surfaces in supplementary proceedings, section 816.08 lets the court order it applied toward the judgment. That authority reaches any property of the debtor, or property due to the debtor, that is not exempt from execution.
Complications arise when a third party is involved. If someone alleged to hold the debtor’s property, or to owe the debtor a debt, claims an adverse interest in that property or denies the debt, the court cannot resolve that dispute on the spot. Section 816.08 instead requires it to be settled in a separate action against that third party, brought by the receiver. In the meantime, the section lets the court restrain a transfer or other disposition of the disputed property or debt, either until the receiver has had enough opportunity to bring and prosecute that action to judgment and execution, or until adequate security is posted as the court orders.
Frequently Asked Questions
Can a Wisconsin court order a debtor’s property applied directly to the judgment?
Yes. Section 816.08 lets the court order any nonexempt property of the debtor, or due to the debtor, applied toward satisfying the judgment.
What happens if a third party claims they own the property, not the debtor?
Section 816.08 requires that adverse claim to be resolved only through a separate action against that person, brought by the receiver, rather than decided within the supplementary proceeding itself.
What if the third party denies owing the debtor any debt at all?
The same rule applies. Section 816.08 sends a denied debt into a separate action by the receiver, just as it does an adverse claim to property.
Can the property be moved or sold while that separate action is pending?
Not necessarily. Section 816.08 lets the court restrain any transfer or disposition of the property or debt until the receiver has had sufficient opportunity to bring and prosecute the action, or until security is given as ordered.
Who brings the separate action against a third party under this section?
Section 816.08 assigns that role to the receiver, tying back to the receiver appointment authorized under section 816.04.
Amendment History
History: Sup. Ct. Order, 67 Wis. 2d 585, 761 (1975); Stats. 1975 s. 816.08; 1993 a. 486.
Source & verification. Section text and official notes are
reproduced verbatim from the Wisconsin Statutes, published by the
Wisconsin Legislature (Legislative Reference Bureau). Last verified July 15, 2026.
· Official source
Also known as: wisconsin apply debtor property to judgmentthird party adverse claim supplementary proceedingsreceiver separate action wisconsin debtor propertyrestraining transfer of disputed property wisconsin