This study explores the role of technological innovations in enhancing the automation of fund garnishment and distribution processes in debt recovery. The focus is on how modern digital solutions can optimize the allocation of funds obtained from the sale of a debtor’s assets through public auctions. The research investigates how automated systems can manage the distribution of execution earnings among creditors—both secured and unsecured—based on established legal guidelines and creditor priorities. It highlights the importance of technological tools in addressing challenges such as creditor competition and the proportional allocation of limited funds when the proceeds are insufficient to fully satisfy all claims. By integrating advanced technologies, such as automated legal compliance systems and digital asset management platforms, the study proposes improvements to the traditional methods of fund distribution. These innovations are expected to increase accuracy, efficiency, and fairness in handling garnished funds, ensuring that judicial expenses are prioritized and remaining funds are allocated proportionally among creditors. The findings suggest that adopting comprehensive technological solutions could significantly enhance the management of fund garnishment procedures and support the development of more effective legal provisions for creditor claims.