Enforcement Options When They Won't Pay

Winning a court judgment is only half the battle - collecting on it can be even more challenging. Studies show that 70-80% of small claims judgments go uncollected, often because creditors don't know their enforcement options. This comprehensive guide explains every tool available to collect money owed to you, from wage garnishments and bank levies to property liens and debtor examinations, including state-by-state exemption limits and step-by-step procedures. The U.S. Courts website provides official information about federal court procedures.

Understanding Judgment Enforcement

Once you win a judgment, you become a "judgment creditor" and the person who owes you becomes a "judgment debtor." The court doesn't automatically collect money for you - you must take action to enforce the judgment using legal tools.

Enforcement Tools Overview

Tool	What It Does	Best For	Typical Cost
Wage Garnishment	Employer withholds wages	Employed debtors	$25-75
Bank Levy	Seizes bank account funds	Debtors with savings	$50-150
Property Lien	Attaches to real estate	Property owners	$15-50
Till Tap	Seizes cash from business	Cash businesses	$100-300
Asset Seizure	Sheriff takes property	Valuable assets	$100-500+
Debtor Exam	Court-ordered questioning	Finding hidden assets	$25-75

Before Starting Enforcement

Before spending money on enforcement tools, take these preliminary steps:

Step 1: Send Final Demand

Send a demand letter to the judgment debtor that includes:

• Copy of the judgment
• Current amount owed (principal + interest + costs)
• Payment deadline (typically 10-14 days)
• Warning of enforcement actions if not paid
• Offer of payment plan if appropriate

Step 2: Research the Debtor

Gather information to target the right enforcement tools:

• Employment: Where do they work? (for wage garnishment)
• Bank accounts: Where do they bank? (for levy)
• Real estate: Do they own property? (for lien)
• Vehicles: What cars do they own? (for seizure)
• Business interests: Do they own a business? (for till tap)

Wage Garnishment

Wage garnishment is often the most reliable enforcement tool because it provides ongoing payments until the judgment is satisfied.

How Wage Garnishment Works

1. You obtain a Writ of Execution or Wage Garnishment Order from the court
2. You serve the writ on the debtor's employer
3. Employer begins withholding a portion of each paycheck
4. Employer sends withheld amounts to you (or the court)
5. Continues until judgment is paid in full

Federal and State Limits

Federal law (Consumer Credit Protection Act, 15 U.S.C. 1673) limits garnishment to the lesser of:

• 25% of disposable earnings, OR
• Amount by which weekly disposable earnings exceed 30× federal minimum wage

State Wage Garnishment Limits

State	Maximum Garnishment	Special Protections
California	25% or amount over 40× minimum wage	Head of household may claim exemption
Texas	No wage garnishment allowed	Exception: child support, taxes, student loans
New York	10% or amount over 30× minimum wage	Must leave $435/week minimum (2024)
Florida	25% (but head of household exempt)	Head of household: 100% exempt
Pennsylvania	No wage garnishment allowed	Exception: taxes, child support, student loans
Illinois	15% or amount over 45× minimum wage	Greater protection than federal law
North Carolina	No wage garnishment allowed	Exception: taxes, child support, student loans
South Carolina	No wage garnishment allowed	Exception: taxes, child support

Bank Account Levy

A bank levy allows you to seize funds directly from the debtor's bank account.

How Bank Levy Works

1. Obtain Writ of Execution from court
2. Give writ to sheriff/marshal with bank information
3. Sheriff serves levy on bank
4. Bank freezes account and sends funds to sheriff
5. After holding period, funds are released to you

Key Bank Levy Considerations

• One-time grab: Levy captures only funds in account at moment of service
• Need bank info: Must know bank name and branch (or use debtor exam to find out)
• Protected funds: Social Security, disability, and certain other benefits may be exempt
• Joint accounts: May only be able to take debtor's share
• Timing: Serve early in month when accounts are fuller (after payday, rent payments)

State Bank Account Exemptions

State	Exemption Amount	Notes
California	$1,788 minimum	Adjusted annually
New York	$2,850 minimum	Higher for wages deposited
Texas	Varies by source	Wages exempt for 60 days after deposit
Florida	Head of household wages protected	Must be traced to wages
Federal (all states)	2 months of federal benefits	Social Security, VA, SSI automatically protected

Property Liens

Recording a lien against real property is one of the most powerful enforcement tools because it ensures payment when the property is sold or refinanced.

How Property Liens Work

1. Obtain Abstract of Judgment from court clerk
2. Record abstract with county recorder where debtor owns property
3. Lien attaches to all real property in that county
4. Lien must be paid when property is sold or refinanced
5. Lien remains valid for 10-20 years (varies by state)

Property Lien Benefits

• Low cost: Recording fee typically $15-50
• Passive: No ongoing action required
• Secure: Real estate is difficult to hide
• Blocking effect: May prevent refinancing or sale until paid
• Interest continues: Judgment accrues interest while lien is recorded

State Property Lien Rules

State	Lien Duration	Homestead Exemption
California	10 years (renewable)	$300,000-$600,000+
Texas	10 years (renewable)	Unlimited (homestead)
Florida	10 years	Unlimited (homestead)
New York	10 years (renewable)	$179,975-$450,000 by county
Illinois	7 years (renewable)	$15,000

Debtor Examination

A debtor examination (also called judgment debtor exam or supplemental proceeding) is court-ordered questioning to discover the debtor's assets.

How Debtor Exams Work

1. File motion for debtor examination with court
2. Court issues order requiring debtor to appear
3. Debtor must answer questions under oath about:
• Bank accounts and financial institutions
• Employment and income sources
• Real estate and vehicles owned
• Other assets (jewelry, investments, collectibles)
• Debts owed to the debtor by others
4. Failure to appear may result in contempt/arrest warrant

Effective Debtor Exam Questions

• Where do you bank? List all accounts opened in last 2 years
• Who is your employer? What is your salary?
• Do you own any real estate? Where?
• What vehicles do you own? Where are titles?
• Does anyone owe you money?
• Do you have any retirement accounts?
• Have you transferred any property in the last year?
• What is your spouse's name and occupation?

Asset Seizure and Sale

The sheriff can seize and sell the debtor's personal property to satisfy your judgment.

Commonly Seized Assets

• Vehicles: Cars, boats, motorcycles (if not exempt)
• Equipment: Tools, machinery, business equipment
• Inventory: Business inventory and supplies
• Collectibles: Art, jewelry, antiques
• Electronics: Computers, equipment (if not exempt)

Personal Property Exemptions

Every state exempts certain personal property from seizure:

State	Vehicle Exemption	Personal Property
California	$3,325 equity	Household items, tools of trade
Texas	1 vehicle per licensed driver	$100,000 total personal property
Florida	$1,000 equity	$1,000 additional personal property
New York	$4,000 equity	Varies by item type

Other Enforcement Tools

Till Tap (Keeper Levy)

For business debtors, a till tap places a sheriff at the business to collect cash as it comes in:

• Sheriff stays at business for specified period (typically 1-8 hours)
• Collects all cash received during that time
• Effective for restaurants, retail stores, cash businesses
• Cost: $100-300+ depending on duration

Assignment Orders

Court orders third parties to pay money owed to the debtor directly to you:

• Rent from debtor's tenants
• Accounts receivable from debtor's customers
• Payments on loans debtor made to others
• Commissions or royalties owed to debtor

License Suspension

Some states suspend licenses for unpaid judgments:

• Driver's license: For unpaid auto accident judgments
• Professional licenses: May be affected in some states
• Business licenses: May be denied for judgment debtors

Credit Reporting

Judgments affect credit reports and can motivate payment:

• Judgments may appear on credit reports for 7 years
• Major credit bureaus no longer include civil judgments automatically
• Specialty reports (tenant screening, employment) may still include
• Paid judgments show as "satisfied" - better than unpaid

Interest on Judgments

Your judgment continues to accrue interest until paid:

State Post-Judgment Interest Rates

State	Interest Rate	State	Interest Rate
California	10%	New York	9%
Texas	Prime + 5%	Florida	Varies (statutory rate)
Illinois	9%	Ohio	Varies

When the Debtor Files Bankruptcy

Bankruptcy can stop collection and discharge the debt:

• Automatic stay: All collection must stop immediately upon filing
• Chapter 7: Debt may be discharged (eliminated) in 3-4 months
• Chapter 13: Debtor pays portion over 3-5 years
• Secured debt: Liens survive bankruptcy and attach to property
• Non-dischargeable debts: Some debts (fraud, willful injury) cannot be discharged

Frequently Asked Questions

How long is my judgment valid?

Judgment duration varies by state, typically 5-20 years, and most can be renewed. California: 10 years renewable. New York: 20 years. Texas: 10 years renewable. Check your state's specific rules and renew before expiration.

Can I enforce a judgment from one state in another state?

Yes, through a process called "domestication." Register your judgment in the new state using the Uniform Enforcement of Foreign Judgments Act (adopted by most states). Then use that state's enforcement tools.

What if the debtor hides assets or transfers property?

Fraudulent transfers can be voided under the Uniform Fraudulent Transfer Act. You can sue to recover assets transferred to avoid paying judgments. Courts look suspiciously at transfers to family members or for inadequate value after a judgment.

Should I use a collection agency?

Collection agencies typically take 25-50% of amounts collected. Consider using one if: you've exhausted easy enforcement options, the debtor has assets but is evasive, you don't want to spend time on enforcement, or the judgment is aging.

What if the debtor has no assets?

This is called being "judgment proof." Options include: wait for debtor's circumstances to improve, record a property lien (in case they buy property later), renew the judgment before expiration, or write off as uncollectible for tax purposes.

Can I recover my enforcement costs?

Yes, in most states you can add reasonable enforcement costs to the judgment balance. Keep receipts for filing fees, service costs, and other enforcement expenses.

Enforcement Strategy Checklist

• Send final demand letter with payment deadline
• Research debtor's employment, banking, and property
• Record property lien in all counties where debtor owns property
• If employed: pursue wage garnishment (check state limits)
• If bank accounts known: pursue bank levy
• If assets unknown: schedule debtor examination
• Calculate interest and add enforcement costs to judgment
• Calendar renewal deadline before judgment expires
• Consider collection agency for difficult cases