How to Collect on a Court Judgment

Winning a court judgment is just the first step—collecting the money you're owed is often the harder challenge. According to the American Bar Association, fewer than 50% of civil judgments are ever fully collected. The debtor (now called a "judgment debtor") may refuse to pay, hide assets, or genuinely lack the resources to satisfy the judgment. Understanding collection tools, exemptions, and procedures is essential to turning your paper judgment into actual money. This guide covers the full range of enforcement mechanisms available to judgment creditors. For official information on federal court procedures and judgment enforcement, visit the U.S. Courts website.

Understanding Your Judgment

Before beginning collection, understand what you have and the legal framework for enforcement.

Term	Definition	Significance
Judgment	Court's final decision on your claim	Legal basis for collection
Judgment creditor	You—the person owed money	Has right to use collection tools
Judgment debtor	The person who owes money	Subject to enforcement
Writ of execution	Court order authorizing collection	Required for most enforcement
Abstract of judgment	Summary document for recording	Creates property liens
Post-judgment interest	Interest accruing after judgment	Increases amount owed

Immediate Steps After Winning

Step 1: Obtain Certified Copies

• Request 2-3 certified copies of the judgment from the court clerk
• Cost: $5-$25 per copy depending on jurisdiction
• Needed for: recording liens, opening enforcement proceedings, serving demands

Step 2: Wait for Appeal Period

• Most jurisdictions: 30 days for appeal
• Some states: 60-90 days for certain cases
• Exception: You can often record liens immediately
• Enforcement typically requires judgment to be "final"

Step 3: Send Payment Demand

• Send written demand via certified mail
• Include: judgment amount, court case number, deadline (10-15 days), consequences of non-payment
• Some debtors pay voluntarily at this stage

State-by-State Post-Judgment Interest Rates

State	Interest Rate	Judgment Duration	Renewal Period
California	10%	10 years	Renewable for 10 more
Texas	5% (or contract rate)	10 years	Renewable for 10 more
New York	9%	20 years	Automatic, no renewal needed
Florida	~5.52% (variable)	20 years	Automatic, no renewal needed
Illinois	9%	7 years	Renewable for 7 more
Pennsylvania	6%	20 years	Automatic, no renewal needed
Ohio	~5-6% (variable)	5 years	Renewable for 5 more
Michigan	~3.8% (variable)	10 years	Renewable for 10 more

Collection Method 1: Wage Garnishment

Wage garnishment is often the most effective collection tool for employed debtors. Under the Consumer Credit Protection Act (15 U.S.C. § 1673), federal law limits garnishment to 25% of disposable earnings or the amount by which weekly earnings exceed 30 times minimum wage—whichever is less.

How Wage Garnishment Works

1. Obtain writ of execution: File request with court clerk ($15-$50)
2. Serve earnings withholding order: Deliver to debtor's employer
3. Employer withholds wages: Sends payments directly to you or court
4. Continue until satisfied: Garnishment continues each pay period

State Wage Garnishment Limits

State	Maximum Garnishment	Notes
Federal (default)	25% of disposable earnings	Applies unless state is more protective
Texas	Prohibited (most cases)	Only for child support, taxes, student loans
Pennsylvania	Prohibited (most cases)	Limited exceptions
North Carolina	Prohibited (most cases)	Limited exceptions
South Carolina	Prohibited (most cases)	Limited exceptions
California	25% or 40x minimum wage excess	More protective than federal
New York	10% or 30x minimum wage excess	More protective than federal

Collection Method 2: Bank Account Levy

A bank levy freezes and seizes funds directly from the debtor's bank account. This is particularly effective for collecting lump sums.

How Bank Levies Work

1. Obtain writ of execution: File with court ($15-$50)
2. Identify debtor's bank: Through debtor examination or investigation
3. Serve levy on bank: Sheriff or process server delivers writ
4. Bank freezes account: Holds funds for 10-21 days
5. Debtor claims exemptions: May contest if funds are exempt
6. Funds released to you: After exemption period

State Bank Account Exemptions

State	Protected Amount	Notes
Federal (Social Security)	2 months of benefits	Automatically protected
California	~$1,824 (75% of monthly net wages)	Debtor must claim
New York	$3,600 (wages deposited in 60 days)	Automatic exemption
Texas	~$136,000 (current wages)	Must be identifiable as wages
Florida	Wages exempt if head of family	Debtor must claim

Collection Method 3: Property Liens

Recording a judgment lien against real property is often the first collection step because it's inexpensive and protects your interest for years.

How Property Liens Work

1. Obtain abstract of judgment: Court clerk provides summary ($5-$25)
2. Record with county recorder: In every county where debtor owns property
3. Lien attaches to property: Clouds title, prevents clean sale
4. Collect when property sells: Lien paid from sale proceeds
5. Optional: foreclose on lien: Force sale of property (complex, expensive)

State Homestead Exemptions

State	Homestead Exemption	Lien Effect
Texas	Unlimited (10 acres urban, 100+ rural)	Cannot force sale of homestead
Florida	Unlimited value (½ acre urban)	Cannot force sale of homestead
California	$300,000-$600,000	Lien attaches to equity above exemption
New York	$89,975-$179,950 (by county)	Lien attaches to equity above exemption
Pennsylvania	$0 (no homestead exemption)	Full lien on property
Ohio	$145,425	Lien attaches to equity above exemption

Debtor's Examination

A debtor's examination (also called "judgment debtor examination" or "supplemental proceedings") is a court-ordered proceeding where the debtor must answer questions under oath about their assets, income, and ability to pay.

How to Conduct a Debtor's Examination

1. File application: Request examination from court ($20-$50)
2. Serve debtor: Personal service of order to appear
3. Debtor appears: Under oath before judge or referee
4. Ask questions: Employment, bank accounts, property, income
5. Request documents: Tax returns, pay stubs, bank statements
6. Obtain orders: Judge may order turnover of assets

Key Questions to Ask

• Where are you employed? What is your salary?
• What bank accounts do you have? At which banks?
• Do you own any real property? Where?
• Do you own any vehicles? Make, model, year?
• Do you have any retirement accounts, investments, or stocks?
• Is anyone indebted to you? How much?
• Do you own any valuable personal property (jewelry, art, equipment)?
• Have you transferred any property in the past year?

Other Collection Tools

Till Tap Order

If the debtor owns a cash business, you may be able to obtain a "till tap" or "keeper" order allowing the sheriff to collect cash receipts directly from the business.

• Cost: $150-$500+ for sheriff time
• Duration: Usually 8-12 hours
• Effectiveness: High for cash-heavy businesses

Assignment Order

Courts can order that money owed to the debtor be paid directly to you instead. Useful when debtor has:

• Rental income from tenants
• Accounts receivable from customers
• Commissions or royalties
• Partnership distributions

Motor Vehicle Levy

The sheriff can seize and sell the debtor's vehicles to satisfy the judgment.

• Cost: $100-$300 for levy, plus auction fees
• Exemption: Many states exempt one vehicle worth $3,000-$7,500
• Lien priority: Any car loan is paid first

Dealing with Judgment-Proof Debtors

Some debtors genuinely have no attachable assets or income. They're considered "judgment proof"—you have a valid judgment but nothing to collect from.

Signs of a Judgment-Proof Debtor

• Unemployed or receives only exempt income (Social Security, disability)
• No bank accounts or only exempt funds
• No real property or property has no equity
• Lives in state with strong exemptions (Texas, Florida)
• Already subject to multiple garnishments

Options When Collection Is Impossible Now

• Record liens: Costs little; protects future property purchases
• Renew judgment: Most states allow 10-20 year renewal
• Monitor debtor: Circumstances change—inheritance, new job, lottery
• Settle for less: Some payment may be better than none
• Write off: May be deductible as bad debt (consult tax advisor)

Enforcing Judgments Across State Lines

If the debtor lives or has assets in another state, you can "domesticate" your judgment there under the Uniform Enforcement of Foreign Judgments Act (UEFJA).

Domestication Process

1. Obtain authenticated judgment: From original court
2. File in new state: Register with court where assets are
3. Notify debtor: Send notice of registration
4. Wait for challenges: Usually 30 days
5. Enforce locally: Use that state's collection procedures

Collection Costs

Action	Typical Cost	Recoverable?
Writ of execution	$15-$50	Usually yes
Abstract of judgment	$5-$25	Usually yes
Recording fee	$15-$50	Usually yes
Bank levy (sheriff)	$50-$150	Add to judgment
Debtor examination	$20-$75	Usually yes
Asset search service	$100-$500	Usually no
Collection attorney	25-40% of recovery	From your recovery

Frequently Asked Questions

How long do I have to collect a judgment?

Judgments expire after a set period (typically 5-20 years depending on state), but most can be renewed before expiration. California and Texas allow 10-year renewals; New York and Florida judgments last 20 years. Calendar renewal deadlines—an expired judgment is worthless.

Can I hire someone to collect for me?

Yes. Collection agencies typically take 25-50% of what they recover. Collection attorneys usually charge 25-40%. If your judgment is small or the debtor is judgment-proof, these options may not make economic sense.

What if the debtor declares bankruptcy?

Bankruptcy triggers an "automatic stay" that halts all collection efforts. You must stop immediately. Depending on bankruptcy type (Chapter 7 vs. 13) and the nature of your debt, your judgment may be discharged (eliminated) or paid through the bankruptcy plan.

Can I collect from the debtor's spouse?

Generally no, unless the spouse was also named in the lawsuit or is jointly liable (e.g., co-signed a contract). Community property states have complex rules—consult an attorney about reaching marital property.

What if the debtor moves or hides assets?

Fraudulent transfer laws (UFTA/UVTA) allow you to "undo" transfers made to defraud creditors. If the debtor gave away property to avoid your judgment, you may be able to recover it. These cases are complex and typically require an attorney.

Should I accept a payment plan?

A payment plan with voluntary payments may be better than expensive, uncertain enforcement. Get the agreement in writing, specifying: amount per payment, due dates, what happens on default (remaining balance immediately due), and that you're not waiving any rights. Record liens anyway—they cost little and protect you if payments stop.