Legal Disclaimer: This article provides general information for educational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change frequently. For advice specific to your situation, consult a licensed attorney in your area.
Winning a lawsuit is only half the battle. Getting the defendant to actually pay is often the harder challenge. Many judgments go uncollected because winners don't know how to enforce them. The U.S. Courts website provides official forms and information for federal judgment enforcement.
Reality Check: Courts don't collect for you. A judgment is just a piece of paper until you take action to enforce it. You become a "judgment creditor" responsible for collection.
Understanding Your Judgment
What a Judgment Is
- Court order that defendant owes you money
- Creates legal right to collect
- Does NOT automatically result in payment
- You must enforce it yourself
- Has expiration date (can renew)
Judgment Components
- Principal: Amount owed
- Interest: Accrues from judgment date
- Costs: Filing fees, service costs
- Attorney fees: If allowed by contract/law
First Steps After Judgment
Wait for Appeal Period
- Usually 30 days for appeal
- Check your state's rules
- Can sometimes enforce during appeal
- Safer to wait unless assets at risk
Request Payment
- Send copy of judgment
- Demand payment within deadline
- Explain enforcement consequences
- Many debtors pay to avoid hassle
Post-Judgment Interest: Your judgment accrues interest until paid - typically 10% per year in many states. Document the growing amount owed.
Finding Assets
Debtor Examination
Court-ordered disclosure:
- Debtor must appear and answer questions
- Under oath about assets and income
- Can subpoena documents
- Failure to appear = contempt
Information to Discover
- Bank accounts and balances
- Employer and wages
- Real property owned
- Vehicles and titles
- Business interests
- Other assets and income
Other Investigation Methods
- Public records searches
- Property records
- Business filings
- Court records (other judgments)
- Asset search services
Wage Garnishment
How It Works
- Court orders employer to withhold wages
- Employer sends money to you
- Continues until judgment satisfied
- Most reliable collection method
Limitations
- Federal limit: 25% of disposable income
- Some states allow less
- Debtor keeps minimum amount
- Self-employed harder to garnish
- Can't garnish certain benefits
Process
- Get writ of execution from court
- Identify employer
- Serve employer with garnishment order
- Employer withholds and remits
- File satisfaction when paid
Bank Account Levy
How Bank Levies Work
- Court order to freeze and seize bank funds
- One-time grab of account balance
- Need to know bank and branch
- Debtor not warned in advance
Process
- Get writ of execution
- Give writ to sheriff/marshal
- Sheriff serves bank
- Bank freezes account
- Funds sent to you after hold period
Limitations
- Exempt funds protected (Social Security, etc.)
- Joint accounts complicated
- Debtor may have moved funds
- Timing is crucial
Exempt Income: Social Security, SSI, VA benefits, unemployment, and certain other income may be exempt from garnishment. Banks must protect exempt funds.
Property Liens
Real Property Liens
- Record judgment with county recorder
- Creates lien on debtor's real estate
- Must be paid to sell or refinance
- Lasts 10+ years (varies by state)
- Can renew before expiration
Forcing Sale
- Can force sale of property in some cases
- Homestead exemptions may protect equity
- Complex and expensive process
- Usually wait for voluntary sale
Personal Property Liens
- Vehicles and equipment
- Sheriff can seize and sell
- Exemptions may apply
- Often costs more than value
Other Collection Methods
Till Tap / Cash Register Levy
- Sheriff collects from business cash register
- Only for business debtors
- Need to know business hours
Assignment Orders
- Intercept money owed to debtor
- Rent payments, business income
- Contract payments
Receivership
- Court appoints receiver for business
- Takes control of business assets
- Extreme remedy for large judgments
Judgment Renewal
Don't Let It Expire
- Judgments last 5-20 years (varies by state)
- Can renew before expiration
- File renewal with court
- Interest continues accruing
Domesticating Judgments
- Debtor moved to another state?
- Register judgment in new state
- Can then enforce there
- Full Faith and Credit Clause
Dealing with Judgment-Proof Debtors
Signs They're Judgment-Proof
- No job or very low income
- No assets in their name
- Already heavily in debt
- Income from exempt sources only
- Filed or about to file bankruptcy
Options
- Wait for circumstances to change
- Renew judgment before expiration
- Monitor for new assets
- Accept partial payment settlement
- Sell judgment to collection agency
Patience Pays: Circumstances change. Someone who is judgment-proof today may inherit money, get a job, or buy property. Keep your judgment active.
Collection Costs
Typical Expenses
- Writ of execution: $25-$75
- Sheriff service: $50-$150
- Bank levy fees: $100-$200
- Asset search: $50-$300
- Most costs recoverable from debtor
Hiring Help
- Collection attorneys: Contingency or hourly
- Collection agencies: Take percentage
- Judgment buyers: Pay cents on dollar
Satisfaction of Judgment
When Paid in Full
- File satisfaction with court
- Release any liens
- Provide debtor with proof
- Required by law
Partial Payments
- Track payments carefully
- Apply to interest first
- File partial satisfaction if agreed
Avoid Collection Hassles
A demand letter often gets payment without needing court at all.
Create Your Letter