How to Collect a Small Claims Judgment
Start by asking the debtor in writing to pay. If they do not, use court collection tools: a debtor examination to learn about their income and assets, a wage garnishment order, a bank account levy, or a lien on real estate. Debtors can claim exemptions that protect some income and property. Judgments last for years and can often be renewed, and they may earn interest.
A court judgment says someone owes you money, but the court does not collect it for you. These tools help.
Step 1: Ask for payment
After the judgment becomes final, send a polite written request with payment options. Many debtors pay once there is a judgment, especially to avoid garnishment or credit consequences.
Step 2: Learn about the debtor's assets
Most states let you require the debtor to appear for a debtor's examination or answer written questions under oath about employers, bank accounts, vehicles and property.
Step 3: Use enforcement tools
| Tool | How it works |
|---|---|
| Wage garnishment | The court orders the employer to withhold part of the debtor's pay, subject to federal and state limits (15 U.S.C. 1673). See garnishment limits |
| Bank levy | A sheriff or marshal seizes funds in the debtor's account, subject to exemptions |
| Property lien | Recording the judgment creates a lien on real estate, paid when the property is sold or refinanced |
| Writ of execution | Authorizes seizure and sale of certain non-exempt property (Cornell LII) |
| Till tap or keeper | Against businesses, a levy on cash receipts in some states |
| License suspension | Some states suspend driver's licenses for unpaid auto accident judgments |
Exemptions
Debtors can protect certain income and property, such as part of wages, Social Security and other federal benefits, a portion of home equity, tools of a trade and household goods. Exempt-only debtors are often called "judgment proof."
How long a judgment lasts
Judgments typically last many years and can often be renewed before they expire. Many accrue interest under state law. Track renewal deadlines.
Payment plans
Some courts allow debtors to request installment payments. Accepting a reasonable plan can be better than chasing assets.
Satisfaction of judgment
When paid, you must file a satisfaction or acknowledgment with the court so the debtor's record is cleared.
If the debtor files bankruptcy
The automatic stay stops collection, and the judgment may be discharged unless an exception applies.
For larger judgments, a business lawyer or a collection attorney can pursue assets, sometimes on contingency.
Sources
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This article is general legal information, not legal advice, and reading it does not create an attorney-client relationship. Laws differ by state and change over time; talk to a licensed attorney in your state about your situation.