Collecting on a Small Claims Judgment

If you have won a lawsuit but are having trouble collecting a small claims judgment, you have many legal options.

What you will discover:

Send a Demand for Money Owed Letter Obtain Wage Garnishment Proof
Seizure of a Real Estate Lien Bank Account

Winning a lawsuit and receiving a judgment does not guarantee that you will collect the money that is lawfully entitled to you. The defendant is generally granted a reasonable amount of time, usually 30 days, to pay off their obligations. If you have won a lawsuit but are having trouble collecting a small claims judgment, you have many legal options.

Send a Demand for Payment Letter

Your first line of defense should be to send a certified Demand for Money Owed letter. This letter informs the debtor that it is time to pay their bills. This might act as documentation that you have officially sought payment.

Obtain Evidence

All of the strategies by which you may get your judgment will need evidence. This must be sought from the small claims court, and you will be issued a writ with the appropriate mode of retrieval. This might be a:

Execution Writ
Garnishment Writ
Attachment Writ

This paper must be sent to your local sheriff, who will serve it on the appropriate institution.

Wage Suspension

Federal law authorizes a creditor, like you in this scenario, to garnish a debtor’s earnings. There are restrictions on how much money may be garnished every pay period, which vary by state.

Lien on Real Estate

A lien on a debtor’s property might be put in place. This lien would be attached to the property. You will get the money owing to you when the property is sold or transferred. At this point, interest may also be collected.

Seizure of a Bank Account

This is known as a bank levy, and it permits small claims judgements to be collected directly from a debtor’s bank accounts. This procedure is hard since you will need to know the debtor’s bank account number and the location of their bank. There are certain limits as well.