Won in Small Claims but They Will Not Pay: How to Collect the Judgment

Winning is the first half. Small claims courts rarely collect for you. You usually have to use enforcement tools yourself, and the tools differ by state. Start by learning what the debtor has and where.

First steps

1. Check the judgment for the exact amount, interest and costs, and note any payment deadline.
2. Send a written demand by certified mail with a copy of the judgment and a date to pay.
3. Ask the court clerk for the collection forms and "after you win" guidance.
4. Keep a file of every contact and payment.

Find out what the debtor has

• A debtor examination lets you question the debtor under oath about income, bank accounts and property.
• Court records and public records can show real estate and business ownership.
• Employers and banks are identified in the examination or from earlier filings.
• If the debtor is a business, check the licensing and registered agent records.

Common collection tools

• Wage garnishment: a portion of paychecks goes to you through the employer, subject to legal limits.
• Bank levy: freezes and takes funds from an account, with exemptions for protected money such as certain benefits.
• Property lien: recording the judgment can put a lien on real estate, so you are paid when it is sold or refinanced.
• Seizure of non-exempt property by a sheriff or marshal, which can be costly.
• Installment plans approved by the court, which you can cancel if the debtor defaults.

Costs and limits

Collection fees, filing fees for writs and sheriff costs can often be added to the judgment. Judgments expire after a set number of years in most states, but can usually be renewed, so calendar the date. Interest generally accrues at a rate set by state law. If the debtor has no income or assets that can be reached, you may have to wait and renew.

Bankruptcy and judgment-proof debtors

If the debtor files for bankruptcy, collection usually stops while the case is pending, and the debt may be discharged. A debtor whose only income is protected, such as certain Social Security benefits, may be judgment proof for now. Our guides on how to collect a judgment, wage garnishment and protected funds cover the details.

When to get help

For larger judgments, a collection lawyer or agency can take a percentage of what is recovered. Compare the cost with the amount you realistically expect to collect.

A hypothetical collection plan

A homeowner wins $4,200 from a contractor. She mails a demand letter and gets no answer, then asks the court for a debtor examination. The contractor reveals a business checking account at a named bank. She files the paperwork for a bank levy and receives about $3,000 within weeks, then records a lien and renews a wage garnishment for the rest. Taking steps in sequence, with the right paperwork, is how many judgments are collected.

Keeping the judgment alive

Note the expiration date and the process to renew it. Record the judgment in counties where the debtor owns property. If the debtor moves, you may be able to register the judgment in another state. Keep a ledger of payments and interest so you can state the balance accurately.

Frequently asked questions