I won. Now How Do I Collect My
Judgment Money?
Getting
your money is often harder than getting the judgment.
There is no guarantee that the defendant will
pay you. About 80% of judgments are never collected
at all. That's because the courts can't force
the defendant to pay, and most people don't know
how to do it or they don't have the time. We don't
have a debtor's prison anymore. It's simply not
against the law to owe money.
Note: The award of a judgment does not guarantee
payment of the claim. The court makes the
decision and records the judgment, it does
not enforce collection. While the entry of
judgment does create a recorded lien against
the debtor, it does not guarantee payment
of the debt. |
Enforcing a Judgment
You
are now in the collection or "execution"
phase of getting your money. Your defendant (now
called a debtor because he owes you the money)
refuses to pay, or has disappeared, or is hiding
assets.
There
are various lawful methods you can use to collect
your money. If you know where your debtor works,
in most states you can garnish his wages (not
in Texas or North Carolina). If you know where
he banks, you can levy on his bank account in
most states. If he has equity in his car, you
can pay to have the sheriff take it, and sell
it at auction. If he has a home, you can simply
put a lien on it and get paid when he sells or
refinances.
The
procedures for this may seem complicated because
they are new to you. You have some other choices
then. You can go to a collection agency or use
a judgment recovery specialist. In both case the
person who collects will receive a percentage
of the money recovered. Judgment recovery specialists
usually have more tools than a collection agency,
and their percentage is usually a bit higher.
However, collection agencies typically have an
upfront fee, while judgment recovery specialists
do not.
Or, you can try
judgment
collection yourself ... No, really! You'll learn a lot. There is
a handy step-by-step
judgment recovery guide that can show you some great methods of
collecting.
Hey!
I Received My Money? I'm Done!
Not
yet. It the judgment has been paid in full,
then you must fill a "Satisfaction of Judgment"
with the court. This protects you. If you don't
file a Satisfaction of Judgment, the debtor may
be able to sue you for affecting his credit report
or for some other reason. There's no charge to
file a Satisfaction. Just do it.
Good
Luck!
|