Winning in small claims court doesn't guarantee payment. If the defendant doesn't pay voluntarily, you become a judgment creditor with tools to enforce your award—but collection takes effort. Understanding collection methods helps you turn your court victory into actual money.
Many people win judgments only to struggle with collection. Knowing your options improves your chances of getting paid.
After the Judgment
Courts don't collect judgments for you—that's your responsibility. The defendant (now the judgment debtor) may pay voluntarily, especially businesses concerned about their reputation. Send a written demand requesting payment within a specific timeframe.
Some courts provide satisfaction of judgment forms for when payment is received. When you're paid in full, you should file this form to clear the court record.
If the debtor doesn't pay voluntarily, you'll need to use legal collection methods.
Wage Garnishment
Wage garnishment orders the debtor's employer to withhold part of each paycheck and send it to you. Courts issue garnishment orders upon request after you provide information about the debtor's employer.
Federal law limits garnishment to 25% of disposable earnings or the amount by which weekly wages exceed 30 times minimum wage, whichever is less. State laws may provide additional protections.
Garnishment works only if the debtor is employed at a job with regular wages. Self-employed individuals or those working off the books are harder to garnish.
Bank Levies
A bank levy seizes money from the debtor's bank accounts. You obtain a writ of execution from the court, provide it to the sheriff along with information about the debtor's bank accounts, and the sheriff serves the levy on the bank.
The bank freezes funds up to your judgment amount and transfers them to you after legal procedures are followed. Certain funds (like Social Security) may be exempt from levy.
You need to know where the debtor banks. Debtor examination procedures (described below) can help discover this information.
Property Liens
Recording your judgment creates a lien against the debtor's real property. When they sell or refinance the property, your judgment must be paid from the proceeds before they can complete the transaction.
Liens don't get you money immediately—you wait until the property is sold or refinanced. But they secure your judgment and motivate debtors to pay to clear their title.
Personal property liens may be available in some states but are less common and more complicated to enforce.
Debtor Examination
If you don't know the debtor's employment or banking information, you can request a debtor examination (also called supplemental proceedings). The court orders the debtor to appear and answer questions about their income, assets, and financial situation.
Failure to appear can result in contempt of court. The examination helps you identify assets to levy and income to garnish.
Prepare questions about employment, bank accounts, vehicles, real estate, and other assets before the examination.
Seizing Personal Property
The sheriff can seize and sell the debtor's personal property—vehicles, equipment, inventory—to satisfy your judgment. This requires a writ of execution and often a deposit to cover the sheriff's costs.
Personal property seizure is typically a last resort. It's labor-intensive, items sell at auction for low prices, and many personal items are exempt from seizure (clothing, basic household goods, tools of trade).
When Collection Is Difficult
Some debtors are "judgment proof"—they have no wages to garnish, no bank accounts to levy, no property to lien. You can't collect what doesn't exist.
Judgments typically remain valid for years (often 10-20 years, renewable in some states). Circumstances change—today's broke debtor may have assets later. Keep your judgment active.
Collection agencies sometimes buy judgments at a discount. You get less than the full amount but avoid continued collection efforts.
Costs and Fees
Collection involves costs: sheriff's fees, filing fees for garnishments and levies, and debtor examination costs. These costs are often added to the judgment amount, but you may need to pay upfront.
Consider whether potential collection justifies the costs. For very small judgments against clearly judgment-proof debtors, further collection efforts may not be worthwhile.
Getting Legal Help
Collection can be complicated, especially with uncooperative debtors. Collection attorneys specialize in enforcing judgments and know techniques for finding hidden assets. Some work on contingency, taking a percentage of what they collect. For larger judgments, professional collection assistance may be worthwhile if your own efforts have failed.