How to Collect On a Judgment

You’ve gone to court and gotten a judgment against someone that owes you money. That’s great, but it’s only the beginning. The next step is collecting the judgment. Here are our four tips for how to collect on a judgment:

Ask Nicely

Hey, it can’t hurt to try. Some debtors pay their debt when they receive a professional letter asking them to pay. Make it clear to them where to pay and how much they owe.

Find Assets that are Accessible

If your debtor is employed, you can file a wage garnishment. You file certain paperwork with the person’s employer, and the employer has to pay you directly from the person’s wages. There are specific rules for when this is allowed and how much you can garnish, so it’s important to read your state’s laws carefully for how to collect on a judgment.

Bank accounts are another great place to look. You can ask the court to allow you to take money directly from a person’s bank account. Like wage garnishments, there are specific rules for each state, and it’s important to follow them.

A Debtor Exam

If you’re not sure where your debtor might have hidden assets, some states allow you to conduct a debtor’s exam. In that case, a person has to testify under oath about all of their assets. This is also a good time to talk to the person face to face about creating a plan to satisfy the debt.

Sell your Judgment

Sometimes, it’s not practical to wait to collect on the judgment. You might need money right away. You might not know all of the ins and outs of state laws and garnishment procedures. If that’s you, you might consider selling your judgment.

There are companies that are in the business of buying civil judgments. You sell the judgment for a price that works for you both. You’re done worrying about the judgment. These companies have professionally-trained experts that work on collecting the judgment. You just enjoy your cash as soon as you make the sale.