When you win a judgment in court, you are still confronted with the step of collecting your judgment. Ideally, the debtor simply hands over the money and you both can get on with your lives. In practice, things are often more complicated. Debtors may be unwilling or unable to pay what they owe you. In such cases, you will have to make some efforts to either collect on your own, hire help or perhaps sell your judgment. Let’s look at some of the main points to consider when you have won a judgment.

1. If the debtor is employed or has money in a bank account, you may be able to garnish their wages or bank account. In the case of wages, states may place a limitation on what percentage of the wages you may garnish. This amount is typically 25% of the debtor’s earnings.
2. If the debtor and/or their property is in another state, collecting can be more complicated. You may have to file a foreign judgment in the state where the debtor currently lives.
3. People facing financial hardship often file for bankruptcy. If the person who owes you money files Chapter 7 bankruptcy, you will not be able to collect on the judgment.
4. If the debtor makes it difficult for you to determine what kind of assets they possess, you (or your attorney) can conduct discovery to locate the assets or income that the debtor has.
5. You may need to hire an attorney to help you collect on a judgment if the debtor refuses to pay or is difficult to track down. While attorneys can be expensive, you may be able to find one who will work in exchange for a percentage of the amount collected. This may prove to be impractical if the judgment is small.
6. Judgments expire after a certain amount of time. This varies from state to state. It may be possible, however, to renew a judgment after it expires.
7. If you win a judgment that proves to be difficult to collect, you have the option of selling it. Judgment Marketplace, the first and leading marketplace for judgments, provides secure and convenient tools for selling judgments online.

Judgments are an essential part of our legal system. They ensure that you have recourse when someone causes you harm or loss due to their negligence. When you win a judgment, however, you must  sometimes be creative and persistent to actually collect what you are owed.

Add A Comment

Add Comment