Winning a judgment in small claims court is a significant achievement, but it’s just the beginning of the process. To actually collect the money awarded, you’ll need to navigate the post-judgment phase. Here’s a detailed guide to help you through it:
a. Obtain a Certified Copy of the Judgment
After the judgment is in your favor, the first step is to obtain a certified copy from the court. This official document proves that you have a legal right to collect the awarded amount.
b. Understand Your Options
Small claims judgments offer several options for collection. You can pursue wage garnishment, bank levies, or place a lien on the debtor’s property. It’s crucial to assess which option is most likely to result in successful collection.
c. Send a Demand Letter
Sending a formal demand letter is often the initial step in the post-judgment process. This letter outlines the judgment details, the amount owed, and sets a clear deadline for payment. It’s a final opportunity for the debtor to pay voluntarily before further legal action is taken.
d. Research Debtor’s Assets
To determine the most effective collection strategy, conduct thorough research on the debtor’s assets. This includes bank accounts, real estate, vehicles, and other valuable possessions. Identifying these assets will guide your next steps.
e. Consider Wage Garnishment
If the debtor fails to respond to the demand letter or is unable to pay the full amount upfront, wage garnishment is an option. This involves obtaining a court order to have a portion of the debtor’s wages withheld and sent directly to you. Visit judgmentcollection.org to learn more about debt collection.