How to Collect a Small Claims Judgment When They Won’t Pay
You Won. Now Make Them Actually Pay.
6 enforcement methods. Step-by-step process. All 50 states covered.
If someone refuses to pay a small claims judgment, you have several court-backed enforcement tools available. First send a written payment demand. Then locate their assets through a debtor examination. From there you can garnish their wages, levy their bank account, or place a lien on their property. The court does not collect for you — but it gives you the legal authority to do it yourself. See our Small Claims Court Guide if you have not yet filed your case.
How to Collect an Unpaid Judgment
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After the judge rules in your favor, a mandatory 30-day waiting period begins in most states. During this window the debtor may appeal or file a motion to vacate. You cannot begin formal enforcement until that window closes and no appeal has been filed.
Before spending money on formal collection tools, send a written demand including the full judgment amount, case number, a 10 to 14 day deadline, and a notice that the judgment is permanently on public record. Many debtors pay at this stage rather than face garnishment. Send by both regular and certified mail.
You cannot garnish wages without knowing the employer. You cannot levy a bank account without knowing the bank. Use the court-required Judgment Debtor’s Statement of Assets form or request a Debtor’s Examination where the debtor must appear under oath and answer questions about their income, bank accounts, and property.
A writ of execution is the court order that authorizes a sheriff or marshal to act against the debtor’s assets. Without it, no wage garnishment, bank levy, or seizure can legally happen. File a request with the court clerk, pay the fee, and deliver the writ to the levying officer in the county where the assets are located.
Wage garnishment deducts up to 25 percent of the debtor’s disposable earnings each paycheck until the judgment is paid. A bank account levy seizes funds on a specific day. Note that Texas, Pennsylvania, North Carolina, and South Carolina do not allow wage garnishment for consumer debts. Bank levies work in all states.
File an abstract of judgment with the county recorder’s office where the debtor owns real estate. The debtor cannot sell or refinance without first paying your judgment. File in each county where they own property. This is a slower method but ties up their most valuable asset until the debt is resolved.
Once fully paid, you are legally required to file an Acknowledgment of Satisfaction of Judgment with the court within the state deadline, typically 10 to 30 days. Release any property liens with the county recorder. Failure to do this promptly can expose you to penalties in some states.
Most small claims judgments remain valid for 5 to 20 years depending on the state, and many states allow renewal before expiration for another full term. Even if the debtor has nothing today, their financial situation can change. Mark your calendar well before the expiration date so you do not miss the renewal window.
Four Main Enforcement Methods
Choose the right tool based on what the debtor owns
Up to 25 percent of disposable earnings withheld from each paycheck until the full judgment is paid. Best for employed debtors with steady income. Not available in Texas, Pennsylvania, North Carolina, and South Carolina for consumer debts.
Seizes funds from the debtor’s bank account on a specific date. A one-time action but can be repeated. Exempt funds include Social Security, disability benefits, and child support payments received by the debtor.
Filed against real estate the debtor owns. Prevents sale or refinancing until your judgment is paid. File the abstract of judgment in every county where they own property. Slower but extremely powerful for long-term collection.
A court hearing where the debtor appears under oath and answers questions about their assets, income, bank accounts, and property. Giving false answers is perjury. Many debtors agree to a payment plan to avoid this hearing entirely.
Critical Facts About Judgment Collection
What most people do not find out until it is too late
Winning a judgment means the court agreed you are owed money. It does not mean the court will make them pay. Enforcement is entirely your responsibility as the judgment creditor.
Post-judgment interest accrues automatically from the date of judgment. California charges 10 percent per year. New York charges 9 percent. The growing balance can motivate faster payment.
Since 2017, civil judgments no longer appear on Equifax, Experian, or TransUnion reports. However, judgments remain in permanent court public records that lenders, landlords, and employers routinely search.
Texas, Pennsylvania, North Carolina, and South Carolina do not allow wage garnishment for consumer debt judgments. If you are in one of these states, bank levies and property liens are your primary enforcement tools.
If the debtor has no assets today, your judgment does not disappear. Most judgments are valid for 5 to 20 years and can be renewed. Check public records every 6 to 12 months for new employment or property purchases.
Once you collect the full judgment, you are legally required to file a Satisfaction of Judgment with the court and release any property liens. Failing to do so promptly can expose you to penalties in some states.
Ready to Read the Full Collection Guide?
Asset discovery, post-judgment interest rates by state, what to do when the debtor has nothing, and step-by-step instructions for every enforcement method.
Read the Complete Guide ↓This section is for general educational purposes only and does not constitute legal advice. Judgment collection rules vary by state. Consult a licensed attorney or your local court self-help center for guidance specific to your situation.
What Happens After You Win a Small Claims Case
Once the judge rules in your favor, two legal terms immediately apply to your situation:
The court issues a document called the Notice of Entry of Judgment. This is mailed to both parties. From the date that notice is mailed, a mandatory waiting period begins. In most states, this period is 30 days. During that window, the debtor has the right to appeal the judgment or file a motion to vacate it.
You cannot begin formal enforcement actions until that window closes. Once it does and no appeal has been filed, you are legally authorized to pursue collection.
Can You Sue Someone Again If They Refuse to Pay the Judgment?
No you cannot file a new lawsuit for the same debt. Once the judge has already ruled in your favor, the matter is considered “res judicata” (already decided). Filing another lawsuit would be dismissed in other words you cannot sue someone again. Instead, you use the powerful post-judgment collection tools explained in this guide (wage garnishment, bank levies, property liens, debtor exams, etc.).
Send a Written Payment Demand Letter
Before spending any money on formal collection tools, send the debtor a direct written demand. This costs almost nothing and works more often than people expect.
Your demand letter should include the following:
One important correction many sources get wrong: civil judgments no longer appear on credit reports from Equifax, Experian, or TransUnion. That policy changed in 2017. However, the judgment does remain in court public records indefinitely, and lenders, mortgage companies, and landlords routinely search those records. That is still a meaningful consequence worth including in your letter.
Send the letter by both regular mail and certified mail with return receipt. Keep a copy of everything for your records.
Many debtors pay at this stage. The combination of a formal tone, a hard deadline, and the knowledge that the judgment is permanently searchable in public records is enough to motivate a significant number of people to act. If the debtor responds and says they cannot afford to pay the full amount at once, consider a written payment plan. Spell out the payment schedule, the amount due each month, and what enforcement action you will take if they miss a payment.
Locate the Debtor’s Assets
If the demand letter produces no result, your next move is to find out what the debtor actually owns. This step is often called asset discovery, and it is the foundation of every enforcement method that follows. You cannot garnish wages without knowing their employer. You cannot levy a bank account without knowing where they bank. You cannot place a property lien without knowing if they own real estate.
There are two main tools for how to find debtor assets.
Judgment Debtor’s Statement of Assets
In many states, the court automatically requires the debtor to complete this form within 30 days of the judgment being entered. The form asks for detailed information including:
If the debtor fails to return this form, report that failure to the court clerk. Ignoring a court-required form can result in the debtor being held in contempt of court, which carries its own penalties.
Debtor’s Examination (Judgment Debtor Exam)
If you need more information than the asset form provides, or if the debtor never returned it, you can request a debtor’s examination. This is a court hearing where the debtor must appear in person, sit under oath, and answer your questions about their finances.
At the examination, you can require the debtor to bring supporting documents such as:
Because the debtor is under oath, giving false answers is perjury. Contempt of court for an unpaid judgment becomes a real possibility if they refuse to appear or lie during the exam. Many debtors agree to a payment plan rather than face this hearing. To schedule the exam, file a motion with the court and then have the debtor formally served with the hearing date and any document requirements.
Obtain a Writ of Execution
A writ of execution is the court order that authorizes an official, usually a county sheriff or marshal, to take action against the debtor’s assets. Without this document, no wage garnishment, no bank account levy, and no seizure of personal property can legally happen. Understanding the writ of execution process is essential before taking any direct enforcement action.
To get a writ of execution:
Any fees you pay to obtain and serve the writ are typically added to the total amount the debtor owes you, so keep all receipts.
Garnish the Debtor’s Wages
Wage garnishment is often the most reliable enforcement tool for collecting an unpaid judgment. If the debtor is employed, a court-issued earnings withholding order requires their employer to deduct a portion of each paycheck and send it to the levying officer, who forwards it to you.
Federal Wage Garnishment Limits
|
Debtor’s Disposable Weekly Earnings |
Maximum That Can Be Garnished |
|---|---|
|
Less than $217.50 |
Nothing |
|
Between $217.50 and $290 |
Amount above $217.50 |
|
25% of disposable earnings |
More than $290 |
These are the federal minimums under the Consumer Credit Protection Act. Some states set lower garnishment limits that are more protective of the debtor. Always check your specific state’s rules before filing.
States That Do Not Allow Wage Garnishment for Consumer Debts
Wage garnishment is not available everywhere. The following states either prohibit it entirely or have very narrow exceptions for consumer debt judgments:
If you live in one of these states, you will need to rely on bank levies, property liens, or other enforcement tools instead. Child support and tax debts are handled differently and may still be subject to garnishment in these states. The garnishment continues with each pay period until your full judgment balance is collected. You do not need to renew it after each paycheck.
Garnish the Debtor’s Bank Account
A bank account levy, sometimes called a bank garnishment, allows you to seize funds directly from the debtor’s account. With a writ of execution and the debtor’s bank information, the sheriff visits the bank and instructs them to freeze and transfer available funds up to the amount of your judgment. Key facts to know about bank account levies:
Bank levies work best when you have solid information about where the debtor banks. This is another reason why the debtor’s examination is so valuable for asset discovery.
Place a Judgment Lien on Their Property
If the debtor owns real estate, you can record a judgment lien on property by filing an abstract of judgment with the county recorder or land records office in the county where the property is located. An abstract of judgment is simply a certified summary of your court judgment that gets recorded in the county’s property records.
A recorded judgment lien on property means:
This is a slower method because you may not receive payment until the debtor eventually sells or refinances. But it is extremely powerful because it ties up their most valuable asset until the debt is resolved. If you believe the debtor owns property in multiple counties, file your abstract of judgment in each of those counties.
Comparison of Main Enforcement Methods
|
Method |
Best For |
Speed |
Requires |
|---|---|---|---|
|
Wage Garnishment |
Employed debtors with steady income |
Medium, ongoing per paycheck |
Employer name and address |
|
Bank Account Levy |
Debtors with funds in a known account |
Fast, one-time action |
Bank name and branch |
|
Judgment Lien on Property |
Debtors who own real estate |
Slow, until sale or refinance |
Abstract of judgment filed in correct county |
|
Debtor’s Examination |
Discovering hidden or unknown assets |
Medium, requires court scheduling |
Court filing and proper service |
Additional Enforcement Options
Wage garnishment, bank levies, and property liens cover most situations. But if those methods have not produced results, or if the debtor’s circumstances make them unavailable, you have additional pressure tools worth knowing. Each of the options below applies in specific situations and can be used alongside the primary enforcement methods rather than instead of them
Driver’s License Suspension
In many states, if your judgment arose from a motor vehicle accident or an incident involving the debtor’s vehicle, you can request that the court suspend the debtor’s driver’s license and vehicle registration. This typically requires the judgment to be over a minimum amount, often around $1,000, and unpaid for a set number of days. Requirements vary by state, so contact the court clerk to confirm whether this option is available to you and how to apply.
Seizing Personal Property
In addition to bank accounts and wages, the sheriff may be authorized to seize and sell the debtor’s personal property such as vehicles, jewelry, electronics, or business equipment. Some property is exempt under state law, but a levy on non-exempt personal property can be effective when other methods have failed. Work with the levying officer to identify what property is eligible for seizure and how the auction process works in your county.
Collecting a Judgment Against a Business or LLC
If the judgment is against a business rather than an individual, the same enforcement tools generally apply. You can levy the business’s bank accounts, place liens on business-owned real estate, and garnish payments owed to the business by third parties. Collecting a judgment from an LLC can be more complex because the business structure may shield the owner’s personal assets. If the business has no assets, consult an attorney about whether the owner can be personally held responsible through a process called piercing the corporate veil.
Business License Complaints
If the judgment debtor operates a licensed business, filing a complaint with the state licensing board can put additional pressure on them to pay. In many states, an unsatisfied court judgment is grounds for the licensing authority to:
This approach is especially useful when the debtor is a contractor, real estate agent, or any other professional who depends on a state license to operate.
Assigning the Judgment to a Collection Agency
If you do not want to handle enforcement yourself, you can assign your judgment to a professional collection agency. The agency takes over all collection efforts and keeps a percentage of whatever they recover, usually between 25 and 50 percent. This makes sense when the judgment amount is large enough that a partial recovery is still worthwhile, when you have already exhausted the simpler methods without success, or when you do not have the time or resources to manage ongoing enforcement. Make sure any assignment agreement is in writing and clearly spells out the agency’s percentage, the scope of their authority, and how and when you will receive your share.
What If the Debtor Is Judgment Proof
A debtor is considered judgment proof when they have no income that can be garnished, no bank funds worth levying, and no property to lien. This often applies to someone who is unemployed, receives only exempt income like Social Security, and owns nothing of value in their name.
If this describes the debtor in your case, your short-term options are limited. But your judgment does not disappear. Here is what you need to know:
Document everything and never assume a judgment proof debtor will stay that way forever. People’s financial situations change.
Post-Judgment Interest: Money That Keeps Growing
From the date the judgment is entered, most states allow you to collect interest on the unpaid balance. This is called post-judgment interest and it accrues automatically whether or not you are actively pursuing collection at any given moment.
|
State |
Post-Judgment Interest Rate |
|---|---|
|
California |
10% per year |
|
New York |
9% per year |
|
Texas |
Prime rate as published by the Federal Reserve (minimum 5%) |
|
Florida |
Set quarterly by the Chief Financial Officer |
|
Illinois |
9% per year |
These rates apply to state court judgments. Federal court judgments use a separate rate based on Treasury bill yields. Always include accrued post-judgment interest and any collection costs when calculating how much the debtor currently owes you. The growing balance can also motivate the debtor to settle sooner rather than later.
What to Do When You Have Been Fully Paid
Once you collect the full judgment amount, you have a legal obligation to notify the court and release any liens you recorded. Failing to do this promptly can expose you to penalties in some states and create legal problems for the debtor if they try to sell or refinance property.
Here is what to do after receiving full payment:
Conclusion
Winning in small claims court is only the beginning. Knowing how to enforce a small claims judgment requires persistence, organization, and a clear understanding of every tool available to you. Work through each step in order. Start with the lowest-cost options like a demand letter and a payment plan negotiation, and escalate to formal enforcement only when needed.
Keep detailed records of every letter you send, every form you file, every fee you pay, and every conversation you have with the debtor. Those records protect you legally and help you calculate the running total of what you are owed including post-judgment interest and costs.
If the debtor has any income, any bank accounts, or any property, you have real leverage. Use it systematically and do not give up just because the first attempt does not produce immediate results.
This article is for general informational purposes only and does not constitute legal advice. Laws vary by state and change over time. Consult a licensed attorney in your jurisdiction for guidance specific to your situation.
Frequently Asked Questions
Sources and References
- uscourts.gov: Civil judgment enforcement and writ of execution process: https://www.uscourts.gov/services-forms/fees/court-fees
- consumerfinance.gov: Wage garnishment rules and exempt income protections: https://www.consumerfinance.gov/consumer-tools/debt-collection
- dol.gov: Federal wage garnishment limits under the Consumer Credit Protection Act: https://www.dol.gov/agencies/whd/wage-garnishment
- ftc.gov: Debt collection rights and judgment enforcement: https://consumer.ftc.gov/articles/debt-collection
- law.cornell.edu: Writ of execution, judgment lien, and garnishment legal definitions: https://www.law.cornell.edu/wex/garnishment
- law.cornell.edu: Consumer Credit Protection Act garnishment limits: https://www.law.cornell.edu/uscode/text/15/1673
- law.cornell.edu: Judgment lien definition and legal standards: https://www.law.cornell.edu/wex/judgment_lien
- law.cornell.edu: Debtor and creditor rights overview: https://www.law.cornell.edu/wex/debtor_and_creditor
- courts.ca.gov: California post-judgment collection procedures: https://www.courts.ca.gov/selfhelp-collecting.htm
- nycourts.gov: New York judgment enforcement and post-judgment interest: https://www.nycourts.gov/courthelp/money/collectingJudgment.shtml
- txcourts.gov: Texas wage garnishment exemption rules: https://www.txcourts.gov/justicecourts
- flcourts.gov: Florida judgment collection and post-judgment interest rate: https://www.flcourts.gov/Resources-Services/Court-Improvement/Family-Courts/Small-Claims
- illinoiscourts.gov: Illinois post-judgment interest rate of 9 percent: https://www.illinoiscourts.gov/forms/approved-forms/forms-approved-by-the-illinois-supreme-court/civil
- courts.michigan.gov: Michigan small claims judgment enforcement procedures: https://www.courts.michigan.gov/siteassets/forms/scao-approved/mc12.pdf
- ohiocourts.gov: Ohio judgment collection and garnishment rules: https://www.supremecourt.ohio.gov/JCS/selfHelp/civil/judgmentDebtor
- nolo.com: Collecting a small claims judgment step by step: https://www.nolo.com/legal-encyclopedia/collecting-your-small-claims-judgment.html
- nolo.com: Judgment lien on real estate explained: https://www.nolo.com/legal-encyclopedia/judgment-liens-on-property.html
- nolo.com: How wage garnishment works for creditors: https://www.nolo.com/legal-encyclopedia/wage-garnishment.html
- nolo.com: What is a judgment debtor examination: https://www.nolo.com/legal-encyclopedia/judgment-debtor-examinations.html
- nolo.com: How to renew a judgment before it expires: https://www.nolo.com/legal-encyclopedia/renewing-judgment.html
- justia.com: State-by-state post-judgment interest rates: https://www.justia.com/judgment/post-judgment-interest
- justia.com: Piercing the corporate veil to collect from LLC owners: https://www.justia.com/business-formation/llc/piercing-the-corporate-veil
- hg.org: Bank levy process and exempt funds explained: https://www.hg.org/legal-articles/bank-levy-39797.html
- hg.org: How to enforce a civil judgment against a business: https://www.hg.org/legal-articles/enforcing-a-judgment-against-a-business-31077.html
- americanbar.org: Finding free and low-cost legal help for debt collection: https://www.americanbar.org/groups/legal_services/flh-home
- lawhelp.org: Free legal aid for judgment collection by state: https://www.lawhelp.org
- lsc.gov: Legal Services Corporation assistance for low-income judgment creditors: https://www.lsc.gov/about-lsc/what-legal-aid
- ssa.gov: Social Security benefits exempt from bank levy and garnishment: https://www.ssa.gov/benefits/garnishment
- equifax.com: Civil judgments removed from credit reports since 2017: https://www.equifax.com/personal/education/credit/report/articles/-/learn/judgments-and-credit-reports
- experian.com: Why civil judgments no longer appear on credit reports: https://www.experian.com/blogs/ask-experian/what-is-a-civil-judgment
- adr.org: Using mediation to settle judgment disputes before formal enforcement: https://www.adr.org
- uscourts.gov: Bankruptcy and its effect on judgment collection and automatic stay: https://www.uscourts.gov/services-forms/bankruptcy
