Tips for Collecting Your Judgment

by Robin Leonard, J.D.

You won your lawsuit -- but how do you collect what you're owed?

1. Don't start too soon.
Don't be in a rush to ask for your money. Most states give a losing party the right to appeal, so it's usually a good idea to wait until the deadline for filing an appeal (usually 30 days or so) has passed. If you start bugging the other party sooner, you may just nudge him or her into filing an appeal. And generally, the other party doesn't have to pay a judgment while an appeal is pending.

2. Ask for your money.
A surprising number of debtors will pay their court judgment if you ask nicely. A business-like request for payment is often all it takes, especially if you mention that an unpaid judgment will probably show up on the debtor's credit report. Don't tell the debtor exactly how you plan to collect your judgment if he or she doesn't pay up, however -- this may just encourage the debtor to start hiding assets.

3. Put the burden on the debtor.
Once you win a court judgment, you are legally entitled to your money. Instead of agonizing over how you are going to take and sell the debtor's assets, encourage the debtor to solve his own problem. If he says that he wants to pay but doesn't have the money, suggest some ways to raise cash -- for example, by borrowing money from a friend or relative, taking a cash advance on a credit card, or dipping into retirement accounts.

4. Start with easy-to-reach assets.
When you're planning a collection strategy, it makes sense to start by going after the low-hanging fruit. Wages, bank accounts, and money paid to a debtor's business are all relatively easy assets to grab -- and the procedures for doing so are simple and inexpensive. On the other hand, trying to force a sale of the debtor's vehicle, house, or personal property can be complicated, expensive, and time consuming.

5. Don't harass the debtor.
Although you are entitled to go after your money, you should not harass or threaten the debtor. Avoid practices like calling the debtor early in the morning or late at night, repeatedly visiting the debtor at work, or threatening to harm the debtor for failing to pay. Humiliating or intimidating a person who owes you money can be counterproductive, and it could even get you sued.