October 12, 2017
Winning a small claims court case is exhilarating, but it's only half of the battle. You've got to be able to collect on the judgment. Before filing your lawsuit, you'll want to know whether the defendant—the person or business you're suing—has assets you can seize with a money judgment. Learn more about when you should sue.
For instance, the most accessible assets are employment income and bank account funds. Real estate with significant equity is another possibility, but it takes longer and costs more to liquidate real property. Find out more about collecting your small claims judgment.
If you win your small claims court case, you'll receive a money judgment for the amount you're owed. If the defendant refuses to pay voluntarily, the money judgment will allow you to use collection techniques like wage garnishments, property liens, and bank account levies to access the following types of property:
Collecting isn't always easy, however. If you're dealing with a fly-by-night business with no identifiable office or headquarters, or, if a company or individual has already filed for bankruptcy, you might be out of luck.
However, suing an individual who received a bankruptcy discharge recently can be a good thing. A debtor must wait several years before filing for bankruptcy a second time, so you'll have plenty of time to collect on new debt.
See Tips for Collecting Your Judgment for more information.
Debtor protection laws keep you from seizing and selling many types of property, including the food from the debtor's table, the clothing from the closet, and the TV from the living room. It will also be difficult to seize and sell the debtor's car because most states protect a debtor's motor vehicle from creditors up to a certain amount of equity.
If the debtor uses the car for business purposes, the protected equity amount will increase. You'll find that these values are the same in bankruptcy and that the protected property lists are in the state bankruptcy exemption laws.
In some states, a judgment debtor's driver's license can be suspended by the Department of Motor Vehicles if the debtor doesn't pay a judgment stemming from an auto accident. However, to get rid of the debt and therefore avoid the suspension, the debtor might decide to declare bankruptcy. Before that happens, you might want to try negotiating with the debtor. If you work out a payment plan, you get your money, and the debtor doesn't have to declare bankruptcy. Everybody wins.
Judgments eventually expire—usually after five to 20 years, depending on the state. As long as you renew before the judgment's expiration date, you'll be able to extend the time to collect. Keep in mind that you'll need to record the renewed judgment to ensure you retain certain lien rights.
To find out your state's rule, see the chart below. Also, be aware that the expiration periods might differ if you're collecting on a judgment initially entered in another state. Also, laws change, so you'll want to verify this information with the court clerk.
State |
Small Claims Collection and Renewal Period |
Alabama |
20 |
Alaska |
10 |
Arizona |
5 |
Arkansas |
10; 5 in Justice of Peace Courts |
California |
10 |
Colorado |
20; 6 in county courts |
Connecticut |
10 |
Delaware |
10 |
District of Columbia |
12 |
Florida |
20 |
Georgia |
7 |
Hawaii |
10 |
Idaho |
11 |
Illinois |
7 |
Indiana |
10 |
Iowa |
20 |
Kansas |
5 |
Kentucky |
15 |
Louisiana |
10 |
Maine |
20 |
Maryland |
12 |
Massachusetts |
20 |
Michigan |
10 |
Minnesota |
10 |
Mississippi |
7 |
Missouri |
10 |
Montana |
10 |
Nebraska |
5 |
Nebraska |
5 |
Nevada |
6 |
New Hampshire |
20 |
New Jersey |
20 |
New Mexico |
14 |
New York |
20 |
North Carolina |
10 |
North Dakota |
10 |
Ohio |
5 |
Oklahoma |
5 |
Oregon |
10 |
Pennsylvania |
4 |
Rhode Island |
20 |
South Carolina |
10 |
South Dakota |
20 |
Tennessee |
10 |
Texas |
10 |
Utah |
8 |
Vermont |
8 |
Virginia |
20 |
Washington |
10 |
West Virginia |
10 |
Wisconsin |
20 |
For information about renewing judgments, contact your small claims court clerk's office or visit the court's website. You'll find more information about collecting a judgment in Representing Yourself in Court. For a detailed guide to suing someone successfully, get Everybody's Guide to Small Claims Court, by Ralph Warner (Nolo).