How To Collect Your Small Claims Court Judgment

Small claims court judgments are typically issued due to the default of some type of extension of credit

. Most common are lack of rent payments owed, personal loans or medical procedures performed but not paid for. When this happens, the party who granted credit was not compensated so they take the matter to small claims court. In small claims court you are not represented by an attorney and the amounts are typically for less than $8,000. The judge then makes a determination if a judgment should be granted. When the judgment is granted, the judgment debtor now has access to legal process to collect and be paid for there judgment.

Why Are So Many Small Claims Court Judgments Unpaid?

Because most people are unfamiliar with this process, they lack the information needed to enforce their judgment. In fact, most people think that they will be compensated on the day the judgment is issued. They are not familiar with the rights of the Judgment Debtor and will seek the advice or service of an attorney. Unfortunately, most attorneys will not take on these types of judgments because the amounts are too small for their services. They typically will charge a percentage of up to 50% of what they collect or an upfront fee. A fee that may not be reimbursed if they are not successful in the collection process. Most people will make the mistake of deciding that it is not worth the time or effort to persue their judgment and just let it go. What they don't realize is a judgment debtor now has legal tools to help them enforce their judgment and get paid.

What Strategies Can You Take To Collect Your Judgment?

Once you have won your judgment it is very important to contact the Judgment Debtor and let them know you are willing to work with them in repayment before you take further legal action such as wage Garnishment, account levies or property liens. Nine times out of ten, the judgment debtor does not have the ability to pay the judgment off in full. This lays down the foundation that you are going to collect on this judgment one way or another so it is in their best interest to negotiate.

Option 1 Repayment Plan

I have been very successful with this first option. I like to offer a 12 month repayment plan with no interest charges. Reason being, depending on your state, you are allowed to charge interest from the date the judgment is issued. You can let them know you have the right to charge interest but are willing to waive if they will sign a promissory note agreeing to payoff the judgment in a 12 month period. Let them know that while they are on this option, you will not persue further legal action unless they default.

Option 2 Settlement

use this option when I do not get a response back from the judgment debtor. I will send a certified letter stating that I am willing to settle on this debt for 35% less of the value. I let them know that if I don't hear from them by a certain date I will be forwarding the judgment to a Judgment Enforcement Specialist and they will be responsible for the full amount PLUS interest and any fees I accrue. This includes wage garnishment, account levies or property liens. What this means to them is, if they don't agree to some type of voluntary arrangement, I will persue it legally and take it in full.

Option 3 Hire A Specialist

If you are not getting any results, you may want to obtain the services of a Judgment Recovery Specialist. They will request you assign the judgment to them and they will take additional legal action. You will want to find one that only collects if they are successful in the collection of your judgment. They typically will charge anywhere from 25% to 50% of the amount owed.

If you do not want to out source the collection of your judgment and want to collect on your own, you can get most information needed online or through sites such as http://www.operationfreedom.ws/

How To Collect Your Small Claims Court Judgment

By: Don Sandoval

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