Tips on Collecting a Judgment
The landscape company damaged your car with their heavy equipment but refused to pay for the damage! A contractor declined to repair the shoddy work they did on your new bathroom! There are endless reasons why you may feel wronged enough to sue. Often these kinds of suits are small claims with small judgments-- usually, anything under $5000. When the case goes to trial and you win a judgment, you may think it's over. However, sometimes the other side still will not pay. When this occurs, how do you go about enforcing and collecting a judgment?
Surprisingly, research suggests that in the state of California as many as one in four small claims court winners receive only a fraction of the amount awarded and 5% - 6% end up with nothing at all. It's easy to think that once the court awards a judgment, they will also make sure it gets paid; however, this is not so unless the person who won the judgment starts filing the right paperwork. The court won't collect for anyone, but they can help with judgment enforcement.
When attempting to collect a judgment, the first thing to be aware of is whether the defendant has filed an appeal. Sometimes people try to collect a claim while the other party has filed an appeal. When that happens, they cannot collect until the appeal is heard and denied. In California, the appeal deadline is 30 days from the date of the judgment. If no appeal has been filed, and the defendant has not paid, it is then proper to proceed with collection actions.
Before trying to strong-arm the other party by filing more legal actions to collect a judgment, it is usually best to communicate directly with the person, or their attorney, and to try to collect the full judgment amicably. This is not always possible, or sometimes the other party will use this as an opportunity to re-negotiate after the fact. Negotiating a payment structure and schedule of payments is perfectly fine. Re-negotiating the judgment amount during the judgment enforcement process is not usually a good idea.
Once an amicable attempt has been tried, yet the owing party still does not cooperate, additional legal action then becomes necessary. When you are in this situation and petitioning the court for the collection of a judgment, you are the 'Judgment Creditor'. The entity who the judgment is against is the 'Judgment Debtor'. In California, the enforcement procedures that help you enforce and collect a judgment include the following:
Surprisingly, research suggests that in the state of California as many as one in four small claims court winners receive only a fraction of the amount awarded and 5% - 6% end up with nothing at all. It's easy to think that once the court awards a judgment, they will also make sure it gets paid; however, this is not so unless the person who won the judgment starts filing the right paperwork. The court won't collect for anyone, but they can help with judgment enforcement.
When attempting to collect a judgment, the first thing to be aware of is whether the defendant has filed an appeal. Sometimes people try to collect a claim while the other party has filed an appeal. When that happens, they cannot collect until the appeal is heard and denied. In California, the appeal deadline is 30 days from the date of the judgment. If no appeal has been filed, and the defendant has not paid, it is then proper to proceed with collection actions.
Before trying to strong-arm the other party by filing more legal actions to collect a judgment, it is usually best to communicate directly with the person, or their attorney, and to try to collect the full judgment amicably. This is not always possible, or sometimes the other party will use this as an opportunity to re-negotiate after the fact. Negotiating a payment structure and schedule of payments is perfectly fine. Re-negotiating the judgment amount during the judgment enforcement process is not usually a good idea.
Once an amicable attempt has been tried, yet the owing party still does not cooperate, additional legal action then becomes necessary. When you are in this situation and petitioning the court for the collection of a judgment, you are the 'Judgment Creditor'. The entity who the judgment is against is the 'Judgment Debtor'. In California, the enforcement procedures that help you enforce and collect a judgment include the following:
Orders to Appear for Examination: Orders the Judgment Debtor to appear in court and answer questions about their assets and income including real property and bank accounts.
Subpena Duces Tecum: Requires the Judgment Debtor to provide documentation regarding their assets, income, bank accounts, etc.
Turnover order: A court order whereby the Judgment Debtor is ordered to forfeit any cash or valuables to a special levy officer. This will then be turned over to the Judgment Creditor as partial or full payment.
Writ of Execution: A court order that authorizes the sheriff's department to garnish money directly from the Judgment Debtors bank account, investment accounts, or from their paycheck through their employer.
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