Small Claims Court

1
7 Best Ways to Collect Small Claims Court
Recovery Money
Winning a small claims case is only half the
battle. Getting the money you're owed takes
effort and knowledge. Here are 7 proven
strategies to help you recover your money.
Click here for More Small Claims Processing
Information
2
Garnishing Wages
Garnishment allows you to collect a portion of
the debtor's wages directly from their employer.
This can be effective for debtors with steady
employment and can be a good way to recover a
portion of your judgment.
Legal Process
Example
Considerations
File a Motion for Garnishment with the Court. The
Court will issue a Garnishment Order that the
employer must comply with.
If you win a judgment for 10,000, you could
garnish 25 of the debtor's wages each month. The
employer will send you the garnished money.
Be aware that garnishment may have limitations,
such as a minimum wage exemption. Also, the
debtor could potentially lose their job.
3
Placing a Lien on Property
A lien gives you a legal claim against the
debtor's property, like a house or car. This
means the property cannot be sold or transferred
until the debt is paid.
Real Estate Lien
Personal Property Lien
Enforcement
This type of lien attaches to a debtor's real
property. If the debtor defaults on the payment,
you can foreclose on the property.
This type of lien attaches to a debtor's personal
property. If the debtor fails to pay, you can
seize and sell the property.
Liens are generally enforced through a court
process. This involves filing a lawsuit and
obtaining a court order.
Click here for More Small Claims Processing
Information
4
Seizing Assets
If a debtor refuses to pay after you've obtained
a judgment, you can ask the court to seize their
assets. This could include bank accounts,
vehicles, or personal property.
Asset Identification
You must identify the assets owned by the debtor,
like bank accounts, vehicles, or valuable
possessions.
Court Order
You'll need a court order to authorize the
seizure of the debtor's assets.
Seizure
A sheriff or law enforcement officer will seize
the assets and sell them to satisfy your judgment.
5
Reporting to Credit Bureaus
Reporting a judgment to credit bureaus can
negatively impact the debtor's credit score. This
can make it harder for them to get loans or
credit in the future.
Impact on Credit
Financial Motivation
1
2
A negative mark on a credit report can make it
difficult for the debtor to get loans, rent an
apartment, or even get a job.
This strategy can motivate the debtor to pay
their debt to avoid further damage to their
credit.
Legal Requirements
Reporting Procedure
3
4
In some states, you may be legally required to
report a judgment to credit bureaus.
Check with your state's requirements for
reporting judgments to credit bureaus.
6
Negotiating a Payment Plan
Sometimes, it's more beneficial to work with the
debtor to create a payment plan that works for
both parties. This can be a win-win solution that
allows you to recover your money and helps the
debtor avoid further financial hardship.
Negotiation Strategies
Considerations
Offer flexible payment options
Consider the debtor's financial situation and
ability to pay.
Be willing to compromise
A negotiated payment plan may be better than
pursuing more aggressive collection methods.
Document the agreement
Make sure to get the agreement in writing to
avoid misunderstandings.
7
Purchase a Small Claims Judgment Recovery Course
There are many online courses available that
offer valuable strategies for recovering judgment
money. These courses can teach you about legal
procedures, effective negotiation techniques, and
other strategies for maximizing your chances of
success.
Legal Knowledge
Financial Strategies
Learn about the laws governing judgment
collection and how to file the necessary
paperwork.
Discover methods for maximizing your chances of
receiving payment from the debtor.
Negotiation Skills
Asset Tracing
Develop effective communication and negotiation
techniques to reach a settlement.
Learn how to identify and locate the debtor's
assets to facilitate collection.
Click here for More Small Claims Processing
Information
8
Pursuing Contempt of Court
If a debtor repeatedly fails to comply with a
court order, you can seek a Contempt of Court
charge. This is a serious legal offense that can
result in fines, jail time, or other penalties.
Filing a Motion
1
You must file a Motion for Contempt of Court with
the court, outlining the debtor's violation of
the judgment.
Court Hearing
2
The court will hold a hearing to determine if the
debtor is guilty of contempt. The debtor has the
right to defend themselves.
Consequences
3
If the court finds the debtor guilty of contempt,
they can face penalties such as fines, jail time,
or other sanctions.