As a creditor, winning a judgment against a debtor might feel like the finish line, but it’s just the beginning. Successfully suing someone for a debt only gives you a legal document that says you’re owed money. The next step is getting paid by collecting what you’re owed.
The court won’t chase the debtor for you. That’s your job. However, the judgment gives you powerful tools like liens or wage garnishments, and you need to know how to use them. Here’s what you need to do.
Find out what the debtor has
To recover your debt, you need to know what the debtor owns. Do they have a job? Bank account? A debtor’s exam, where you question them under oath about their finances, can help you with this. Public records, assets and credit reports can also uncover valuable details. Some creditors hire skip tracers to track down hidden assets if the debtor is playing hide and seek.
Enforcing the judgment
Once you’ve established what the debtor owns, you can then enforce the judgment. Your options include:
- Garnishing the debtor’s wages, where you take a portion of their paycheck
- Placing a lien on their property so they can’t sell it without paying you first
- Freezing and withdrawing funds from their bank accounts
Each method has legal steps you’ll need to follow, which may include additional court orders.
Timing matters
Judgments against debtors don’t last forever, but they can be enforceable for years with proper renewals. That means you don’t have to rush, but you shouldn’t delay either. Debtors may transfer or hide assets if they know you’re coming.
Additionally, debt collection laws are strict. Stepping outside legal boundaries by threatening or harassing a debtor can cost you the right to collect – sometimes permanently. Reach out for experienced legal guidance if you’re unsure about what’s allowed. It’s better to be cautious than to ruin your chances of collection entirely.