STEP SIX: Collecting a Small Claims Judgment

judgment creditor (JC) - party that is owed money; can be either a winning claimant or a defendant successful in pursuing a counterclaim
judgment debtor (JD) - party that owes money

The court mails the judgment to both parties. However, the party who is awarded the judgment in their favor should write a Demand of Payment Letter to the other party and enclose a copy of the judgment. The party who loses the small claims case has thirty days to pay the other party. After thirty days has passed the parties are no longer claimants and defendants, they become JCs and JDs (see definitions above). In preparing to collect the small claims judgment, the JC must first ascertain the JD's exact legal name and address. Then, the JC must find the JD's assets. The typical types of assets that the JD may have that are available to the JC as possible sources of payment for an outstanding judgment include the JD's checking or savings account and the JD's wages or salary. If the JC has little or no information about the JD's assets, the JC must still obtain that information in order to collect the judgment. The Information Subpoena and Restraining Notice are the JC's best tools for investigating and uncovering specific detailed information about the JD's assets. The Information Subpoena is a legal document that becomes a court order when signed by a judge or stamped by a court clerk. Once served, the Information Subpoena requires the recipient to answer certain specific questions about the JD's assets within seven days. The Restraining Notice is also a court order. It forbids the recipient from selling or otherwise transferring any of the JD's assets that the recipient might possess.

Once the JC has the JD's exact legal name and address and the exact details on the JD's assets, the JC can begin collecting on the judgment. To collect the judgment, the JC should seek the assistance of the sheriff or marshal in the county of the JD's residence or place of business or employment. When preparing to collect from the JD's bank account, the JC should make sure that he/she has sent a Restraining Notice to the bank that houses the JD's account. The JC initiates a levy on the JD's bank account by filling out an Execution Against Property with Notice to Garnishee form and filing it with the sheriff or marshal's office. The JC should also furnish to the sheriff or marshal the name of the JD's bank, the JD's account number (information obtained through the Information Subpoena described above), a copy of the judgment and the JD's exact name and address.

In order for the JC to garnish the JD's wages, the JD's gross earnings must be above a certain minimum set by federal law. The JC initiates a wage garnishment by filling out a form called an Income Execution and filing it with the sheriff or marshal's office. The JC should also furnish the sheriff or marshal with the name and address of the JD's employer (information obtained through the Information Subpoena described above), a copy of the judgment and the JD's exact name and address.

If the JC cannot locate the JD's assets, the JC can still put pressure on the JD to pay the judgment. In some cases the JC may be able to have the JD's license to do business suspended, driver's license suspended and put liens on the JD's personal or real property. The JC can also levy the JD's personal and real property and have it auctioned off, but this is often a cost-prohibitive and very complex collection option. There are also Judicial Enforcement Remedies available to JCs, which include filing a claim for treble damages and additional fees.

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