Can Small Claims Court Make the Defendant Pay Me Money Owed If the Court Says I Win the Case?
Winning a small claims case is the first step to collecting money someone owes you -- and you may never be able recoup your loss. Small claims court is an area of jurisprudence where citizens go to settle simple disputes -- usually cases that involve no more than $5,000 and only civil claims. Judges in small claims are decision makers; they will not enforce their opinions.
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Identification
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The courts are not involved directly in the collection process. They won't, for example, call a debtor and ask him to pay the balance. However, the courts have authority and options available for debt collection. Some states, for example, allow you to ask the court to order periodic payments from the debtor. If the debtor stops paying, he might have to come back to court and give reason for his delinquency, according Lawyers.com.
Considerations
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Some debtors are "judgment proof" because they lack any real assets to go after and may not have a job -- at least in the short term. In this case it makes sense to negotiate with the debtor for some type of repayment plan. In a much more difficult situation, the debtor might hide assets. This could require a lawyer to prove the debtor has assets and the time, effort and money may not be worth what he owes.
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Collecting
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Ask the court's clerk how to file a lien on the debtor's property. If a debtor tries to sell property with a lien on it, he must pay off the debt before the transaction can happen. You might also try a writ of attachment, which allows you to seize the debtor's property and have the sheriff sell it off and pay you from the proceeds. A wage or bank garnishment is another possibility. A garnishment takes money out of a debtor's paycheck or bank account until he satisfies the judgment.
Tip
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Court orders, such as a garnishment, can be a slow process, so Nolo.com recommends working out a deal with the debtor personally. If the debtor is insolvent now, ask him about potential assets, such as inheritance, or when he might find work again. Judgments last 10 to 20 years, and some states allow plaintiffs to renew judgments indefinitely, so you probably have enough time to go after the debt. A fair bit of warning: Bankruptcy will wipe out any judgments. If you try to collect a judgment after a person files bankruptcy, the courts could find you in contempt.
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