You have been fighting for a while and now you will be collecting a court judgement. Your lawyer has guided you through the process, but now you need to know how collecting small claims judgement work. You have come to the right place!
Collecting Small Claims Judgement
Most people have heard of small claims court. The issue is that a lot of people don’t know anything regarding the process of how to collect a small claims judgement once you have won your case.
Small claims court is set up to resolve claims in a speedy manner. It is less expensive than regular court processes. Most of the time judgements are settled for up to $5,000 but can go up to $10,000.
Money is always part of the lawsuit and it is usually the reason for taking the route of small claims court. Now you need to know how to collect your judgement.
The first way is the simplest. You win the case and the defendant agrees to send you the amount you have won. If this does not happen, you can get a wage garnishment against the defendant.
You can get a real estate lien if the above steps do not work or get a bank levy. If the debtor has property, you can put a claim against it and a bank levy is where the debtor’s bank accounts are frozen.
Any of the above methods will work but collecting a debt is not always easy. The process of collecting a judgement seems simple but getting your money may not be.
Is Small Claims Court the Right Decision?
When deciding how to collect your money, you need to know if going to small claims court is the right decision. What is the cost? You will not always know this upfront so you need to seek help if you do not have the funds to pay for costs right away.
In some cases, you may need to receive money ahead of time. This is a good time to learn how legal funding works. If you are in a bind financially and need some cash now, this may be the right option for you.
You basically get a cash advance on what the settlement will be. There is a cost for this so make sure you know what you will be responsible for paying. This money is not free.
The Easiest Options
The easiest way to collect from a debtor is to ask. This does not mean you will receive your money. Many times you will meet with aggression or ignorance. This is when you will want to seek legal help.
After asking for your money, small claims court is the way to go because it is faster than using the regular court process, which is lengthy and expensive. Once you win your case it is time to collect!
You collect your money by the court decision. If that does not force the debtor to pay you, then you take the other routes of a bank levy, wage garnishment, or real estate lien.
Collecting small claims judgement is important and if you need help before the case is resolved, legal funding may be your best option. Follow us for more tips like these!