Navigating the Challenges of Collecting a Court Judgment from a Tenant

As a business owner, legal battles with tenants can be frustrating. Winning a damages lawsuit against a tenant only means you've won an award of money; the hard part is collecting it. This article will guide you through the process of recovering the judgment and provide insights into effective strategies for getting your money back.

The Aftermath of a Successful Lawsuit

Winning a damages lawsuit against a tenant does not guarantee payment. The judgment issued by the court is merely an award for the amount owed. It's the responsibility of the landlord to enforce this judgment by taking action to collect the funds.

One approach is to file the judgment in your local courthouse. This will affect the tenant's credit and appear in their public record, but it's unlikely to result in immediate payment. If the tenant cannot pay rent, the judgment becomes practically useless.

Strategic Collection Methods

Given the challenges, there are several collection methods you can explore:

Garnishment

After the judgment is issued, you need to initiate a garnishment process. This involves filing with the court to garnish the tenant's salary or levy on their property. However, if the tenant has no assets or is exempt from certain types of garnishment, the judgment will likely go uncollected.

In many states, there is a subsequent hearing that you can file 10 days after the judgment is issued. This hearing may provide additional avenues for collecting the judgment, such as through a garnishment or levying on the tenant's property.

Legal Actions and Additional Steps

One effective strategy is to take the tenant back to court to explain why they ignored the previous court order. Sometimes, a judge's intervention is enough to prompt payment.

If direct methods fail, consider selling the judgment to a collections agency. They may be willing to take on the case for a percentage of any recovered funds. Alternatively, you can use a collections company that specializes in tenant debt recovery and will try to negotiate a payment plan or settle for a portion of the judgment amount.

The Collection Process in Detail

Here's a step-by-step guide to collecting the judgment:

Step 1: Determine Eligibility

Check if the tenant has any other assets that can be seized. This includes bank accounts, wage garnishment, and property valuation.

Step 2: Get a Writ of Execution

Head to the court and request a Writ of Execution. This document allows authorities to seize property, garnish wages, or attach bank accounts to obtain the funds necessary to satisfy the judgment.

Step 3: Implement Collection Measures

Once you have the Writ of Execution, you can proceed with the collection measures. However, be prepared for the possibility that the tenant might not have sufficient funds or assets to satisfy the judgment in one go.

Wage garnishment is effective as long as the tenant continues to work. However, if they quit their job, the collection process must start anew.

Conclusion

Collecting a judgment can be a lengthy and frustrating process, especially when dealing with tenants who are unwilling or unable to pay. Utilizing various legal avenues such as garnishment, court action, and selling the judgment to collections agencies can help increase your chances of recovering the owed funds. Remember, patience and persistence are key to overcoming these challenges.