Why It Matters
When a court rules in your favor, that ruling doesn't move money automatically. You have to pursue it: locate the debtor's assets, file the right documents, and force payment through legal mechanisms. For landlords, this typically comes after a tenant skips out on rent or damages exceed the security deposit. Winning in court is step one. Collecting is step two — and it's often harder.
At a Glance
- A judgment is a court order confirming you're owed a specific dollar amount
- The judgment creditor must actively pursue collection — courts don't do it for you
- Common tools: wage garnishment, bank account levy, property lien
- Most states allow 5–20 years to collect, with renewal options
- Debtors can shield certain assets under state exemption laws
- Judgment liens attach to real property the debtor owns now or acquires later
- Collecting from an LLC is harder than from an individual
- Unpaid judgments accrue interest at the statutory rate (often 5–10% annually)
- Collection attorneys can be hired on contingency — no upfront cost
How It Works
Winning a judgment creates a legal obligation on the debtor but no automatic transfer of funds. The creditor must initiate each enforcement step through the court.
Wage Garnishment File a writ directing the debtor's employer to withhold a portion of each paycheck — up to 25% of disposable income under federal law. The employer sends funds directly to you until the balance is paid.
Bank Account Levy Serve a levy on the debtor's bank to freeze and seize funds up to the judgment amount. Timing matters — most states protect a small exempt amount, so hit the account when a paycheck posts.
Judgment Lien Recording a lien clouds the debtor's title and blocks any clean sale or refinance until the debt is paid. In most states, the lien attaches to all non-exempt property in the county. If the debtor sells, you get paid from escrow.
Property Seizure (Writ of Execution) A sheriff seizes non-exempt personal property — vehicles, equipment, business inventory — and sells at auction. Aggressive and logistically complex, but effective when other tools fail.
Asset Discovery Before pursuing any enforcement method, determine what the debtor owns. Use post-judgment depositions (debtor testifies about assets under oath), third-party subpoenas (banks, employers, DMV), and skip-trace services. Skipping this step wastes filing fees on a debtor with nothing to take.
Landlord Context For landlords, judgment collection most often follows an eviction. Former tenants often have limited income and change addresses frequently. Act within 90 days before assets move.
Real-World Example
Lisa owns a four-unit rental in Phoenix. Her tenant, Marcus, stopped paying in October and vacated in January after eviction proceedings. The judge awarded Lisa $6,400 — three months of unpaid rent plus court costs.
She ran a skip trace, found Marcus working at a logistics company, and filed a writ of garnishment with Maricopa County Superior Court. The employer withheld 20% of his weekly paycheck — about $290/week. Six months later, the judgment was paid in full including accrued interest.
Lisa filed within 30 days before Marcus could quit and disappear. She also recorded a judgment lien in the county records — no immediate payoff, but it would attach to any property he later purchased.
Pros & Cons
- Establishes a legally enforceable debt that can follow the debtor for years
- Interest accrues on unpaid balances, increasing the recoverable amount
- Multiple tools available — if garnishment fails, a levy or lien may work
- Judgment liens encumber real property, creating leverage at any future sale
- Judgments can be renewed in most states before expiration
- Contingency attorneys mean no upfront cost if recovery is uncertain
- Courts issue judgments but don't collect — all enforcement falls on the creditor
- Many former tenants have no seizable assets (unemployed, renting, unbanked)
- State exemption laws protect certain income and property from collection
- Collecting from an LLC requires pursuing entity assets separately
- Skip-trace fees and filing costs often exceed the value of small judgments
- Missed renewal deadlines permanently extinguish the debt
- Garnishment is useless if the debtor is self-employed or paid in cash
Watch Out
Statute of Limitations and Renewals Most judgments expire in 5–10 years. Miss the renewal deadline and the debt becomes uncollectable — permanently. Docket it the day the judgment is entered.
Exempt Assets Are Off-Limits Every state protects homestead equity, retirement accounts, Social Security income, and basic household goods. Attempting to levy exempt assets is illegal. Know your state's exemption schedule before choosing an enforcement strategy.
Cost-Benefit Reality For small judgments against debtors with no traceable assets, collection costs often exceed the recovery. Run the math before committing.
Wrong Entity If the tenant operated as an LLC and the judgment names the individual, you may not reach business assets — and vice versa. Getting the defendant right at filing is critical; post-issuance amendments are difficult and often not permitted.
Ask an Investor
The Takeaway
Winning a judgment is a legal victory that means nothing without follow-through. The tools work — garnishment, levies, and liens are effective — but only against debtors with traceable income or property. Act quickly after the judgment issues, know your state's exemption laws, and calculate whether the cost of collection makes sense before committing.