By Lee J. Morehead, Esq.
Prevailing in a lawsuit and obtaining a judgment in your favor is often seen as the end of a legal battle, but it’s far from the end of the process. One of the most difficult aspects of the legal process comes after the judgment is awarded: Collection.
Collecting a judgment can be a prolonged and expensive process. Once a judgment is issued, the prevailing party must typically initiate further legal actions to enforce it, such as garnishing wages, placing liens on property, or levying bank accounts. These actions can take months or even years to complete. In some cases, the legal costs associated with these efforts can outweigh the amount of money the creditor is trying to collect, especially if the debtor is uncooperative or difficult to find. Furthermore, the process often involves repeated court filings, hearings, and sometimes the need to hire specialized professionals.
The debtor’s financial situation can prove to be particularly challenging, as the person or entity that owes you money may not have sufficient assets or income to satisfy the judgment. In some cases, debtors may have no assets at all, or their assets may be shielded by legal exemptions. For example, some states protect a debtor’s primary residence or retirement funds from being seized in the collection process, resulting in a court ruling that may be of less value than the actual judgment.
Even if a debtor has assets, they may be difficult to locate or identify. Frequently, debtors are known to move, change jobs, or transfer assets to third parties to avoid paying their debts. Tracking down the assets can be a lengthy process, often requiring the use of private investigators, asset searches, and complex legal procedures that may not always yield positive results. If assets are located, the legal fees and cost of services involved in locating and seizing them can exceed the judgment itself.
While winning a judgment in court is a significant victory, it does not guarantee that the creditor will receive the money or assets owed to them. Creditors should be prepared for what could be a potentially long and costly journey before the judgment is satisfied. In many cases, engaging an experienced attorney or professional debt collector may be essential to successfully navigating the judgment collection process.
