Is Judgement Collection Worth It? How to Decide If You Should Pursue Payment
Winning a lawsuit might feel like the finish line, but in reality, it’s often just the beginning. After a judge rules in your favor, you’re awarded a judgment—an official declaration that someone owes you money. But what happens when that person doesn’t pay? This is where judgment collection comes in. Learn more: https://www.evannscollectionlaw.com/how-to-collect-a-judgment-in-california/
If you’re wondering whether it’s worth the time, energy, and money to chase down a judgment, you’re not alone. Many people face the same dilemma and quickly discover that winning in court doesn’t always lead to getting paid. So how do you know if pursuing collection is the right move for you?
Here are the key factors to consider before deciding to go after what you’re owed.
Understand What a Judgment Actually Gets You
A judgment gives you the legal right to collect the money awarded, but it doesn’t enforce payment. That part is up to you. You may need to take further legal steps, such as garnishing wages, placing liens on property, or seizing assets. Each of these actions comes with its own set of requirements and hurdles.
Consider the Debtor’s Ability to Pay
This is often the biggest question. If the person or business that owes you money has no income, no assets, and no prospects, then your judgment may not be worth much—at least not right now. On the other hand, if the debtor has a steady job, owns property, or runs a profitable business, you have a better shot at collecting.
Before spending more time or money, do some basic research. Is the debtor employed? Do they own real estate? Have they filed for bankruptcy? You might be able to find some of this information through public records or with the help of a collection professional.
Weigh the Cost of Collection
Pursuing a judgment isn’t free. You may need to hire an attorney, pay court fees, or work with a collection agency that takes a percentage of whatever they recover. It can also take months—or even years—to collect.
If the amount you’re owed is small, the costs might not justify the effort. But for larger judgments, especially those over a few thousand dollars, the potential reward may outweigh the expense.
Factor in the Time and Stress Involved
Even if you’re comfortable with the financial cost, consider the emotional toll. Tracking down a debtor, filing paperwork, showing up to court, and navigating red tape can be exhausting. If the judgment is against a business partner, family member, or friend, it may strain relationships even further.
For some people, peace of mind is more valuable than the money they’re owed.
Explore Your Options
You don’t have to go it alone. In fact, many people sell their judgments to third-party buyers for a percentage of the total amount. Others hire judgment recovery specialists who are familiar with the process and legal tools needed to collect. These professionals usually work on contingency, meaning they only get paid if you do.
While you won’t walk away with the full amount, it’s often better than nothing—especially if you don’t want to be involved in the collection process yourself.
Know That Time Matters
Judgments don’t last forever. Depending on your state, they may expire after a certain number of years unless you renew them. If you wait too long to collect, you might lose your legal right to do so.
If you’re unsure about the rules in your area, consult an attorney or look up your state’s laws on judgment enforcement.
The Bottom Line
Judgement collection can be worthwhile, but only under the right conditions. If the debtor has assets, if the amount is significant, and if you’re prepared for a potentially long process, then it may be worth pursuing.
But if you’re looking at a deadbeat debtor with no money and no job, it might be better to let it go—or hand it off to someone who specializes in chasing down these debts.
In the end, the decision comes down to your unique situation and what you’re willing to invest to get what’s already yours.