Judgments explained

If you sue someone for money and win, the judgment is the formal legal document entered by the court that states a defendant owes you money. You obtain a judgment against the defendant once a judge or jury decides the case in your favor.

The plaintiff is the person who files a lawsuit against a defendant. After a judgment is entered, the plaintiff is called the creditor. The defendant is then called the debtor.

If a debtor refuses to pay a judgment in your favor, there are several ways to collect the money from the debtor.

Most judgments accrue interest at 9% per annum. In some circumstances, you can collect prejudgment interest.

Judgments are valid for seven years, but they can be extended. Read more here about how long judgments last and how to revive them.

Federal and out-of-state court judgments

Federal court judgments and judgments from other states must first be domesticated in state court. You can domesticate a judgment by filing an authenticated copy with the clerk of court. Different rules apply to collecting child support.

Finality

Before you start this collection process, you should wait 30 days to see if the landlord pays the judgment or files an appeal. If the landlord does not pay in 30 days, the judgment is final and may be enforced immediately.

Payment plans

You can ask the judge to include a payment schedule as part of the judgment. This can be a good idea if you do not think the defendant can pay you all at once.

A payment plan will not guarantee that the debtor will pay you, but it might encourage the debtor to pay you. It also could be helpful later if you decide to file a Rule to Show Cause against the debtor if the debtor does not make the payments.

File a Citation to Discover Assets

To start the collection process, read about filing a Citation to Discover Assets and then use our easy form to create the forms you need to file. This will allow you to learn what property the debtor owns, and then try to collect against it. Fill out our form citation.

Once you file it with the Clerk, you must serve the debtor with a copy of the citation. This means you must deliver a copy to them through the sheriff. You can use the sheriff or a private process server to serve the debtor with the Citation. You cannot give the citation to the debtor yourself.

The clerk will give a return date. This is the court date when you and the debtor must appear in court. The debtor will have to bring the information you requested in the citation.

If the debtor does not appear, the judge may issue a Rule to Show Cause. A Rule to Show Cause is a court order requiring the debtor to appear in court at a set date and time. You must have a copy of the Rule to Show Cause served on the debtor by the sheriff or private process server. You must also appear in court at the new date and time. If the debtor does not appear, they may be held in contempt of court.

Record the judgment with the Recorder of Deeds

A memorandum of judgment must be recorded with the Recorder of Deeds in the county where the debtor’s real estate property is located. This becomes a lien on the debtor’s property. The lien remains in effect for 7 years. You can also renew the lien twice, for a total of 21 years.

You should also check with your local recorder about any special requirements they may have. You can prepare the document yourself. Some circuit clerks may have forms you can fill out. When it's ready, have the circuit clerk date, sign, and seal it.

If the debtor sells the property, the lien will be a cloud on their title and they will need to pay you to remove it. Or, once the judgment lien is recorded with the county's Recorder of Deeds, you can sue to enforce the lien. Enforcing or foreclosing on the judgment lien is done the same way as a mortgage foreclosure. Read more on enforcing judgment liens against real estate. 

Garnish the debtor’s wages

Wage garnishment, or wage deduction, is the process of collecting a judgment by requiring the debtor's employer to take money out of the debtor's paycheck. However, the employer can only take a part of the debtor's paycheck for you. Read more on wage garnishment basics.

Non-Wage Garnishment

You can also attempt to collect money from the debtor’s bank accounts. This is called levying the bank account. To do so, you file a Citation to Discover Assets to the debtor’s bank. Learn more about how to levy money in a debtor’s bank account and use our easy form to fill out the third-party citation paperwork.