Vets: What's the fastest way to collect on small claims judgments?

Question

Hello All,

I am not a landlord but filed against the owner of a unit in which I was tenant.  [If you don't need my humble observation on not showing for small claims cases, ignore that part.  It's titled, well....observation]

[MAIN]
The easy breakdown of what was supposed to happen:

1.  I paid monthly rent
2.  Owner buys beautiful and shiny new electronics  uses funds towards mortgage

We had a problem getting from Step 1 to Step 2.

I came home one day to find an eviction notice a week after paying for the month.  In order to avoid being locked out I moved and drew up an agreement stating he would refund my rent.  [Always written contracts, 100% of the time]

I won a $250 judgment in small claims because he was a no show in court.

That was the easy part.  Collecting, however, is a pain in my INSERT WORD OF CHOICE.  Have you been through this process?  If so, what's the turnaround on attaching the claim to bank accounts or etc?

[OBSERVATION]

All future or current property owners, if you receive a summons, APPEAR.   Sure, you may be busy but any potential funding may be screwed due to a long sheet of lost cases.  Also, most judgments are valid for 10 years, and mine is good for 20 years (varies by county).  Imagine a string of garnishments on any income, including tax refunds, and your bank account because folks are calling the Marshal to enforce court orders for payment.

J Scott · Answer

David -

Depending on the guy's situation, it may be very, very difficult to collect.  Especially if he is considering bankruptcy, doesn't have any other viable assets, and/or if you don't have personal info such as bank account info or job status.

Here is a general overview of what you can do:

http://www.legalzoom.com/legal-articles/collecting-small-claims-judgment.html

We recently won a judgment against a contractor who owed us a couple hundred dollars.  Not much, but we wanted to pursue it to see what the process was.  Ultimately, he didn't show up in court, and we were awarded about 10x what we were owed; I don't think the judge recently understood the situation, but she didn't seem to care and was happy to award us a lot more than we were owed.

We haven't yet been able to collect, but the mobile home park where the guy lives just went up for sale, and we're negotiating with the owner to possibly buy it...if we do, I have a feeling I'll get my retribution...  :)

Dory Peters · Answer

David, actually, if you won the judgment a year ago, and had the final check that he cashed, then you could have obtained a bank levy to get the money from his account awhile ago.
          
J Scott, actually, you do have other options too.

Account Closed · Answer

The eviction notice was from whom? The bank? Was the property foreclosed on?

You can get a judgement, but it can be very hard to collect, especially if the landlord is in foreclosure. To me that would indicate that he has no funds.

Since he was willing to agree to refund your rent, perhaps he will make an effort to pay you. You can always hope.

David Breitzmann · Answer

The thread continues!

Hakchinoy # 1:  How does one go about obtaining a bank levy?  No relation to New Orleans I hope.

MikeOH:  Thanks for the input.  Actually, the judgment was default.   There is substantiating evidence because the defendent and I had a written contract that I would be repaid in full.  My claim isn't just based on his failure to appear.

It's the principle and since small claims go up to $5,000 learning to collect is essential prior to entering any landlording during later years of my business plan.

Do you see it differently?

J Scott:  Great info.  I'm assuming the court must find you "insolvent" to avoid payment.  Can't a small claims judgment be attached to wages as well?  Did you look there?

Since it remains for a decade why would any destroy their credit for that long over a couple hundred?

Hakchinoy #2:  The question remains, is that all through the Writ of Execution?  It sounds as though J Scott obtained one as well but it doesn't guarantee repayment if they declare no assets.

Is declaration actually investigated or just word of mouth taken as testimoy since it is applicable to a court proceeding?

J Scott · Answer

So, unless/until we can prove he has any assets that will cover the judgment, we don't have much recourse at this time.  But, we have 10 years to hassle him, so if he figures out a way to make some money in the next 10 years (or decides he wants to buy a house or something), we'll eventually get our money with interest.

Luckily for us, it was just a couple hundred dollars, so it's not that big of a deal.  We just thought it would be interesting to see how the process worked...and I imagine if it were a larger judgment, we'd be pretty annoyed...

Dory Peters · Answer

Instead of looking for a single asset that will cover the judgment, you could collect on your judgment using a series of actions:  garnish his wages, seize his bank accounts, seize and auction off his car, etc.  Do that a few times, and he'll probably be more inspired to work out a payment plan for the rest.

Michael Rossi · Answer

There is no fast way to collect.  In fact, collecting is VERY DIFFICULT at best.

In addition, if you get a default judgment because the defendant didn't show up in court and the defendant later hires a lawyer, that lawyer can have the judgment set aside in less time than it takes to drink a cup of coffee!!!

In your case, it's already been going on for a year.  Maybe it's time to move on with your life.

Good Luck,

Mike

David Breitzmann · Answer

Hey All,

J Scott  I hear you on that and sorry for the contractor woes.  Judges issue that much more than the claim?  That's good to know.

Buying the MH park...brilliant!

I actually already have won a judgment per my post.  That was a year ago.  I have his bank info, he cashed my rent check and that's on the digital scan.  I love technology.

P NW  Great question (source of eviction), I dunno the answer.  Believe he was renting the place and I essentially sublet. Did take a photo of the notice and emailed it to myself.  That was a year ago and have already won a judgement.

That's why the post is about collection, versus arbitration.

Bill  Good advice.  I plan on keeping the judgement and trying the NY County marshalls office next week.

Has anyone gone through the collection effort of getting a Writ of Execution?  No, not pummeling with stones,but a court ordering the sherrif to get my funds through bank accounts, property & etc.

Thanks much!!!!

Bill Gulley · Answer

Hi, there are collection agencies that will purchase debts and judgements. Some even take bad checks. If you keep the judgement, don't forget to reinstate your claim as required by law, you should also be getting interest and expenses again if necessary, so keep it current and he will live in a pinch until it gets paid. Some day, he might straighten himself out and want to do something. Bill

Vets: What's the fastest way to collect on small claims judgments?

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