Judgment collection: how small businesses get paid after winning in court
Judgment collection is the work of turning a court judgment into money. The judgment says your customer owes you; it doesn’t pay you. You or a collection attorney then use your state’s enforcement tools, such as asset discovery, bank levies, liens on property and garnishment, and can register the judgment where the debtor has assets.
Winning vs. judgment collection: what a judgment does
A judgment is the court’s official finding that the debtor owes you a sum of money. It gives you legal tools a demand letter never could, but nobody hands you a check. If your customer doesn’t pay voluntarily once the judgment is entered, you have to find what it owns and ask the court to help you reach it. In federal cases the enforcement procedure follows the rules of the state where the court sits[source], so the details below vary by state.
The judgment collection toolkit
- Asset discovery. Post-judgment discovery, such as written questions, document requests or a debtor examination, to learn where the business banks, who owes it money and what property it holds. Federal rules allow discovery in aid of the judgment[source].
- Bank levy. A court-issued order served on a bank to freeze and turn over funds in the debtor’s account. Timing matters: it usually reaches what is in the account when it is served.
- Judgment lien. Recording the judgment where the debtor owns real estate or, in some states, filing against business personal property, so the debt has to be dealt with before the asset is sold or refinanced.
- Garnishing receivables. Ordering the debtor’s own customers or tenants to pay you instead of the debtor.
- Wage garnishment of individuals. Available only against people named in the judgment, such as a personal guarantor, and subject to legal limits.
- Negotiated payment. Many debtors settle once enforcement is real. Get any payment plan in writing, ideally with a stipulation the court can enforce if it is broken.
A typical judgment collection timeline
- Judgment entered; get certified copies.
- Send a written demand for payment of the judgment.
- Record the judgment where the debtor has property.
- Run asset discovery.
- Request levies or garnishments against what you find.
- Negotiate, collect, and file a satisfaction once paid.
Collecting a judgment in another state
If your customer’s money is in another state, you generally don’t have to sue again. States must give full faith and credit to each other’s judgments[source], many use a registration process (New York’s is CPLR Article 54, its version of the Uniform Enforcement of Foreign Judgments Act)[source], and a federal judgment can be registered in another district[source]. Once registered, the judgment can be enforced with the new state’s tools. See collecting from an out-of-state customer.
Who handles judgment collection: you, an attorney or an agency?
You can do some steps yourself, especially after small claims court, but enforcement involves court forms, sheriffs or marshals and strict procedures. A debt collection attorney can handle levies, liens and garnishments, often on contingency. A collection agency can locate the debtor and negotiate payment on the judgment and typically works with attorneys for court enforcement. For most small businesses the deciding factors are the size of the judgment and whether the debtor clearly has assets.
How long a judgment lasts
Judgments last for years, not forever, and the rules differ by state. Florida allows 20 years for an action on a judgment of a Florida court of record[source], and New York’s court chart lists 20 years for enforcing judgments[source]. Some states require renewal, so put the expiration date on your calendar the day the judgment is entered.
When a judgment may not be worth chasing yet
If the business has closed with no assets, filed for bankruptcy, or the judgment is small relative to enforcement costs, it may make sense to record the judgment, keep it current and revisit later. See what happens if your customer files bankruptcy and how to collect a judgment against a business.
General information, not legal advice. Laws vary by state and situation; ask a licensed attorney about yours.
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Frequently asked questions
Do judgment collectors work on contingency?
Many do. Collection attorneys and agencies that enforce judgments often take a percentage of what they recover, though court and service costs may be billed separately. Get the fee and who pays costs in writing before you sign.
Can a collection agency collect a judgment?
An agency can contact the debtor and negotiate payment on a judgment, but court enforcement such as levies and garnishment generally runs through the court and is usually handled by an attorney. Many agencies work with attorney networks for that step.
How long does judgment collection take?
It ranges from weeks, when the debtor pays once the judgment is entered, to years when assets must be found and seized. Time spent locating bank accounts and receivables is often the longest part.
What if the business has no assets?
A judgment may still have value later if the business recovers or assets surface, and many states let you renew it. If the business is in bankruptcy, collection usually has to stop and you file a claim instead.
Can I collect the judgment from the owner personally?
Only if the owner is personally liable, for example through a personal guarantee named in the judgment. A judgment against a company alone generally reaches company assets.
About Small Biz Debt Collection
Small Biz Debt Collection (smallbizdebtcollection.com) is a free matching service that connects U.S. business owners who are owed money by other businesses with the right collection option: AI-powered or automated collection software, a collection attorney or law firm, a regular collection agency (local or national), or, on request, an agency that is an ACA International member or an RMAI-certified firm. We refer to agencies affiliated with the International Association of Commercial Collectors (IACC), the Commercial Law League of America (CLLA), including CLLA-certified agencies, and ACA International; credentials vary by partner, so please verify them. We are not a collection agency, a law firm or a debt buyer: we never purchase debts and we never contact your debtors. Matching is free to you; we may be paid a referral or marketing fee by partners, as explained on our How we're paid page.
Sources: Federal Rules of Civil Procedure, Rule 69 (execution), via Cornell LII; 28 U.S.C. § 1963 (registration of judgments in other districts), via Cornell LII; 28 U.S.C. § 1738 (full faith and credit), via Cornell LII; New York Courts, Ask a Law Librarian, “I want to collect a judgment from another state” (CPLR Article 54); Fla. Stat. § 95.11 (limitations), Online Sunshine; New York Courts, “Statute of Limitations Timetable” (accessed Oct 18, 2026).
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