💸 The Cost of Not Collecting Your Judgment
Why Letting a Judgment Sit Uncollected Is the Most Expensive Decision You Can Make — The True Financial Impact of Inaction and How to Start Collecting Today — 2025
📑 What This Guide Covers
📊 The Real Cost of Doing Nothing
You won your case. The court entered a judgment in your favor. And then — nothing. The judgment sits in a file drawer, uncollected, while the debtor moves on with their life. This is the most common outcome for civil judgments, and it is devastating from a financial perspective. 📊
Studies consistently show that a significant majority of civil judgments go uncollected. Many creditors assume the debtor has no money, or that collection is too expensive, or that they will “get around to it later.” Each of these assumptions is costly — and often wrong. The debtor who appears judgment-proof today may have a good job, a home, and a comfortable lifestyle that they have simply hidden from you. And “later” has a way of becoming “never.” 💸
Every day your judgment sits uncollected, you are losing money in three ways: you are forgoing the interest that accrues on the judgment, you are watching the debtor’s assets become harder to reach, and you are moving closer to the expiration date that could extinguish your rights entirely. ⏰
📈 How Judgment Interest Works in Your Favor
One of the most overlooked aspects of judgment collection is interest. In most states, judgments accrue post-judgment interest automatically from the date the judgment is entered. This interest is not optional — it is required by law, and it accumulates regardless of whether you take any enforcement action. 📈
| Judgment Amount | Interest Rate | After 5 Years | After 10 Years | After 15 Years |
|---|---|---|---|---|
| $10,000 | 10% | $15,000 | $20,000 | $25,000 |
| $25,000 | 10% | $37,500 | $50,000 | $62,500 |
| $50,000 | 10% | $75,000 | $100,000 | $125,000 |
| $100,000 | 10% | $150,000 | $200,000 | $250,000 |
Note: Table assumes 10% simple interest for illustration. Actual rates vary by state — see our judgment interest rates by state guide. Some states use lower rates; some allow compound interest.
✅ Interest Is Your Ally
A $25,000 judgment at 10% interest grows to $50,000 in 10 years — double the original amount. This means that collecting even years after the judgment was entered can yield significantly more than the original award. The debtor who appeared judgment-proof at the time of trial may now have a home, a good job, and other assets — and you are owed twice what you originally won. Time is on your side, but only if you keep the judgment alive and actively pursue collection.
⏰ The Expiration Risk — Use It or Lose It
Judgments do not last forever. Every state sets an expiration period — typically 10 years — after which the judgment becomes unenforceable unless renewed. If you let your judgment expire, you lose everything: the principal, the accrued interest, and all enforcement rights. Permanently. ⏰
📌 Renewal is simple but essential. Most states allow judgment renewal through a simple court filing before the expiration date. The renewed judgment is enforceable for an additional period (typically another 10 years), preserving all accrued interest and enforcement rights.
📌 Missing the deadline is catastrophic. If you miss the renewal deadline — even by one day — the judgment may be permanently lost. There is generally no grace period and no court remedy for a judgment that has expired due to creditor neglect. The debtor walks away free, regardless of how much they owe.
📌 Calendar the deadline now. If you have an active judgment, find the expiration date and calendar a renewal reminder well in advance. Most attorneys recommend filing for renewal at least 6 months before expiration to ensure it is processed in time.
🚨 The $75,000 Mistake
A creditor won a $50,000 judgment in 2025. With interest, the judgment grew to $75,000 over 5 years. But the creditor forgot about the 10-year expiration deadline. After 10 years and 1 day, the judgment expired — permanently. The debtor, who by then owned a home and had a well-paying job, owed nothing. $75,000 disappeared because of one missed deadline. Do not let this happen to you.
🏃 Debtors Get Harder to Find Over Time
The longer you wait to pursue collection, the harder the debtor becomes to find: 🏃
📌 People move. The address you had at the time of trial may be outdated within months. The longer you wait, the more addresses the debtor may cycle through — and the harder it becomes to trace their movements.
📌 Records age out. Some databases have retention limits. Older records may be archived, overwritten, or harder to access. Fresh skip trace data is always more reliable than stale data.
📌 Debtors take evasive action. Debtors who know they have a judgment against them may actively work to become harder to find — changing their name, moving frequently, working under the table, or transferring assets into trusts.
📌 Acting quickly is cheaper. A skip trace immediately after judgment — while the debtor is still at their last known address and still employed at their last known job — is faster, cheaper, and more likely to produce actionable results than a skip trace years later.
💰 Assets Disappear Over Time
The assets available for collection today may not exist tomorrow: 💰
Property Gets Sold or Refinanced
The home the debtor owns today could be sold next year. Without a judgment lien recorded against it, you receive nothing from the sale proceeds. Record your lien immediately — it costs very little and protects your interest for years.
Jobs Change
The employer you know about today may not be the debtor’s employer next month. Wage garnishment requires knowing the current employer. Act now while you have the information — or invest in a skip trace to get updated employer data.
Vehicles Get Sold or Traded
Vehicles depreciate and get traded, sold, or transferred. The vehicle the debtor owns today may be gone in 6 months. If you are going to levy a vehicle, do it sooner rather than later.
Assets Get Transferred
Debtors who know about a judgment may transfer assets to family members or place them in asset protection trusts. Every day you wait gives the debtor another day to move assets beyond your reach.
📉 The Opportunity Cost
Money sitting in an uncollected judgment is money you cannot use. Consider what that money could be doing: 📉
📌 For individuals. A $25,000 uncollected judgment could pay off debt, fund home improvements, cover medical expenses, build an emergency fund, or be invested. The money exists — it is owed to you — but it is trapped in a piece of paper until you take action to collect it.
📌 For businesses. Uncollected judgments represent accounts receivable that will never convert to cash without enforcement action. For small businesses, a $50,000 uncollected judgment could be the difference between a profitable year and a loss. Every uncollected judgment distorts your financial picture and starves your business of working capital.
📌 For attorneys. If you are holding judgment collection files for clients, every uncollected judgment is a contingency fee that you will never earn. A modest investment in skip tracing and asset searches often reveals collection opportunities that justify enforcement action — generating fees for your firm and recovery for your client.
🚀 Low-Cost Ways to Start Collecting Today
Order a Skip Trace
A professional skip trace provides the debtor’s current address, phone number, and employer — the foundation for every enforcement action. The cost is a tiny fraction of your judgment amount. Results in 24 hours or less.
Record a Judgment Lien
File an abstract of judgment in every county where the debtor owns or may own real property. A judgment lien costs minimal filing fees and ensures you get paid when the debtor sells or refinances — even if that is years from now.
File for Wage Garnishment
If the skip trace reveals the debtor’s employer, file a writ of execution and earnings withholding order. Up to 25% of the debtor’s disposable income flows to you automatically each pay period.
Request a Debtor Examination
A debtor examination compels the debtor to disclose all income, assets, and financial information under oath. It costs only a filing fee and service costs. See our preparation guide for maximizing results.
Calendar Your Renewal Date
Find the expiration date of your judgment and set a reminder to renew well in advance. Renewal preserves your rights, your interest, and your ability to collect for another full period.
🔍 Start Collecting Today — Results in 24 Hours or Less
The cost of a skip trace is a fraction of your judgment value. The cost of NOT collecting is 100% of your judgment value. Our professional skip tracing and asset search services give you the intelligence you need to start collecting immediately. Over 20 years of experience serving judgment creditors, attorneys, and collection professionals nationwide.
Order Skip Trace Now →❓ Frequently Asked Questions
📚 Related Resources
📋 Disclaimer
This guide is for educational and informational purposes only and does not constitute legal or financial advice. Judgment enforcement procedures, interest rates, and expiration periods vary by state. Consult with a licensed attorney for specific guidance. People Locator Skip Tracing provides professional skip tracing and asset search services — we do not provide legal advice or legal representation. Information current as of 2025.
