Judgment Recovery Services

Winning a lawsuit is only half the battle—collecting the judgment is often harder than getting it. Many judgment creditors discover that debtors who wouldn’t pay voluntarily don’t suddenly cooperate after losing in court. Professional judgment recovery services provide the skip tracing, asset investigation, and enforcement support needed to turn paper judgments into actual money. This guide explains what judgment recovery services offer, how they work, what they cost, and how to choose the right approach for collecting what you’re owed.

📋 Understanding Judgment Recovery

A judgment is a court order establishing that one party owes money to another. But a judgment is just paper—it doesn’t force the debtor to pay and doesn’t automatically transfer assets to you. The creditor must take enforcement actions to actually collect the money that the court has determined is owed.

The Collection Challenge

Many judgment debtors don’t pay voluntarily after losing in court. They may genuinely lack resources to pay, may be hiding assets to appear judgment-proof, may have moved to avoid you and make collection difficult, or may simply refuse to cooperate despite the court order. Judgment creditors face the burden of locating debtors who’ve moved, finding their assets that might satisfy the judgment, and pursuing enforcement remedies—all while the debtor may be actively trying to avoid collection. This is where judgment recovery services help by providing the expertise and resources that individual creditors typically lack.

What Services Provide

Judgment recovery services support collection efforts in various ways depending on your needs: skip tracing locates debtors who’ve moved or are hiding by accessing databases showing current addresses and employment; asset searches identify property, bank accounts, and other assets available for collection; investigation uncovers hidden assets and fraudulent transfers that might otherwise escape notice; some services handle enforcement actions directly; and some services collect on contingency, taking a percentage only if they successfully recover money. Different services offer different combinations of these components.

Why Professional Help Matters

Professional services have resources that individual creditors simply don’t have access to. Skip tracers access commercial databases showing current addresses and employment information that you can’t find through Google searches. Asset investigators find hidden property that individual creditors might never discover through their own efforts. Experienced collectors know which enforcement methods work best in different situations and how to navigate complex collection procedures. Professional expertise often makes the difference between successful collection and an uncollectible judgment gathering dust. See how to collect a judgment for comprehensive collection guidance and strategy.

Time Sensitivity

Judgments don’t last forever—they expire after a period of years set by state law, typically 10-20 years depending on the state where judgment was entered. While judgments can usually be renewed before expiration to extend the collection period, delay gives debtors time to hide assets where you can’t find them, move away without leaving forwarding information, discharge debts in bankruptcy eliminating your right to collect, or become truly uncollectible through changed circumstances. Prompt collection action improves success rates compared to waiting and hoping the debtor will eventually pay voluntarily.

The Collection Process

Effective judgment collection typically follows a progression: first, locate the debtor using skip tracing if their current whereabouts are unknown; second, investigate their assets to understand what’s available for collection; third, pursue appropriate enforcement remedies based on what assets exist; fourth, monitor ongoing collection opportunities if initial efforts don’t fully satisfy the judgment. Each step builds on the previous one, and services may support any or all steps depending on your needs and budget.

🔍 Skip Tracing Services

Skip tracing—locating people who’ve “skipped” or can’t be found—is often the first step in judgment recovery. You can’t collect from someone you can’t find.

Locating Judgment Debtors

Skip tracing finds debtors’ current addresses, phone numbers, and other contact information. Databases show where debtors have recently used credit, established utilities, or otherwise created data trails. Even debtors who’ve moved and tried to disappear usually leave traces that skip tracing uncovers. Current address information enables you to send collection letters, serve enforcement papers, and take other collection actions.

Finding Employment Information

Employer information is crucial for wage garnishment—you can’t garnish wages without knowing where someone works. Skip tracing reveals current employers through databases tracking employment connections. This enables wage garnishment, one of the most effective collection methods. See finding employer for wage garnishment for detailed information on locating employment.

Skip Tracing Costs

Skip tracing typically costs $50-150 per search depending on scope and provider. Basic searches return current address and phone; more comprehensive searches include employment, assets, and detailed personal information. The cost is usually worthwhile—successful collection of even modest judgments easily justifies skip tracing fees, and you can’t collect without locating the debtor. See skip tracing costs for detailed pricing.

When Skip Tracing Is Needed

You need skip tracing when: the debtor has moved from their last known address, mail to the debtor returns undelivered, you don’t have current phone numbers, you need employment information for garnishment, or you simply don’t know how to reach the debtor. Most judgment collection efforts benefit from skip tracing even when you think you know where the debtor is—confirmation prevents wasted effort on outdated information.

💰 Asset Search Services

Asset searches reveal what the debtor owns that might satisfy your judgment. Knowing what assets exist guides your enforcement strategy and helps you pursue the most productive collection methods.

What Asset Searches Find

Professional asset searches identify various types of property: real estate owned by the debtor in any county or state (perfect for judgment liens), vehicles registered in their name, business interests and ownership stakes, known financial account relationships, investment accounts and brokerage holdings, and other tangible and intangible property that might be subject to collection efforts. This information guides decisions about which enforcement methods to pursue and where to focus your collection efforts. See asset search services for comprehensive information about what searches reveal.

Real Estate Assets

Property ownership is particularly valuable for judgment collection because real estate can’t be hidden or moved. Judgment liens attach to real estate, preventing sale or refinancing without paying your judgment first. Properties with sufficient equity above homestead exemptions and senior liens can potentially be sold through execution sales to satisfy judgments, though forced sales are often impractical. Even if you can’t force immediate sale, liens ensure eventual payment when the property sells, refinances, or transfers—the debtor can’t convey clear title without satisfying your lien first. See finding property ownership for detailed search guidance.

Hidden Asset Investigation

Some debtors actively hide assets to avoid collection—transferring property to family members, concealing business income through cash transactions, creating complex entity structures to obscure ownership, or using various other schemes to appear judgment-proof while actually having substantial resources. Asset investigation looks beyond obvious holdings to uncover hidden wealth that might satisfy your judgment. Signs of hidden assets include: lifestyle inconsistent with claimed poverty (expensive cars, vacations, spending patterns that don’t match income claims), unexplained asset transfers around the time of litigation, assets held by family members or entities closely connected to the debtor, and business arrangements that seem designed to obscure ownership. See signs a debtor is hiding assets for detailed red flags and investigation approaches.

Asset Search Costs

Asset searches typically cost $150-500 depending on scope and depth of investigation. Basic searches cover real estate holdings and vehicle registrations across relevant states. Comprehensive searches include business interests, financial indicators, deeper investigation into potential hidden assets, and analysis of the debtor’s overall financial picture. The cost is justified for larger judgments or when you suspect hidden assets exist that basic information won’t reveal. Finding a single significant asset that can be collected often makes the entire search worthwhile many times over.

⚖️ Enforcement Support

With debtor location and asset information, you can pursue enforcement remedies to actually collect money. Various services support enforcement efforts.

Wage Garnishment Support

Wage garnishment takes money directly from debtor paychecks before they receive it—one of the most effective collection methods. With employer information from skip tracing, you can pursue garnishment. Services may help prepare garnishment paperwork, track compliance, and manage ongoing garnishment. Up to 25% of disposable earnings can typically be garnished for ordinary debts. See assets that can be seized for garnishment details.

Bank Levy Support

Bank levies freeze and seize funds in debtor bank accounts. Identifying bank relationships through asset investigation enables levy attempts. Services may help identify likely banks, prepare levy paperwork, and coordinate with sheriffs or marshals who execute levies. Bank levies can capture whatever funds are in accounts at the time of levy—potentially significant amounts.

Property Lien Recording

Recording judgment liens against debtor real estate secures your position. Liens must be recorded in counties where property is located. Services ensure proper lien recording in all relevant counties. Liens accrue interest and must be satisfied before property transfers with clear title.

Debtor Examinations

Post-judgment discovery—debtor examinations and interrogatories—compels debtors to reveal assets and income under oath. If debtors fail to appear or lie, they face contempt sanctions. Services may prepare examination questions, help conduct examinations, and analyze responses to identify collection opportunities. Examinations often reveal assets that investigation alone doesn’t find.

📊 Contingency Collection

Contingency judgment collectors take a percentage of what they collect, receiving nothing if they don’t collect anything. This arrangement shifts the financial risk from you to the collector, making it attractive for creditors uncertain about collection prospects.

How Contingency Works

Contingency collectors evaluate your judgment and the debtor’s apparent collectibility before deciding whether to take the case. If they accept, they pursue collection using their own resources—skip tracing, asset investigation, enforcement actions, legal proceedings if necessary—and take an agreed percentage of whatever they ultimately recover. You pay nothing unless and until they actually collect money. This aligns the collector’s financial incentive directly with yours: they only profit if you get paid, so they’re motivated to pursue collection aggressively and effectively.

Contingency Percentages

Contingency fees typically range from 25-50% of recovered amounts, with higher percentages for older judgments, smaller amounts, or harder-to-collect situations where success is less certain. Larger, newer judgments against debtors with apparent assets command lower percentages because they’re easier to collect. The percentage reflects the collector’s assessment of difficulty, risk, and the resources they’ll need to invest in pursuing collection. Negotiate rates based on your judgment’s specific characteristics—larger judgments and stronger debtor profiles justify lower percentages.

When Contingency Makes Sense

Contingency collection makes sense when: you don’t want to invest money with uncertain outcome, the judgment is large enough to attract collector interest despite the percentage, you lack time or expertise to pursue collection yourself, or you’ve tried collecting without success and want professional help without additional investment. Contingency eliminates your financial risk.

Contingency Limitations

Contingency collectors decline cases they don’t expect to profit from. Smaller judgments, debtors who appear judgment-proof, and older judgments may not attract contingency collectors. If your judgment isn’t attractive enough for contingency, you may need to pursue fee-for-service options or DIY collection. Collectors choose cases selectively to protect their profitability.

💼 Fee-for-Service Options

Fee-for-service providers charge set fees for specific services regardless of collection outcome. You pay for services received even if collection ultimately fails.

Skip Tracing Services

Skip tracing is typically fee-for-service—you pay for the search whether or not you successfully collect. Costs run $50-150 per search. The information helps you pursue collection, but you bear the risk if collection fails. Skip tracing is often the starting point before deciding on further services.

Asset Investigation

Asset searches are also fee-for-service, typically $150-500 depending on scope. You pay for the investigation whether or not it reveals collectible assets. If investigation shows the debtor is judgment-proof, you’ve paid for that information. If it reveals assets, the information enables collection efforts.

Hourly Investigation

Investigators working hourly ($50-150/hour) bill for time spent regardless of results. This model works for focused, defined tasks where you control scope and can stop when you’ve learned enough. Hourly investigation makes sense for specific questions—verifying an asset, investigating a transfer, or researching a particular issue.

Fee vs. Contingency Trade-offs

Fee-for-service costs money upfront with uncertain outcome but keeps more of any recovery. Contingency costs nothing unless collection succeeds but takes a significant percentage of recovery. For judgments likely to be collected, fee-for-service may produce better net results. For uncertain collections, contingency eliminates downside risk. Your choice depends on judgment size, collection likelihood, and risk tolerance.

🎯 Choosing Services

Choosing the right judgment recovery services depends on your specific situation—judgment size, debtor circumstances, and your resources and preferences.

For Smaller Judgments

Smaller judgments (under $5,000-10,000) may not justify extensive professional services. Skip tracing to locate the debtor is usually worthwhile. Beyond that, DIY collection or simple enforcement actions may make more sense than expensive investigation. Contingency collectors rarely take smaller judgments. Consider cost-benefit carefully for modest amounts.

For Larger Judgments

Larger judgments justify more investment in professional services. Comprehensive asset searches help identify all collection opportunities. Contingency collectors are more interested in larger amounts. Multiple enforcement methods can be pursued simultaneously. The potential recovery justifies professional fees that wouldn’t make sense for smaller amounts.

For Difficult Collections

When debtors appear to be hiding assets, have moved repeatedly, or are actively avoiding collection, professional investigation and persistence matter most. Experienced collectors know techniques for difficult cases. Investigation may uncover hidden assets or fraudulent transfers that enable collection. These cases often require more than basic skip tracing.

Evaluating Providers

When choosing judgment recovery services, consider: experience with judgments similar to yours, what specific services they provide, pricing structure (contingency, fee-for-service, or hybrid), what their success rates are, and whether they’re properly licensed where required. Get multiple quotes and understand exactly what you’re paying for before committing.

📝 DIY Collection Options

You can pursue some collection activities yourself without professional services, though DIY has limitations.

Recording Judgment Liens

You can record judgment liens yourself by obtaining an abstract of judgment from the court and recording it with county recorders where the debtor owns property. This costs filing fees (typically $10-50 per county) but no professional fees. Liens protect your position while you pursue other collection or wait for property sale.

Conducting Debtor Examinations

You can schedule and conduct debtor examinations yourself in many jurisdictions. File the necessary paperwork with the court, have the debtor served with examination notice, and ask questions about their assets and income. This requires court appearances but no attorney if you’re comfortable representing yourself.

Pursuing Garnishment

With employer information, you can pursue wage garnishment yourself. Obtain garnishment forms from the court, complete them properly, and serve on the employer. This requires understanding garnishment procedures but is doable for those willing to learn the process.

DIY Limitations

DIY collection is limited by your ability to find debtors and assets. Without skip tracing databases, you may not locate moved debtors. Without asset investigation resources, you may miss significant property. DIY works best when you know where the debtor is and have some idea of their assets. For difficult collections, professional help usually produces better results.

⏰ Timing Considerations

Timing affects judgment collection success significantly. Understanding timing issues helps you act appropriately and avoid letting opportunities slip away while debtors dissipate assets or disappear.

Act Promptly

Begin collection efforts soon after obtaining judgment. Debtors who intend to hide assets often do so quickly once they know a judgment exists—transferring property to family members, closing bank accounts, changing jobs to avoid garnishment. Debtors who are willing to pay often respond to prompt collection pressure better than delayed efforts. Waiting allows debtors to dissipate assets, move away without forwarding information, or file bankruptcy to discharge the debt. The sooner you act, the better your chances of successful collection.

Judgment Renewal

Judgments expire after periods set by state law—typically 10-20 years depending on the state where judgment was entered. Before expiration, you must file for renewal to extend the judgment and keep it enforceable. Missed renewal deadlines can cause judgments to become unenforceable, wiping out your right to collect. Calendar renewal deadlines well in advance and act before the deadline approaches. Renewal usually requires filing paperwork and paying modest fees, but missing the deadline can cost you the entire judgment.

Interest Accrual

Judgments typically accrue interest at rates set by state law—often 10% or more annually. Over years, interest can significantly increase the total amount owed. Track interest accrual and include accumulated interest in your collection demands and enforcement calculations. Interest continues accruing until the judgment is paid or expires.

Bankruptcy Implications

Debtor bankruptcy affects collection substantially. The automatic stay immediately stops all collection activity the moment bankruptcy is filed—you cannot continue garnishment, levy bank accounts, or take other collection actions while bankruptcy is pending. Many debts are discharged in bankruptcy, eliminating your right to collect entirely. However, some debts aren’t dischargeable, including debts arising from fraud, willful injury, and certain other categories. Judgment liens against real estate often survive bankruptcy even when the underlying debt is discharged—the lien remains even though the personal liability is eliminated. Understanding bankruptcy implications helps you respond appropriately if debtors file.

Long-Term Collection Strategy

Some judgments take years to collect because debtors lack current resources but may have assets later. People’s circumstances change—they inherit money, sell property, get better jobs, or otherwise improve their financial situation. Judgment liens protect your position during the wait by attaching to any real estate the debtor acquires. Periodic skip tracing and investigation reveal changed circumstances that create collection opportunities. Patience combined with persistent monitoring eventually produces results on some judgments that appear uncollectible initially. Don’t abandon judgments too quickly—circumstances often change.

🗺️ State-Specific Considerations

Judgment collection laws vary by state. Understanding state-specific rules helps you pursue collection effectively in relevant jurisdictions.

Domesticating Out-of-State Judgments

If your judgment is from one state but the debtor lives in or has assets in another state, you typically must domesticate (register) the judgment in the other state before pursuing enforcement there. The Uniform Enforcement of Foreign Judgments Act, adopted by most states, provides a relatively simple process for domestication. Once domesticated, you can pursue enforcement as if the judgment were originally entered in that state.

Exemption Laws

States vary dramatically in what assets are exempt from collection. Some states (like Florida and Texas) have unlimited homestead exemptions protecting primary residences of any value from creditors. Other states have modest homestead exemptions that protect limited equity. Wage garnishment limits, bank account exemptions, and personal property exemptions also vary. Understanding exemptions in relevant states helps you know what’s actually collectible. See assets that can be seized for exemption information.

Garnishment Procedures

Garnishment procedures differ between states. Some states allow creditors to garnish wages directly with minimal court involvement; others require court orders and more procedural steps. Some states protect more wages than federal minimums require; a few states restrict wage garnishment significantly or entirely for consumer debts. Know the garnishment rules in states where debtors work.

Debtor Examination Rules

Rules for post-judgment discovery—debtor examinations and interrogatories—vary by state. Some states allow extensive examination of debtors about all assets and income; others have more limited procedures. Some allow examination at courts convenient to creditors; others require examination where debtors live. Understanding local rules helps you use discovery effectively.

🚫 Fraudulent Transfer Issues

Debtors sometimes transfer assets to family members or others to put property beyond creditors’ reach. These fraudulent transfers may be reversible.

Recognizing Fraudulent Transfers

Fraudulent transfers involve debtors moving assets to others without receiving fair value in return, typically to prevent creditors from reaching those assets. Common patterns include: transferring real estate to spouses or family members, gifting valuable property, moving assets into entities like trusts or LLCs controlled by family, selling property to insiders for far below market value, and similar transactions that put assets beyond your reach while keeping them effectively available to the debtor through family relationships.

Reversing Fraudulent Transfers

Fraudulent transfer laws (the Uniform Fraudulent Transfer Act or Uniform Voidable Transactions Act in most states) allow creditors to undo improper transfers. If a transfer was made with intent to defraud creditors, or if the debtor received less than fair value while insolvent or becoming insolvent, the transfer may be voidable. Successful fraudulent transfer claims bring assets back into the estate where they’re available for collection.

Investigation Requirements

Pursuing fraudulent transfers requires investigation to discover what was transferred, when, to whom, and for what consideration. Asset investigation services help identify suspicious transfers. Property records show real estate transfers. Bank records (obtained through discovery) may show asset movements. Investigation builds the evidence needed for fraudulent transfer claims.

Time Limits

Fraudulent transfer claims have statutes of limitations—typically 4-6 years from the transfer date, sometimes less. Prompt investigation matters because delayed discovery may find transfers that are already beyond the limitations period. If you suspect fraudulent transfers, investigate quickly before time limits expire.

📋 Special Collection Situations

Certain situations require specialized approaches to judgment collection.

Business Debtor Judgments

Judgments against businesses may be collectable from business assets, but businesses can dissolve, leaving nothing to collect. If individuals personally guaranteed the debt or if corporate formalities weren’t followed, personal liability of owners may allow collection from individual assets. Alter ego liability can pierce corporate protection when owners treat business assets as personal funds. Business collections often require investigating both business and individual assets.

Real Estate-Rich, Cash-Poor Debtors

Some debtors own real estate but have little liquid cash. Recording judgment liens protects your position against the property. If there’s sufficient equity above homestead exemption and senior liens, you might be able to force sale through execution procedures—though this is often impractical. More commonly, liens ensure payment when the debtor eventually sells or refinances. Patience may be required for real estate-rich debtors.

Self-Employed Debtors

Self-employed debtors can’t be garnished like employees because there’s no employer to receive garnishment orders. Collection from self-employed debtors often requires identifying business accounts that can be levied, discovering accounts receivable owed to the debtor’s business, or pursuing other assets. Self-employed collections often require more investigation than employee collections.

Out-of-Country Debtors

Debtors who’ve left the country present extreme challenges. US judgments generally aren’t enforceable abroad without domestication in foreign courts, which can be difficult or impossible depending on the country. Assets remaining in the US can still be pursued. If the debtor returns or has US assets, collection remains possible. International collections are among the most difficult.

❓ Frequently Asked Questions