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The Ultimate Guide to Judgment Collection

(Updated for 2025)

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Winning a lawsuit is a victory, but it's only the first step. The real challenge begins when you ask, "How can I collect my judgment in California?" The court won't collect the debt for you; the responsibility falls on you to navigate the process. This guide provides updated strategies and resources for judgment collection in California in 2025.​​​

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The Fundamentals of Judgment Collection

Before diving into specific methods, it's crucial to understand the core principles of judgment collection:

  1. Debtor's Assets are Key: To collect, the debtor needs to have something of value – income, assets, or the potential for future assets. A judgment is only as good as the debtor's ability to pay.

  2. Organization is Essential: Keep meticulous records of all documents, actions taken, contact information, and expenses incurred. California has specific procedures and deadlines. Missing them can invalidate your judgment.

  3. Persistence Pays Off: Debtors may be reluctant to pay, even with a court order. Be prepared to explore multiple collection methods.

  4. Renew Your Judgment: California judgments are valid for 10 years. If you haven't collected by then, you must renew the judgment before it expires to maintain your right to collect for another 10 years.

Pro Tip:

Immediately record an Abstract of Judgment to create a lien on the debtor's real property, but wait until the appeal period has expired before aggressively pursuing collection.

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Judgment Collection Files

​​​Judgment Collection Options: The Basics

  1. Self-Help: You take direct action to locate the debtor's assets and use legal tools (wage garnishments, bank levies, liens) to recover your funds. This requires effort and knowledge but allows you to keep everything you collect.

  2. Collection Agencies: You hire a professional agency to pursue the debt on your behalf. They typically work on a contingency basis, taking a percentage of what they recover.

  3. Judgment Buyers: You sell your judgment to a third party for a lump-sum payment. They take over the collection efforts, providing you with immediate cash but at a discounted rate.

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1. Self-Help Collection: Your Starting Point

Begin by exploring self-help options. The California Courts Self-Help Center offers valuable tips for collecting your judgment. Here you'll find guidance on researching debtor income and assets, wage garnishments, and collecting from property like bank accounts and real estate.

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You'll find a guide to conduct a debtor's examination in which you request a court order requiring the debtor to appear and answer questions about their assets under oath. While this can be useful, be aware that debtors often fail to appear, making it a potentially time-consuming option. There are strict procedures to follow when scheduling a Debtor's Exam.

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Pro Self-Help Collection Tip:

Send a formal demand letter immediately after obtaining the judgment. State the facts, the judgment amount, accruing interest, and the potential negative impact of non-payment on their credit.

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2. Judgment Collection Agencies and Services: A Common Choice

Collection agencies pursue the debt on your behalf, typically taking a large percentage of what they recover. Before hiring a collection agency, verify their legitimacy and business practices. Look for membership in industry trade groups and check their licensing.​ Judgment Coilleciton Agencies work on a contingency basis, meaning they only get paid if they collect.

 

The percentage they take usually varies between 33% and 50%. A good collection agency will be transparent about their methods, fees, and progress.

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Pro Collection Agency Tip:

Carefully check how the costs of collecting your judgment and the benefits of accrued interest on your judgment are allocated. Some collection agencies may allocate all collection costs to you, or keep all of the accrued interest for themselves.

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3. Judgment Buyers: An Easy Option

Judgment buyers offer a lump-sum payment for your judgment, taking over the collection efforts  themselves. You'll receive less than the full judgment amount, as the buyer assumes the risk and cost of collection.

 

The main advantage is getting cash upfront, avoiding the uncertainty and time commitment of collection. Shop around and compare offers from different judgment buyers.

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Pro Judgment Buyer Tip:

Since you'll assign the judgment to the buyer, transferring all rights to collect, be sure you get paid in verifiable funds at the time of assignment.

Judge Gavel

Advanced Collection Methods: Leveraging the Courts

If voluntary payment isn't forthcoming, you'll need to use the court system to enforce your judgment. Here are some common methods:

  • Wage Garnishment: A percentage of the debtor's wages is withheld and paid to you. There are legal limits to how much can be garnished.

  • Bank Levy: Seize funds from the debtor's bank account. You'll need the bank name and account information.

  • Real Property Lien: Place a lien on any real estate owned by the debtor in California. This can force payment when the property is sold or refinanced. Record an Abstract of Judgment in the county where the property is located.

  • Personal Property Lien: Place a lien on the debtor's personal property (vehicles, equipment, etc.).

  • Writ of Execution: This court order allows a sheriff or levying officer to seize and sell the debtor's assets to satisfy the judgment.

  • Till Tap: If the debtor owns a business, you can seize cash directly from the cash register.

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    Pro Tip:

    Be aware of the challenges in self-help judgment collection including:

    Debtor Bankruptcy: Bankruptcy can halt collection efforts.

    Debtor Refusal: Debtors may simply refuse to pay.

    Hidden Assets: Debtors may conceal assets.

    Lack of Assets: The debtor may genuinely have no assets.

    Business Entity Protection: The debtor may be protected by a business entity (LLC, Corp).

    Cash Payment for Judgment

    Advanced Collection Methods: Collection Agencies

    • How They Work: Collection agencies pursue the debt on your behalf, typically taking a percentage of what they recover.

    • Due Diligence is Key: Before hiring a collection agency, verify their legitimacy and business practices. Look for membership in industry trade groups and check their licensing.

    • Compliance is Mandatory: Ensure the agency adheres to the Fair Debt Collection Practices Act (FDCPA) and California-specific regulations regarding communication with debtors.

    • Fees: Agencies usually work on a contingency basis, meaning they only get paid if they collect. The percentage they take varies.

    • Transparency is Crucial: A good collection agency will be transparent about their methods, fees, and progress.
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    Pro Tip: Questions to Ask Collection Agencies

    • Do you specialize in my industry?

    • Are you certified by any industry groups?

    • Can you tailor your services to suit my needs?

    • What is your reputation?

    • Will you pay me upfront?

    • What is your success rate?

    • Are you transparent in your collection efforts?

    • Do you charge upfront fees?

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    Advanced Collection Methods: Judgment Buyers

    • Get Paid Immediately: Judgment buyers offer a lump-sum payment for your judgment, taking over the collection efforts themselves.

    • Discounted Payout: You'll receive less than the full judgment amount, as the buyer assumes the risk and cost of collection.

    • Speed and Certainty: The main advantage is getting cash upfront, avoiding the uncertainty and time commitment of collection.

    • Due Diligence: Shop around and compare offers from different judgment buyers.

    • Assignment: You'll assign the judgment to the buyer, transferring all rights to collect.

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    Choosing the Right Collection Agency or Judgment Buyer

    Here's what to consider when selecting a professional to help with judgment collection:

    1. Fees and Recovery Rates: Compare the percentage the agency charges and their historical recovery rates. A higher recovery rate, even with a higher percentage, might yield more money in your pocket.

    2. Collection History: Ask for references from previous clients.

    3. Specialization: Does the agency specialize in your type of judgment (e.g., family law, labor board awards, small claims)?

    4. Enforcement Methods: Do their preferred methods align with the debtor's assets and circumstances?

    5. Licensing and Reputation: Verify proper licensing and check their reputation with the Better Business Bureau, online reviews, and industry associations.

    6. Upfront Fees: Be wary of agencies that demand large upfront fees.

    7. Transparency: Do they clearly explain their process and keep you informed of their progress?

     

    Here's an example to illustrate the importance of comparing fees and recovery rates:

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    Calculating a Judgment's Value

    How Much Does Judgment Collection Cost?

    Judgment collection fees vary depending on the agency, the judgment size, and the complexity of the case. Here are common fee structures:

    • Contingency Basis: The agency only gets paid if they collect.

    • Fixed-Price Basis: The agency pays you a fixed amount upfront for the judgment.

    • Variable Costs: A combination of fixed fees and contingency percentages.

    Working with a Judgment Collection Service in Three Steps

    1. Select an Agency or Buyer based on your research of their collection abilities.

    2. Sign Assignment Documents: You'll assign the judgment to the agency.

    3. Receive Updates (or Payment): With a collection agency, you'll receive periodic updates. and with some luck, after time, payments.

    Working with a Judgment Buyer in Two Steps

    1. Shop your judgment for the best offer.

    2. Sign Assignment Documents and get paid immediately. You'll receive documents to assign the judgment to the agency or buyer.

    Agreement to Sell Your Judgment

    Collecting a judgment in California requires knowledge, persistence, and a strategic approach. By understanding the available methods, conducting thorough research, and potentially partnering with the right professionals, you can significantly increase your chances of recovering what you're owed. Good luck!

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