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How to Recover Money From a Lawsuit

Once you win a lawsuit, the court will enter a judgment on your behalf, which often is monetary. Although rules vary throughout the United States, courts generally enforce judgments for several years and allow interest to accrue. However, courts do not contact defendants to collect money. If a defendant does not have any assets, then you might not recover any money.

Contact the defendant by sending a professional (calm, objective) letter by certified mail, which could include payment options. You can send a letter to follow up on correspondence from the court. Decide if you will accept a payment plan. Since defendants usually cannot pay judgments immediately, they might agree to establish a payment schedule.

Verify how much time the debtor has to appeal. In most courts, the defendant has 30 days to appeal the judgment. Judgments usually cannot be enforced until the debtor's deadline to file an appeal or make a motion to vacate the award ends.

Research the defendant's assets. You can file a lien against most assets until the judgment is satisfied. If you sued an individual who has assets such as real estate, make sure that the lien is recorded properly.

Review the judgment to ensure that the debtor is named correctly. For example, if you sued a sole proprietor, include the company's legal name (e.g., doing business as) plus the owner's name. The debtor might avoid paying if the judgment contains an error.

Garnish the defendant's wages, especially if he has no significant assets. You also should be able to collect from the defendant's spouse--even if you did not sue the spouse directly. You also might be able to collect from the debtor's business bank accounts.

Difficulty: Moderate

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