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Judgment Enforcement – The Step-by-Step Course

Want more examples?
DEF: CAUSE
Turn to Appendix 1 at the back of this course. This is an
example of a typical small claims judgment in the State of OF ACTION
California, where judgments are good for 10 years, and renewable. The incident or loss that

Take a minute to look it over. Look at the top to see in which court gave rise to the lawsuit
the judgment was rendered. What is the date of the judgment? What and the judgment:
is the amount? Are costs included? Is it against one defendant or 1. Failure to pay
two? Does it have the phone number of the plaintiff who is now the back loan
“creditor”? Does it look to you like the defendant might have assets? 2. Auto accident
Has the judgment expired? 3. Rent not paid
4. Insurance
company
Also, Appendix 2. This is a medium-size judgment, about wouldn’t pay for
32K. Again, locate the court, the date of the judgment, the the home fire
amount, and so on. This is a well-written judgment, because it really Etc. Etc. There’s
details the decision of the court. probably a million
different “causes of
And, Appendix 3. This is a Wisconsin Judgment, and it’s action.”
quite sizeable, which may be good or bad. Sometimes smaller
and medium-sized judgments are the best. Again, look at the particulars on this judgment.
Did the defendant show up? Or is it by default? Note that the judgment amount is actually
handwritten. Sometimes judgments can be quite informal. (Note: See 2 more sample

judgments on the Forum under “Peter’s Course Files” #13 and #14.)

80% aren’t enforced? Is that really true?

Have you heard that nearly 80% of judgments are never collected at all? Well, yes, it is
true. Why are they never collected? In many cases the judgment debtor (the JD) is
banking on the probability that the creditor won’t know what to do with the judgment, and

will probably give up after a while, and go away. judgment, and not able to pay the money
right then. However, things can change. A year or so later, when a Judgment Enforcer
takes over the judgment, the JD may well have the money to pay. But the creditor has no
way of knowing that. In other cases, the JD may
80%? Yes, it’s true, but simply be angry at the creditor, and refuse to pay.
remember that there’s a Or, let's face it, some people are chronic

good reason why so few deadbeats, or just plain dishonest. You don’t want
are enforced. those judgments.

My estimate is that while 80% of judgments
are never collected, at least 30% of those not enforced are definitely enforceable. I’ll say

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