Some Thoughts on Collecting A Judgment

Having recently “won” my small claims case, like many litigants I now have to find a way to make my white piece of paper into a green piece of paper. Getting a judgment as we all know, is only the first battle in a long war to get the deadbeat to pay (no, I’m not bitter). So the guy in the black robe agreed with me that the db (deadbeat) should pay me. He hammered the gavel, looked sternly at the other fellow, and ruled for me.

Then he sent us both along to play nicely.

What’s a judgment creditor to do? Well, first of all, try to get paid before the db declares bankruptcy. If you’re the only creditor, then maybe you’ll luck out and get paid before the bankruptcy. If the guy’s got a lot of debt, maybe he was just waiting to get everyone out of the woodwork until he fired off his bk. Well, assuming he’s solvent, I think the following steps might be in order.

1. Get an abstract of judgment and file it in all counties where the guy (I know I use “guy” but “gals” can be deadbeats, too, so fellas don’t be offended for the bum rap, I mean deadbeat to be gender inclusive!) has any real property. A lien will attach to any property, and if you’re lucky and the guy has equity and he refi’s, the escrow company may eventually give you a call and ask what it’ll take to get you to release your lien. Nice security measure, but by just filing an abstract, we’re not getting paid any time soon. Yes, we get interest at the (usurious!) rate of 10% per year, but cash is king. So fire away the abstract of judgment. It’s hedging your bets and may force the db to opt for a chapter 13 instead of a 7.
2. Send out the debtor’s questionnaire – (this is California). The db will have to answer and send back or risk being in contempt of court. If he fills it out you’ve got some info you can use for wage garnishments and bank levies.
3. Conduct a debtors’ judgment exam. It’s a waste of your time, but it’s also a waste of the db’s time. It’s disruptive to his life and hopefully you can force the db to pony up documents and answer your questions. Launch a bank levy once you find out banking information.
4. Prepare a wage garnishment. You can have the db’s employer garnish a portion of the db’t wages each month. Slow pay is better than no pay, and a wage garnishment can tap up to 25% of the db’s pay each period. Db’s with child support obligations being taken from their checks, ironically, are better protected against this mechanism because they’re stiffing their ex’s and poor children. Feel the righteous indignation!
5. Hit the spouse’s paycheck if you can. In California a spouse’s income is community property and community property is liable toward the satisfaction of a spouse’s debt, community or separate! So if you can figure out where the deadbeat’s spouse works, it’s worth a shot! (Note this is not legal advice and you should consult a lawyer before attempting this – there are exceptions).
6. Go after vehicles. Call your local sheriff for the procedure and the cost! If you see the db has a lot of toys, maybe they’re paid off and he can stand to part with them through a sheriff’s sale. But if there isn’t any equity (or worse, they’re leased), then you’re SOL and you’ve spent a lot of money and thrown good money after bad trying to get the db to pay.

That’s all I’ve got off the top of my head. If I think of some other ways, I’ll update the post. Good luck to you all (and to me, as I try to trace out of state property, domesticate my judgment to a foreign state, and try to put a lien on some properties!)

How to Collect Child Support

So you’ve got a child support order. Congratulations. Now what? If you’re lucky and the payor is a conscientious person, you’ll be paid regularly, on time, and you’ll get the right amount. If you’re not that lucky, then welcome to that very popular club for people who need to learn how to get blood from a turnip (turnips- that’s what I sometimes call people who don’t pay child support – I’m sure you’ve got a better name for them).
The simplest way to enforce your order (and the least expensive) is to pick up the phone (or visit the website) of your local DCSS (Department of Child Support Services). They are charged with the ominous task of getting blood from the turnips, er, that is, collecting child support and keeping track of who paid what when and where. It’s a tough job but someone’s gotta do it. They do not technically represent anyone but the state, so they do not represent you. However, the state (California in this case) has a vested interest in keeping its children supported. If DCSS takes over enforcement of the support order, then they’ll start collecting on your behalf and send you a check (or even direct deposit) every month. They usually use a legal document called a wage assignment to do the deed. A wage assignment is served upon the payor’s employer and the employer is obliged to take money out of the payor’s check and forward it to the disbursement unit at DCSS.

It’s that easy.  Once you get the ball rolling, the DCSS is on the case.