Small Claims Judgement Non-Payment

[room335]

New Jersey

Is there any recourse should a defendant still not pay me money owed (over $700) after a judge rules in my favor. I was told recently that if a defendant is ordered to pay (and still does not pay after the Judge's ruling), there is no incentive the courts can impose to get him to pay (like jail time, penalties, etc)....

I am thinking of suing someone in small claims court who owes me over $700 and need to determine whether it's worth suing him. He signed a contract, so proving my case is straight ahead, but I don't know if it's worth it if there's little incentive for him to pay. Thanks in advance.

 

[Rexlan]

New Jersey

Is there any recourse should a defendant still not pay me money owed (over $700) after a judge rules in my favor. I was told recently that if a defendant is ordered to pay (and still does not pay after the Judge's ruling), there is no incentive the courts can impose to get him to pay (like jail time, penalties, etc)....

I am thinking of suing someone in small claims court who owes me over $700 and need to determine whether it's worth suing him. He signed a contract, so proving my case is straight ahead, but I don't know if it's worth it if there's little incentive for him to pay. Thanks in advance.

Lot's of incentive for the losing party to pay. Once you get a judgment you can then docket it and it will go on their credit report. It is good for many years and eventually you have a good chance of collecting it, plus interest, if the debtor has any assets.

You can also have his property, bank account, auto, etc. attached with the judgment .... well worth the effort to obtain if it is a legitimate claim. SM court is also inexpensive and quick. No attorney required.

 

[sandyclaus]

OF course, the courts issue the judgment, but don't do the collection. That task is left up to the judgment creditor.

Most courts do some sort of Debtor's Exam, a hearing at which the judgment debtor must appear to answer questions about their assets, bank accounts, job, anything which can be garnished, attached, or had a lien placed on it for the purpose of collecting and satisfying the debt.

If the judgment debtor fails to appear for the court-ordered hearing, some judges will issue a bench warrant for failure to appear (in the amount of the debt). That can be a handy collection tool, especially when the person can be arrested at that point (not for failing to pay the debt, but for failing to appear ONLY).