### Collecting Judgments: Turning Court Wins into Cash Recovery

Winning small claims judgments represents only the first step in recovery, as many contractors don't voluntarily pay court awards. Understanding collection procedures and strategies helps turn legal victories into actual monetary recovery while avoiding additional expenses that might exceed recovery amounts.

Asset investigation involves researching contractor financial resources, including bank accounts, business assets, real estate holdings, and income sources that might be available for judgment satisfaction. Public records, business databases, and credit reports provide information about contractor assets that can be targeted for collection.

Payment plan negotiations often provide more practical recovery than formal collection procedures, particularly when contractors have limited assets but stable income. Court-supervised payment plans provide structure and enforcement mechanisms while allowing contractors to maintain operations necessary for making payments.

Wage garnishment procedures allow collection from contractor wages or business income in most states, typically limited to 25% of disposable income. Wage garnishment requires identifying employer information and following specific procedural requirements that vary significantly between states.

Bank account garnishment can provide immediate recovery if contractors have attachable bank balances, though many contractors structure their finances to minimize attachable assets. Bank garnishment typically requires identifying specific financial institutions and following strict notice requirements.

Asset seizure through sheriff's departments allows collection of contractor equipment, vehicles, or other tangible property that can be sold to satisfy judgments. Asset seizure can be effective but involves additional costs for storage, sale, and legal procedures that may exceed recovery values.

Business license leverage involves reporting unpaid judgments to contractor licensing boards, which may suspend licenses for contractors who don't pay court awards. License suspension pressure often motivates payment more effectively than formal collection procedures.

Credit reporting of unpaid judgments affects contractor credit ratings and may provide indirect pressure for payment. Some collection agencies specialize in reporting judgment information to credit bureaus and pursuing collection through credit pressure.

Lien procedures against contractor real estate provide long-term collection security if contractors own attachable property. Real estate liens typically survive for years and provide recovery when properties are sold or refinanced, though they may not provide immediate cash recovery.

Settlement negotiations after judgment may produce reasonable recovery even when full collection appears unlikely. Contractors facing collection procedures often prefer negotiated settlements that provide partial recovery while avoiding collection costs and credit damage.

Collection agency services provide professional collection expertise for contractors who specialize in construction industry collection. Collection agencies typically work on contingency fees but may achieve better recovery rates than individual collection efforts.