You have just spent the last 18-24 months litigating your lawsuit. You went to trial and were awarded a judgment, now what?

You are in the same boat a substantial amount of litigants are in after trial. Statistically about 80% of all judgments awarded never get collected because collecting a judgment is often the most difficult part of winning a lawsuit. The court has the power to award you your judgment but you hold the sole responsibility to enforce it. Unfortunately, this leaves you with a piece of paper called a judgment, and the debtor is probably still refusing to pay just as they did before you sued them.

Enforcement Period - Renewal Of Judgments

Superior court judgments are generally enforceable immediately upon entry. However, if the debtor files a timely appeal from the judgment, enforcement may be stayed pending appeal. However, money judgments are stayed on appeal only by posting a bond

California judgments may be enforced for ten years. A judgment may be renewed for another ten years, but only after it is five years old. Then it can be renewed indefinitely if consistently renewed.

Amount Recoverable Under A Judgment

The amount required to satisfy a money judgment is the total amount of the judgment as entered or renewed, plus costs added after judgment and accrued interest on the judgment, minus any payments or partial satisfactions or amounts no longer enforceable.

The judgment creditor is entitled to recover interest on the principal amount of the judgment that remains unsatisfied. Effective January 1, 1983, the rate of interest on a money judgment is 10% per annum. Interest accrues from the day the judgment is entered. Where the judgment is payable in installments (e.g., support judgments), interest accrues from the date each installment becomes due unless the judgment provides otherwise.

Postjudgment interest is not compounded unless the judgment is renewed. When a judgment is renewed, whatever interest has accrued on the original judgment is added to and becomes part of the principal amount of the judgment.

Judgment Collection Methods

• Voluntary Payment: Even after you have obtained the judgment, you can still make payment arrangements with the debtor. Some judgment debtors will voluntarily pay to clear the judgment from their credit report.
• Abstract of Judgment: This document is issued by the court clerk for a fee. It is also referred to as a judgment lien on real property, it creates a lien and clouds title to any real property owned by the debtor within the county in which it is recorded. The judgment debtor cannot sell or refinance the property without negotiating with the creditor or paying off the lien.
• Judgment Lien on Personal Property: This is very useful when the debtor owns a business. When filed with the Secretary of State, this document creates a lien on accounts receivable, equipment, farm products, inventory and negotiable documents of title.
• Writ of Execution: This document is issued by the court clerk for a fee. It tells the Sheriff how much to collect on the judgment. A Writ of Execution is required for most judgment enforcement procedures such a wage garnishment or bank account seizures.
• Bank Account Levy: Upon delivery of the Writ of Execution, written instructions and a fee, the Sheriff will issue a Notice of Levy which freezes the bank accounts of the judgment debtor.
• Wage Garnishment: The Sheriff can, upon proper application and payment of a fee, notify the debtor's employer to withhold money from the debtor's pay check. The employer can withhold up to 25% of the debtor's net pay.
• Rent Garnishment: If you obtain information that a third party owes money to the judgment debtor, you can make arrangements to collect that debt directly. A common example is a rent garnishment. If the debtor owns a rental property, you can send the Sheriff, upon proper application and payment of a fee, to collect the rent directly from the tenant as a payment toward the judgment.
• Till Tap/Keeper Levy: If the debtor owns a business, the Sheriff, upon proper application and payment of a fee, can take money directly from the cash register, which is commonly called a till tap. For larger judgments, the Sheriff can leave a "keeper" in charge of the business for up to 8 hours. The "keeper" will collect all the cash and checks that come into the cash register for that day and can also prevent credit card transactions.
• Vehicle Levy: In certain cases, you can have the Sheriff, upon proper application and payment of a fee, seize the judgment debtor's car and have it sold at auction. This can be very expensive and is better suited for large judgments.

Special Procedures In Aid Of Enforcement Of Judgments

• Examination of Judgment Debtor and Third Parties: An examination of a judgment debtor or third party is the postjudgment equivalent of a deposition. An examination can be used to identify property in the possession or control of the judgment debtor or a third person (e.g., a nondebtor spouse), to learn about property the debtor may obtain in the future, and to require the debtor or third person to turn over property to the levying officer.
• Written Interrogatories to Judgment Debtor: A judgment creditor is entitled to serve written interrogatories on a judgment debtor to obtain information to aid in enforcement of a money judgment.
• Inspection Demand to Judgment Debtor: A judgment creditor may serve an inspection demand on a judgment debtor to obtain information to aid in enforcement of a money judgment.