Judgment Collection Playbook
A comprehensive strategic framework for judgment collection: from initial triage through enforcement, negotiation, and final resolution. This playbook covers the complete collection lifecycle with proven tactics, documentation best practices, and decision frameworks.
Education Only: This content is for educational purposes and does not constitute legal advice. Laws vary by state. Consult with a licensed attorney for guidance specific to your situation.
The Collection Lifecycle
Judgment collection is not a single action—it's a strategic process with multiple phases, decision points, and tactical options. This playbook provides a structured framework to maximize recovery while maintaining compliance and documentation.
Whether you're a creditor, attorney, or collection professional, this guide walks you through the complete lifecycle from judgment entry to final resolution.
Triage & Documentation
Secure judgment documents, calculate balances, research debtor, establish tracking systems.
Initial Contact & Assessment
Send demand letter, assess debtor response, evaluate cooperation level and payment capacity.
Strategy Selection
Choose between negotiation (settlement/payment plan) or enforcement (garnishment/levy/lien).
Execution & Monitoring
Execute chosen strategy, monitor compliance, adjust tactics as needed, document all actions.
Strategic Decision Framework
Not all judgments should be collected the same way. Your strategy depends on debtor cooperation, asset availability, judgment size, and cost-benefit analysis.
Decision Tree: Which Collection Path?
✅ Cooperative Debtor + Verifiable Income
Best Path: Negotiated payment plan or settlement. Lower cost, faster resolution, higher compliance rates.
⚠️ Unresponsive Debtor + Known Assets
Best Path: Enforcement (garnishment, levy, or lien). Higher cost but necessary for recovery.
❌ Judgment-Proof Debtor (No Assets/Income)
Best Path: Monitor and wait. Avoid enforcement costs. Revisit when debtor's situation improves.
💼 High-Value Judgment + Complex Assets
Best Path: Hire collection attorney. Professional expertise justifies cost for large recoveries.
Negotiation Tactics
When debtors are willing to engage, negotiation often produces better results than enforcement. Here's how to structure effective settlement and payment plan offers.
Establish Communication
Send professional demand letter. Use respectful tone. Provide clear payment deadline and consequences. Open the door for negotiation while maintaining firmness.
Get Demand Letter TemplateAssess Debtor's Capacity
Request financial disclosure. Verify income and expenses. Determine realistic payment capacity. This intelligence guides your negotiation range.
Structure Settlement Offers
Lump-sum settlements typically range 40-70% of balance. Offer discount for immediate payment. Include interest freeze and satisfaction of judgment in writing.
Use Settlement Offer BuilderDesign Payment Plans
Monthly payments over 12-36 months. Require down payment (10-20%). Include default clause. Document agreement in writing with signatures.
Use Payment Plan CalculatorDocument Everything
Get all agreements in writing. Use payment plan agreement templates. Track every payment. Maintain communication log. Protect yourself in case of default.
Get Payment Plan AgreementEnforcement Options
When negotiation fails or debtors are unresponsive, enforcement mechanisms allow you to collect through legal process. Each option has costs, timelines, and strategic considerations.
💼 Wage Garnishment
Court order directing employer to withhold portion of debtor's wages (typically 25% of disposable income). Reliable for employed debtors with stable income.
$100-$500 filing fees
2-6 weeks to start
Employed debtors
🏦 Bank Levy
Court order freezing and seizing funds from debtor's bank account. One-time seizure of available balance at time of levy.
$100-$400 per levy
1-3 weeks
Known bank accounts
🏠 Judgment Lien
Legal claim against debtor's real property. Lien must be satisfied before property can be sold or refinanced. Long-term collection strategy.
$50-$200 filing
Immediate filing
Property owners
Documentation Best Practices
Thorough documentation protects you legally, prevents disputes, and provides evidence if enforcement is challenged. These practices are non-negotiable.
✅ Maintain Collection Ledger
Track all balances, interest accrual, payments received, and adjustments. Update after every transaction. This is your single source of truth.
✅ Log All Communication
Date, time, method, content, and outcome of every contact. Keep copies of letters, emails, and notes from phone calls.
✅ Get Everything in Writing
Verbal agreements are unenforceable. Use written settlement agreements, payment plan contracts, and satisfaction of judgment documents.
✅ Preserve Proof of Service
Keep certified mail receipts, process server affidavits, and delivery confirmations. Proof of service is required for enforcement.
✅ Organize Case Files
Maintain both physical and digital backups. Include judgment documents, correspondence, payment records, and enforcement filings.
Common Collection Mistakes to Avoid
❌ Acting Too Slowly
Delays reduce recovery rates. Assets disappear, debtors relocate, and cooperation decreases. Start collection efforts immediately after judgment.
❌ Skipping Asset Research
Enforcement without asset intelligence wastes money. Research employment, bank accounts, and property before filing garnishments or levies.
❌ Using Aggressive or Harassing Tactics
Hostile communication reduces cooperation and may violate consumer protection laws. Professional, respectful tone gets better results.
❌ Ignoring Settlement Opportunities
Enforcement is expensive and time-consuming. A negotiated settlement often recovers more net dollars faster. Stay flexible.
❌ Poor Record-Keeping
Missing documentation leads to disputes, missed payments, and legal complications. Document everything from day one.
Your Next Steps
Start Your Collection
Get the free First Moves Checklist and begin your collection process with proven triage steps.
Download Free ChecklistExplore Collection Options
Deep dive into each enforcement and negotiation option with detailed guides and decision frameworks.
Read Collection Options