What Can I Do if Someone Won’t Pay After a Lawsuit?

Legal Questions Answered

Winning a lawsuit can feel like a huge win—it proves your claim, confirms your rights, and points the way to justice. But what happens if the other party refuses to pay? Sadly, this situation happens more often than you might think, leaving many people confused and frustrated. Even though a court decision is legally binding, enforcing it can be a separate and sometimes tricky process. Let’s break down what options you have and how you can move forward.

The Answer:
A court judgment doesn’t enforce itself. This means that even though the court has officially decided you are owed money, it’s up to you—the person owed the money—to take steps to make that happen. Courts in Canada and the United States provide ways to enforce judgments, such as taking money directly from wages, freezing bank accounts, or putting liens on property. However, the rules and options depend on where you are, the debtor’s financial situation, and the kind of judgment involved.

In real terms, how successful you are in collecting the judgment often comes down to how much effort you’re willing to put into the process. The debtor’s financial situation also plays a big role. If the person has little to no income or assets, they might be considered “judgment proof,” which can make collecting almost impossible.

Key Considerations:

  • Jurisdictional Differences: The rules about enforcing judgments vary a lot. For instance, in the U.S., wage garnishment is a common tool, but in Canada, it’s only available in some provinces. Knowing your local laws is critical.
  • Debtor’s Assets: If the person who owes you money doesn’t have assets like property, savings, or a steady income, your options may be very limited. This is often a big hurdle.
  • Time and Cost: Enforcement doesn’t happen automatically. You’ll likely need to file extra legal paperwork, attend hearings, and sometimes hire professionals. All of this takes time and costs money.
  • Deadlines for Action: Judgments don’t last forever. Most places have time limits for starting enforcement actions, so you need to act quickly.

Legal Remedies:
There are several tools available to help you enforce a judgment. These include:

  1. Wage Garnishment:
    • In many U.S. states, creditors can take a portion of the debtor’s paycheck. Limits are in place to ensure the debtor can still meet basic needs.
    • In Canada, garnishment is allowed in some provinces, like Ontario, but not everywhere. Court approval is often required.
  2. Freezing and Seizing Bank Accounts:
    • With a court order, creditors can freeze the debtor’s bank accounts and take money directly. This works well if the debtor has cash on hand.
  3. Seizing Property:
    • Items like cars, jewelry, or even real estate can be taken and sold to pay the debt. This also needs court approval and depends on the rules in your area.
  4. Liens on Property:
    • A lien prevents the debtor from selling or refinancing their property without paying off the debt. This can take time but is often effective.
  5. Contempt of Court:
    • If someone ignores court orders on purpose, they could face fines or, in rare cases, jail time.

What to Do Next:

  1. Get a Certified Judgment: Make sure you have a certified copy of the court’s decision. You’ll need this to start any enforcement actions.
  2. Find Out What the Debtor Owns: Use legal tools like subpoenas or discovery hearings to figure out what the debtor owns and where their money is.
  3. File for Enforcement: Depending on what you find, file the necessary paperwork to garnish wages, place a lien, or freeze bank accounts.
  4. Hire Help if Needed: If the process feels overwhelming, think about hiring a lawyer or collections agency to help you.
  5. Be Patient and Realistic: Collecting a judgment takes time, and in some cases, you might not get everything you’re owed. Stay persistent but realistic about your expectations.

Final Thoughts:
Winning a lawsuit is a big step, but it’s often just the start of the journey to recover what’s owed to you. Enforcing a judgment takes effort, time, and sometimes additional costs. By understanding your options, acting quickly, and getting help when needed, you can improve your chances of success. The process may not be simple, but with the right approach, you can achieve a fair outcome.

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