How does collections work?
Some people that lose a small claims lawsuit do not proactively pay the amount owed. When this occurs, the person who sued has to start the collection process.
The collection process is a lot easier when you know what assets the party has since you can directly seize those assets.
- Wages. The easiest asset to collect from are wages, meaning, the person you sue has a job and you know where they work.
- Don't know which assets the Defendant has? You will have to go back to court and serve the Defendant for another hearing (called an "Order of Examination") to learn about the other party's assets.
It is important to note that if you win a small claims lawsuit, you will have 10 years (and renewable for another 10) to collect from the other party so even if they don't have assets today, they may have assets later.