There are a variety of reasons why a debtor might refuse to pay or try to evade judgment payments. Here are some common tactics that debtors use to avoid paying what they owe:
One of the most common reasons debtors don’t pay a judgment is that they may not have the funds or assets to do so. Sometimes, they may claim to be "broke" or unable to pay despite the court ruling in your favor. While this may be true in some cases, it is often used as a delaying tactic.
Debtors might attempt to hide assets, claim financial hardship, or shift their money into protected accounts, making it difficult for you to collect. A judgment enforcement attorney can help you uncover hidden assets through asset discovery processes, ensuring that debtors can’t evade payment by claiming poverty.
Some debtors may simply delay or avoid paying by ignoring calls, refusing to engage in negotiations, or failing to respond to requests for payment. While they can’t stop you from legally collecting the debt, they can make the process more cumbersome and time-consuming.
This strategy is especially common when the debtor believes that the creditor may not have the resources or will to pursue enforcement. Debtors may think that they can drag things out long enough that creditors will give up, but judgment collection attorneys have the tools to push back and ensure payment happens.
Another reason a debtor might not pay a judgment is by using legal exemptions. For example, they may claim that certain income or property is exempt from collection under state law. While it’s true that some assets are exempt from collection (e.g., some retirement funds, a portion of wages, etc.), many debtors misuse these exemptions to avoid paying what they owe.
A judgment debt attorney can help you navigate these exemptions, ensuring that the debtor’s claims are legitimate and, if necessary, finding ways to target non-exempt assets to enforce the judgment.
In some cases, debtors may attempt to discharge the debt through bankruptcy. This is particularly common if the debtor’s financial situation is in serious trouble. While bankruptcy can erase certain types of debts, it does not eliminate all judgments. Non-dischargeable debts, such as those arising from fraud or willful misconduct, may remain even after bankruptcy proceedings.
A judgment enforcement attorney can advise you on the best course of action when a debtor files for bankruptcy. They can help you determine whether the debt can be recovered post-bankruptcy or whether further legal action is necessary.
With the enactment of the 2026 FAIR Business Practices Act, the New York Attorney General now has expanded power to scrutinize debt collection across the state. This law prohibits "unfair and abusive" practices in the collection of commercial debts. At David I. Mizrahi Law, P.C., we ensure that our pursuit of non-dischargeable debt—especially judgments involving fraud—remains strictly compliant with these new standards.
This protects you from aggressive counter-claims and statutory penalties while we work to recover your funds.
While winning a judgment is an important step, it is not always the final one in getting your money. Here are some strategies that judgment attorneys use to help creditors collect:
One of the first steps a judgment enforcement attorney will take is to conduct asset discovery. This process involves searching for any hidden assets that the debtor may own but is not openly disclosing. Assets can include real estate, bank accounts, personal property, or business assets. If the debtor tries to hide their assets or money, a judgment attorney can utilize tools like:
At David I. Mizrahi Law, P.C., we utilize CPLR § 5223 Disclosure to pierce through the debtor's corporate veil and uncover the true financial picture. By issuing CPLR § 5224 Information Subpoenas specifically to fintech platforms, merchant processors, and third-party vendors, we identify hidden revenue streams that traditional bank searches often miss. If a debtor claims they are "broke" but their payment processor shows daily sales, we have the evidence to move for a CPLR § 5225 Turnover Order.
This process is critical in identifying assets that can be used to pay down the judgment.
If a debtor is ignoring a court order to pay a judgment, a contempt motion can be filed to force them to comply. When a debtor refuses to pay, even after a court ruling, they may be held in contempt of court, which can lead to penalties such as fines, wage garnishments, or even jail time in extreme cases.
A judgment attorney can assist with filing a contempt motion, forcing the debtor to appear in court and explain why they haven’t made any payments. If the court finds that the debtor is deliberately avoiding payment, harsher penalties may follow.
There are other strategies that judgment collection attorneys use to help creditors get paid. These legal tools can target the debtor’s income, property, and business interests:
A debtor exam is another powerful tool used to uncover a debtor’s financial situation. During a debtor exam, the debtor is required to answer questions under oath about their income, assets, and any attempts to avoid payment. This examination often takes place in front of a judge, and the debtor is legally obligated to provide truthful information.
If the debtor fails to cooperate or provides false information, they can face serious legal consequences. A judgment lawyer can facilitate debtor exams and use the information obtained to strengthen your case and ensure payment.
If the debtor has accessible income or assets, a judgment collection attorney can take steps to secure payment through wage garnishment, bank levies, or property liens. These legal actions involve seizing the debtor’s wages or assets to pay down the judgment.
When executing a bank levy or CPLR § 5222 Restraining Notice, we carefully account for the 2026 EIPA (Exempt Income Protection Act) thresholds. As of early 2026, with the New York minimum wage increase to $17.00/hour in NYC, a certain baseline (approximately $4,080 for NYC debtors and $3,840 upstate) is automatically exempt from restraint. Navigating these indexed limits is essential to avoid having your restraint vacated or facing costly sanctions for over-collection.
A judgment attorney will work with the court to get these orders in place, which can force the debtor to pay or face severe financial consequences. Our firm specifically manages the mandatory CPLR § 5222-a exemption notices and forms to ensure your levy is not rendered void by a technicality.
Getting a court judgment is a significant victory, but it’s only the beginning of the collection process. Debtors often use various tactics to avoid paying, which can be frustrating and time-consuming. However, by working with an experienced judgment attorney, you can navigate these challenges and take effective steps toward collecting the money you’re owed.
If your judgment isn’t getting paid, don’t wait. A judgment collection lawyer can help you turn your court victory into real payment. Contact us at David I. Mizrahi Law P.C. to learn how we can help you enforce your judgment and get the results you deserve
The first step is to consult with an attorney for judgment collection. They can help you understand your options for enforcement, including asset discovery, contempt motions, and debtor exams. An attorney will assist in taking the legal steps necessary to collect the debt and protect your interests.
While filing for bankruptcy may discharge certain debts, some judgments are non-dischargeable, such as those resulting from fraud or willful misconduct. A judgment attorney can help you determine whether your debt can be recovered post-bankruptcy and advise you on further legal steps.
A debtor examination is a legal process where the debtor is required to answer questions about their financial situation under oath. This can help uncover hidden assets or income that may be used to satisfy the judgment. Judgment attorneys often use debtor exams as a powerful tool to enforce judgments and ensure payment.
The time limit for collecting on a judgment varies by state, but in general, you can collect for several years. Specifically, in New York, a judgment remains valid for 20 years, but it must be renewed within 10 years to preserve its enforceability on real property liens, according to New York’s Civil Practice Law and Rules (CPLR). However, it’s crucial to act quickly to maximize the chances of recovery. A judgment enforcement attorney can help you initiate collection procedures before the time limit expires and explore options for renewing the judgment.
The FAIR Business Practices Act (effective Feb 2026) expands protections for small businesses against "abusive" collection tactics. This means your attorney must be more precise than ever with demand letters and UCC-1 filings. At David I. Mizrahi Law, P.C., we have already updated our enforcement protocols to align with these 2026 standards, ensuring your recovery is both aggressive and legally sound.
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