You won a civil judgment. The court agreed you are owed money. And then the debtor told you they have nothing. This is one of the most frustrating situations in debt collection — and one of the most common.
The good news: “I have no money” is not a legal defense to a judgment. Debtors routinely understate or conceal assets. And even debtors with genuinely limited resources are not immune from collection — it is a matter of identifying the right enforcement tool and applying it correctly.
This guide covers the primary methods creditors use to collect judgments from debtors who claim to be broke.
1. Bank Levy — The Most Immediate Tool
A bank levy (also called a bank account levy or bank garnishment) allows a judgment creditor to seize funds directly from a debtor’s bank account. The process requires identifying the financial institution where the debtor holds funds, obtaining a writ of execution from the court, and serving it on the bank.
The challenge is knowing which bank to target. This is where a bank account locate becomes essential. Serving a levy on the wrong bank wastes court fees and gives the debtor time to move funds. Accurate, current account information dramatically improves levy success rates.
Most bank levies freeze the account at the moment of service and hold funds for a statutory period — typically 10 to 30 days depending on the state — during which the debtor can claim exemptions. Amounts above exempt thresholds are then turned over to the creditor.
2. Wage Garnishment — Continuous Collection
Wage garnishment intercepts a portion of the debtor’s paycheck before it is paid out. Unlike a bank levy — which captures only what is in the account at the moment of service — wage garnishment is continuous. Each pay period, a portion of the debtor’s wages is redirected to satisfy the judgment.
Federal law caps wage garnishment at 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage, whichever is less. Many states impose stricter limits.
To initiate wage garnishment, you need the debtor’s current employer information. A professional employment locate identifies where the debtor is currently working — critical because employment changes frequently and an outdated employer address results in a failed garnishment.
Note that some states prohibit wage garnishment for consumer judgment debts. Texas, Pennsylvania, North Carolina, and South Carolina are notable examples. In those states, bank levy and property remedies become more important.
3. Property Liens — Long-Term Leverage
A judgment lien attaches to real property the debtor owns in the county where the lien is recorded. This does not force an immediate sale, but it means the debtor cannot sell or refinance their property without satisfying the judgment. In states where homestead exemptions are limited, a lien on the primary residence can be a powerful long-term collection strategy.
Liens also attach to property acquired after the lien is recorded. A debtor who owns nothing today but inherits property, receives a settlement, or buys real estate in the future will have to satisfy your judgment before they can clear title.
To record a judgment lien, you typically file an abstract of judgment with the county recorder or clerk in the county where the property is located. The process and fees vary by state.
4. Writ of Execution Against Personal Property
A writ of execution directs the sheriff or marshal to seize and sell the debtor’s non-exempt personal property to satisfy the judgment. This can include vehicles, equipment, business inventory, and other tangible assets.
Personal property exemptions vary widely by state. Most states protect basic household goods, tools of the trade, and a vehicle up to a certain value. But vehicles above the exempt threshold, business equipment, recreational vehicles, and second vehicles are frequently attachable.
Identifying attachable personal property requires an asset investigation to locate registered vehicles, equipment, and other holdings in the debtor’s name.
5. Charging Orders Against Business Interests
If the debtor owns an interest in an LLC, partnership, or other business entity, a charging order can direct that any distributions from that entity be paid to the creditor rather than to the debtor. This does not give the creditor ownership of the business — it redirects economic benefits.
Charging orders are particularly useful for business owners who pay themselves through distributions rather than a traditional salary (which would be subject to wage garnishment). In states with strong charging order protections for LLC members, this may be the primary remedy against a business-owning debtor.
6. Post-Judgment Discovery — Compel the Debtor to Reveal Assets
Most states allow judgment creditors to conduct post-judgment discovery — depositions, written interrogatories, and demands for document production — to compel the debtor to disclose their assets and financial situation under oath. A debtor who lies in post-judgment discovery is subject to contempt of court.
Post-judgment discovery is most effective when combined with independent asset investigation. The investigation tells you what the debtor owns; the deposition or interrogatory puts the debtor on record about those assets and creates liability for concealment.
7. Fraudulent Transfer Claims
Debtors who transfer assets to family members, spouses, or related entities to avoid collection may be subject to fraudulent transfer (voidable transfer) claims under state law. If a transfer was made with intent to hinder creditors, or if the debtor received less than fair value while insolvent, the transfer may be set aside.
Fraudulent transfer claims require evidence of the transfer and the debtor’s financial condition at the time. Asset investigation that documents the debtor’s historical asset position — what they owned before and after the judgment — provides the evidentiary foundation for these claims.
The Bottom Line
A judgment debtor claiming to have no money is not the end of the collection process. It is the beginning of an investigative one. The enforcement tools available to judgment creditors are extensive — the challenge is identifying which assets exist, where they are, and which remedy is most effective in the debtor’s jurisdiction.
Asset Investigation provides the intelligence that makes enforcement actionable: bank account locates, employment verification, asset research, and skip tracing for debtors who have moved or gone underground. If you have a judgment and need to know where to enforce it, we can help.