What happens if a judgment is not paid in small claims court?

If a judgment is not paid in small claims court in Indiana, then the court may take action to enforce the judgment. This can include placing a lien on the non-paying party’s property or garnishing their wages. If the judgment remains unpaid after six years, the plaintiff can file an “Affidavit of Renewal of Judgment” with the court to extend the deadline for payment. Once the Affidavit is filed and approved, it becomes an “open judgment”, which can then be collected as long as the party lives in Indiana. The court may also refer the non-paying party to the Unclaimed Funds Department, in case the individual has funds held in the state. The Unclaimed Funds Department will attempt to locate the individual’s funds and use them to satisfy the judgment. If the individual does not have any funds held in the state, the court may refer the case to a Collection Agency. The agency can then take legal action to collect the funds. Finally, the court may also suspend the non-paying party’s driver license or professional license. The court can direct the Bureau of Motor Vehicles to suspend the license for failure to pay a small claims court judgment until the obligation is met. Similarly, the court can refer the case to the appropriate Board of Professional Licensing agency to suspend the professional license of the non-paying party.

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What happens if a judgment is not paid in small claims court?

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