What happens if I am unable to pay a small claims court judgment?

If you are unable to pay a small claims court judgment in Wisconsin, the court may take several actions. These depend on the situation and the type of case. The court may order you to make payments in installments over time, or they may allow you to make a one-time payment. The court may also allow you to turn over property that belongs to you in lieu of money. Sometimes, the court may agree to suspend the judgment if you can demonstrate a financial hardship. This means that the court will not require you to make immediate payment, but the debt still exists. If you are granted a suspension, you should make every effort to pay the debt as soon as possible. The court could also refer you to a debt collection agency that will take steps to collect the debt. The collection agency may contact you by phone, mail, or in person and may take steps to seize bank accounts or garnish wages. If you still cannot pay the court judgment, the court could file a lien against your property or refer the case to the Department of Revenue, which can begin collection proceedings. Finally, the court might hold you in contempt of court and impose further penalties. Therefore, it is very important to make all payments when they are due in order to avoid larger financial and legal issues.

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