Judgment

• To obtain the right to garnish your wages, your creditor has to go through the court system. If your wages already are being garnished, it means that your creditor has successfully brought a lawsuit against you. The judgment gives your creditor the right to use various legal methods to collect the money you owe. While the court does not collect the money on behalf of your creditor, she can obtain court orders to force you to pay.
  
  

Wage Garnishment

• Wage garnishment is only one of the several ways that your creditor can use to collect your debt. Your creditor can collect up to 25 percent of your pay, depending on your income level. To do so, your creditor has to know who your employer is and serve your creditor with a court-issued earnings withholding order. Your employer then has the legal obligation to give the creditor part of your pay.
  
  

Property Lien

• With a judgment, your creditor can place a lien on your home, but only after obtaining appraisals and other documents. According to lawyer Robert A. Weinberg, placing a lien on your home can cost the creditor more than $5,000. After placing a lien, the creditor usually has to wait until you sell the property to collect your money. Even then, the money first goes to any superior lien holders, such as mortgage lenders.
  
  

Other Methods

• Besides garnishing your wages and placing a lien on your home, your creditor also has other ways he can use to collect the debt. Your creditor can garnish your bank accounts. He can also take cash from your businesses and seize your personal property, such as vehicles and jewelry. Unless you pay off the entire debt or declare bankruptcy, your creditor may be able to continue collecting the debt for more than 20 years from the date of the judgment.