Alternatives to Hiring a Collection Agency for a North Dakota Small Claims Judgment

If you are thinking about handing your North Dakota small claims judgment to a collection agency, consider this first: collection agencies typically take 33-50% of whatever they recover, and many will not accept small claims judgments under $5,000 at all. For judgments in the $1,000-$15,000 range typical of North Dakota Small Claims Court, you have better options that keep more of the money you are owed.

Here are the five main alternatives, ranked by how much of your judgment you actually keep.

Alternative 1: Self-Help Enforcement With a Step-by-Step Guide

You keep: 100% of the recovered amount minus court and sheriff fees (typically $150-400 total)

North Dakota law gives judgment creditors direct access to the same enforcement tools attorneys and agencies use — garnishment, writs of execution, debtor examinations, and judgment liens. The difference is that you file the paperwork yourself.

What this requires:

• Serving the Notice of Entry of Judgment under Rule 58 and waiting through Rule 62's 30-day stay
• Conducting asset discovery (debtor examination, post-judgment interrogatories, public records)
• Serving the mandatory 10-day notice before wage garnishment
• Serving a Garnishee Summons on the employer (wages) or bank (accounts)
• Requesting a Writ of Execution for personal property seizure through the county sheriff
• Transcripting the judgment to other counties for real property liens

Free judgment-collection forms and templates are available from ndcourts.gov, but the Legal Self Help Center says its forms are not official court forms and courts are not required to accept them. The enforcement sequencing, mandatory notice requirements, county sheriff fees, and interest calculations are where most first-time creditors get stuck. A North Dakota-specific judgment collection guide like the Collecting a Small Claims Judgment in North Dakota guide fills that gap for $24 — a fraction of what an agency or attorney takes.

Best for: Judgments under $10,000 where the debtor has identifiable wages or bank accounts in North Dakota.

Alternative 2: Direct Negotiation With the Debtor

You keep: Whatever you negotiate (often 60-80% of the judgment as a lump sum)

Before spending money on enforcement, contact the debtor directly with a written settlement offer. Many debtors who ignored the court judgment will negotiate when they learn you know how to garnish wages or levy bank accounts.

A practical approach:

• Send a letter (regular mail and certified) stating the judgment amount plus accrued interest
• Offer a modest discount (10-20%) for payment within 30 days
• Note that you will proceed with formal enforcement — including wage garnishment, which their employer will be notified about — if they do not respond
• Document everything in writing

For judgments entered in 2026, North Dakota's post-judgment interest rate is 10% per annum under N.D.C.C. § 28-20-34; the rate set for the year the judgment is entered applies to that judgment throughout its duration. This gives you leverage: the debtor's obligation grows every month they delay. Some debtors who cannot pay in full will agree to a structured payment plan to avoid garnishment.

Best for: Debtors who have the ability to pay but have been avoiding it. Does not work when the debtor is genuinely broke.

Alternative 3: Collection Attorney on Contingency

You keep: 67-75% of the recovered amount (attorney takes 25-33%)

A collection attorney does the same enforcement work you could do yourself, plus they have access to skip-tracing databases, can file contempt motions, and handle complications like out-of-state debtors or fraudulent transfers.

The economics:

• Most collection attorneys work on contingency for judgment enforcement — they take a percentage of what they collect
• Standard contingency rates are 25-33% for small claims judgments
• Some charge hourly ($200-350/hour) instead, which can be cheaper for straightforward cases or more expensive for complex ones
• Court filing fees and sheriff fees are usually passed through to you regardless of fee structure

The State Bar Association of North Dakota offers a Lawyer Referral Service ($30 for a 30-minute consultation) where you can get an attorney's assessment of whether your case justifies their involvement.

Best for: Judgments over $5,000 with a debtor who has moved out of state, is hiding assets, or has filed for bankruptcy.

Alternative 4: Judgment Lien and Wait

You keep: 100% (there is no fee to docket a transcript between North Dakota District Courts)

If the debtor currently has no attachable assets but might acquire them in the future, file a Transcript of Judgment in every county where they might buy property. Under N.D.C.C. § 28-20-13, this creates an automatic lien on any real property they own or later acquire in that county.

Judgments initially docketed on or after August 1, 2021, last 20 years from docketing and accrue interest during that time. A title company may flag a recorded lien, which must be addressed as part of a sale or refinance.

This is a passive strategy — it costs very little and requires no ongoing effort. But it only works if the debtor eventually acquires real property in a county where you filed.

Best for: Judgment-proof debtors who might improve their financial situation over the next 10-20 years.

Alternative 5: Sell the Judgment to a Buyer

You keep: 5-15% of the judgment face value

Judgment buyers purchase the right to collect your judgment. They pay you a discounted amount upfront and then pursue the debtor themselves.

The economics are brutal for small claims judgments:

• Typical purchase price: 5-10 cents per dollar for individual debtor judgments
• A $5,000 judgment might sell for $250-500
• Buyers heavily discount judgments against individuals with no known assets

This is a last resort, not a first choice. You are accepting pennies on the dollar for the certainty of some immediate cash. For most creditors, filing a judgment lien and waiting costs less than the discount you would take.

Best for: Only when you have exhausted other options and need immediate (though minimal) recovery.

Comparison Table

Who This Is For

• You won a small claims judgment in North Dakota and are considering whether to use a collection agency
• You received a pitch from a collection agency and want to understand what they take before signing
• You are a landlord or small business owner looking for the most cost-effective way to enforce a judgment under $15,000
• You want to understand all your options before choosing an enforcement path

Who This Is NOT For

• Creditors with judgments against a business that has closed or dissolved — you may need an attorney to pierce the corporate veil
• Creditors in a state other than North Dakota — enforcement procedures differ significantly by state
• Debtors looking to settle a judgment against them — this page is for creditors

Why Collection Agencies Are Usually the Worst Option for Small Claims

Collection agencies are built for volume — they process thousands of accounts, send form letters, and make calls. They rarely file actual enforcement paperwork (garnishments, writs of execution) on individual small claims judgments because the economics do not support it at 33-50% of a $3,000 judgment.

What they typically do: send demand letters and make phone calls for 90-180 days. If the debtor does not respond to that pressure, the agency returns the judgment to you. You have lost six months, the agency has done nothing you could not have done with a certified letter, and the debtor's disposable income may have changed in the meantime.

North Dakota's enforcement tools — wage garnishment, bank levies, debtor examinations, judgment liens — are more effective than demand letters because they attach money directly. These tools are available to you without an intermediary.

The Collecting a Small Claims Judgment in North Dakota guide walks through every enforcement tool step by step. The free checklist lists the steps in order.

Frequently Asked Questions

Do collection agencies actually file garnishments on small claims judgments?

Most do not. Filing a garnishment requires preparing court documents, paying filing fees, and coordinating with the county sheriff — work that cuts into their margin on a small judgment. Many agencies rely exclusively on demand letters and phone calls, which have much lower success rates than formal enforcement tools.

Can a collection agency do anything I cannot do myself?

Agencies have access to skip-tracing databases that can locate a debtor who has moved. Beyond that, the enforcement tools are the same — garnishment, writs of execution, and liens filed through the court. You have access to all of these as the judgment creditor.

How much does a collection agency take from a North Dakota small claims judgment?

Typically 33-50% of whatever they collect. On a $5,000 judgment, that means you receive $2,500-3,350 at best. Some agencies charge an upfront fee in addition to the contingency percentage.

What if the collection agency does not collect anything?

Most agency agreements are contingency-based, so you owe nothing if they do not collect. However, you have lost the time — typically 90-180 days — during which you could have been pursuing enforcement yourself. The debtor's wages or bank account may have been garnishable during that window.

Can I switch from a collection agency to self-help enforcement?

Yes, but check your agency agreement first. Some agreements include an exclusivity period during which you cannot pursue the debtor independently. Once that period ends (or if you terminate the agreement), you can resume enforcement yourself using the same court tools.

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