Delaware Small Business and Contractor Judgment Collection

You finished the job, sent the invoice, filed in the Justice of the Peace Court, and won. The judge awarded you the money. Now the client is ignoring the judgment, and you need that cash to cover materials, labor, or next month's overhead.

Small business owners and independent contractors make up one of the largest creditor segments in Delaware's JP Court. The claims are usually straightforward — unpaid invoices, breach of service contracts, unreturned deposits — but the collection process has its own set of rules that have nothing to do with how clearly you won the case.

The Enforcement Timeline

Before starting collection, check whether the judgment is final and whether a stay has been entered. Here is the sequence:

Day 0: Judgment entered on the court docket. The court issues Post-Judgment Procedures Information Sheet (Form 14A) to both parties.

Days 1–15: The 15-day appeal window under 10 Del. C. § 9571. The debtor can file an appeal with the Court of Common Pleas for a de novo trial. A timely Rule 59 motion for new trial (filed within 10 calendar days starting the day after judgment entry) tolls the appeal clock. An appeal or pending motion does not automatically stay execution.

Day 16+: If no appeal is filed and no post-trial motion is pending, the judgment is final and you can begin enforcement.

Within 5 years: The judgment remains enforceable. After five years, it goes dormant and requires a scire facias revival (Form 15A) before any writ can issue.

For a business waiting on that money, two weeks feels long. Check the docket for an appeal, post-trial motion, approved supersedeas bond, or court stay before filing; an appeal by itself does not automatically stop enforcement.

Picking the Right Tool for Business Debts

Wage garnishment works when the debtor is a W-2 employee somewhere. File Civil Form No. 17 with the debtor's employer information and $20. The employer withholds up to 15% of disposable earnings each pay period until the judgment is paid. Delaware's single-garnishment rule means only one creditor can garnish at a time — if you are first, you have priority.

Property garnishment (also Form 17) targets non-wage debts owed to the debtor by third parties. If your debtor is a contractor who is owed money by their own clients, you can garnish those receivables. This is particularly useful in business-to-business disputes where the debtor has accounts receivable but no traditional payroll.

Personal property levy (Form 16, $20) sends a constable to seize non-exempt tangible property — vehicles, equipment, inventory. A vehicle levy requires a Delaware DMV Certificate of Lien attached to Form 16. Before filing, consider whether the debtor actually owns seizable assets. A debtor who leases their vehicle and rents their workspace may have nothing above Delaware's exemptions. A debtor examination first saves you from burning a $20 fee on a dry run.

Real estate lien is the long game. Transfer the judgment transcript to the Superior Court Prothonotary ($10 abstract + $50 transfer fee) and a lien attaches to real property the debtor owns in that county under 10 Del. C. § 9569. The lien lasts 10 years under 10 Del. C. § 4711. The debtor cannot sell or refinance without clearing the lien. For a contractor collecting from a property owner, this is often the most effective tool — the property is right there.

Representation Rules for Business Entities

If you are collecting as a sole proprietor, you appear pro se like any individual. If your business is an LLC, corporation, or partnership, you need either a licensed Delaware attorney or a Certificate of Representation (Civil Form No. 50) designating a non-attorney officer or manager to handle JP Court proceedings. Form 50 authorization only works in the JP Court — if the case is appealed to the Court of Common Pleas, the entity must retain licensed counsel.

Tracking Multiple Judgments

Businesses that regularly sue for unpaid invoices often carry several active judgments simultaneously. Each one has its own five-year enforcement window, its own post-judgment interest rate for the judgment under 6 Del. C. § 2301(a) (5% above the Federal Reserve discount rate in effect when judgment is entered or the contract rate, whichever is less), and its own set of enforcement costs to track. Missing a satisfaction filing deadline on any single judgment exposes you to the 50% statutory penalty under 10 Del. C. § 9567.

A systematic tracking system — recording each judgment's entry date, enforcement actions taken, fees paid, payments received, and remaining balance — is not optional when you are managing multiple collections.

The Delaware Judgment Collection Guide includes enforcement tracking tools, a balance ledger with interest calculations, and the complete form-by-form workflow from first writ to final satisfaction filing.

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