Alternatives to Hiring an Attorney to Collect a Small Claims Judgment in South Dakota

If you won a small claims judgment in South Dakota and an attorney wants a third of the recovery or a $1,500 retainer to collect it, you have other options. Most small claims judgments — especially those under $5,000 — are not economically viable for attorney collection, which is why the legal profession invented the small claims process in the first place: so people could handle these disputes themselves.

Here are the realistic alternatives, ranked by cost and effort.

Option 1: Collect It Yourself with a Step-by-Step Guide

South Dakota gives judgment creditors access to every enforcement tool an attorney would use: wage garnishment, bank garnishment, writs of execution, debtor examinations, and real estate liens. The forms are available on the Unified Judicial System website. The county clerk files them. The sheriff serves them.

What a guide replaces is the attorney's knowledge of which tool to use when, which form to file, what it costs, and what the exemptions are. The Collecting a Small Claims Judgment in South Dakota guide covers each enforcement tool with the specific statute reference, form number, filing office, and fee — so you can execute the same process an attorney would, at the cost of a few hours of reading and a few trips to the courthouse.

Best for: Judgments of any size where you know (or can discover) the debtor's employer, bank, or property. Lowest cost, highest percentage of recovery kept.

Cost: $24 for the guide plus clerk and sheriff fees. In Minnehaha County, paper garnishment service is $60 and execution costs $105 upfront.

Option 2: Negotiate a Payment Plan Directly

Before spending money on enforcement, contact the debtor and propose a structured payment plan. Many debtors who appear uncooperative are simply overwhelmed — they lost in court, owe money they do not have, and do not know what happens next. A direct conversation (or written proposal) offering monthly installments can resolve the judgment faster than any enforcement action.

Get the agreement in writing and file it with the court. If the debtor defaults, you still have the full judgment to enforce — minus whatever payments they already made.

Best for: Debtors who have some income but cannot pay in a lump sum, and situations where preserving the relationship matters (neighbors, business contacts, former landlords and tenants).

Cost: Free, though you should use a simple written agreement.

Option 3: Use a Collection Agency

Collection agencies will take on small claims judgments, though most are selective. They typically charge 25–50% of whatever they collect — comparable to or worse than an attorney's contingency rate. Some specialize in judgment collection and have skip-tracing tools for finding debtors who have moved or are hiding assets.

The advantage over an attorney is that collection agencies work on pure contingency with no retainer — you pay nothing unless they collect. The disadvantage is that they often prioritize larger accounts and may let small judgments sit for months before making serious efforts.

Best for: Judgments where you do not know the debtor's current location or assets and do not want to invest time in debtor examinations yourself.

Cost: 25–50% of the amount collected. No upfront fee from reputable agencies.

Option 4: Assign (Sell) the Judgment

You can sell your judgment to a judgment buyer — a company or individual that purchases court judgments at a discount and then collects on them. The typical purchase price is 10–50 cents on the dollar, depending on the judgment amount, the debtor's apparent collectibility, and the age of the judgment.

This is the fastest way to get some money in your hands, but the math is brutal: on a $5,000 judgment, you might receive $500–$2,500. The buyer takes on all collection risk and effort.

Best for: Situations where you want to walk away completely, or where the debtor appears judgment-proof and you would rather have something now than gamble on future collection.

Cost: You receive 10–50% of the judgment face value. No ongoing fees.

Option 5: Wait and Let Interest Work

If none of the above options make sense right now — the debtor is judgment-proof today, you do not want to spend money on enforcement, and the judgment is not large enough to justify a collection agency — the simplest strategy is to wait.

South Dakota judgments can remain enforceable for up to 20 years if renewed after the initial 10-year period. Post-judgment interest accrues at 10% annually under SDCL § 54-3-5.1. On a $3,000 judgment, that adds $300 per year — after five years, the debtor owes $4,500.

In the meantime, docketing creates a real estate lien on property in the judgment county. To extend it to another South Dakota county, request a Transcript of Judgment from the original clerk and record it with the clerk in the target county. The lien lasts 10 years and secures payment if the property is sold or refinanced. Then set a calendar reminder to revisit the debtor's assets in 12–18 months. A court-ordered debtor examination under SDCL Chapter 15-20 requires a writ of execution to be returned unsatisfied in whole or in part.

Best for: Judgment-proof debtors where the judgment is worth preserving but not worth chasing right now.

Cost: To extend the lien to another county, transcript issuance and filing/docketing total $10 in clerk fees ($5 for each); any later execution adds county sheriff fees.

Comparison Table

The Practical Sequence

Most judgment creditors who skip the attorney follow this path:

1. Try direct contact first — a letter or phone call proposing a payment plan costs nothing and sometimes works immediately
2. If no response, issue a writ of execution — a debtor examination is available after the sheriff returns the writ unsatisfied in whole or in part
3. If they have attachable assets, enforce yourself — wage garnishment, bank levy, or writ of execution, guided by the step-by-step process
4. If they are judgment-proof, file liens and wait — the 20-year window and 10% interest mean time is on your side
5. If you are done investing effort, sell or assign — get a fraction now rather than nothing

Each step escalates cost and effort only when the previous step does not work.

Frequently Asked Questions

Can I use multiple strategies at the same time?

Yes. You can maintain a real estate lien, attempt wage garnishment, and contact a collection agency to pursue other assets — all simultaneously. The only restriction is that you cannot collect more than the total judgment plus interest.

Do collection agencies in South Dakota handle small claims judgments?

Some do, but most prefer judgments over $2,000–$3,000. For smaller amounts, the commission does not justify their effort. Check with agencies that specifically advertise "judgment collection" rather than general debt collection — the skill set is different.

Is it legal to contact the debtor directly about payment?

Yes. As the judgment creditor, you have every right to contact the debtor about payment. The Fair Debt Collection Practices Act (FDCPA) restricts third-party debt collectors, not original creditors. However, keep communications professional, in writing when possible, and avoid anything that could be construed as harassment or threats.

What if the debtor offers less than the full amount?

You can accept a partial payment to settle the judgment — this is negotiation, and you decide the terms. If you accept a reduced amount, make sure the settlement agreement specifies that it is in full satisfaction of the judgment, and file a satisfaction of judgment (Form UJS-019) once payment clears. Any settlement should be in writing.

Can I recover my enforcement costs from the debtor?

South Dakota allows judgment creditors to add authorized statutory enforcement costs, including court-approved sheriff and filing fees, to the running judgment balance. Private collection expenses and unauthorized collection agency fees cannot be added automatically.

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