Judgment Collection

The post-judgment process of enforcing a monetary award against the losing party by identifying, restraining, and executing against assets sufficient to satisfy the judgment, including accrued interest and collection costs. Obtaining a favorable judgment is only the first step in commercial litigation — collection against an uncooperative or asset-concealing defendant can be as complex and expensive as the underlying litigation itself. Litigation funders increasingly provide dedicated post-judgment financing to cover the costs of collection proceedings, including asset tracing investigations, domestication in foreign jurisdictions, and contested enforcement actions. The collectability of a judgment — assessed at the outset of funding — is one of the most important factors in a funder's overall risk analysis.

Funders increasingly price post-judgment collection risk as a distinct phase of the investment, separate from the merits litigation, because an uncooperative defendant can make enforcement as expensive and protracted as the underlying case. Some funders now offer dedicated post-judgment financing specifically to cover collection costs, recognizing that a favorable verdict is not the end of the risk period if the defendant has both the incentive and the means to resist payment.