Statute of Limitations

• Wisconsin, like other states around the country, considers money owed from a case in small claims court as a domestic judgment -- as long as a Wisconsin court heard the original case. The statute of limitations on debt collection for a domestic judgment in Wisconsin is 20 years, according to credit and debt solutions website BCS Alliance. A creditor winning a domestic judgment in small claims court has this amount of time to pursue the debtor to recoup the entire amount owed from the judgment.
  
  

Foreign Judgments

• A foreign judgment is a court ruling made by a court outside the state's jurisdiction, either in another state in the United States or in a separate country altogether. According to BCS Alliance, Wisconsin also allows a 20-year statute of limitations on debt collection for foreign judgments. This allows a creditor pursuing a debtor for a judgment in small claims court from another state or country the same time to recoup the debt as a creditor with a domestic judgment. This also reduces the likelihood that a debtor from another state would move to Wisconsin as a means of obtaining a shorter statute and a way out of paying a debt.
  
  

Garnishments and Interest

• Wage garnishment is legal for most debts in Wisconsin. The law allows a creditor with a judgment against a debtor to garnish up to 20 percent of a debtor's net weekly earnings. A Wisconsin small claims court may issue a ruling on wage garnishment at the time of the hearing as a means of compelling the debtor to repay the debt. The court may assign a maximum 12 percent interest rate to the judgment, according to BCS Alliance's website.
  
  

Expiration of the Statute

• Once the statute of limitations expires, a debtor loses all rights to pursue the debtor in court for money owed. A creditor filing an additional case in small claims court will have the suit dismissed on the time-barred nature of the debt and may have future rights to litigation regarding the debt revoked by the court. If the debtor communicates with the creditor in any way, the clock on the statute of limitations begins again allowing the creditor a fresh 20 years to continue collection procedures.