US debt recovery is largely a matter of state law, with a federal layer regulating how collectors behave.
The FDCPA
Third-party debt collectors must comply with the federal Fair Debt Collection Practices Act (FDCPA), which restricts how and when consumers can be contacted — getting this wrong creates liability for the creditor’s side.
Suing and judgment
If demand fails, the creditor sues in the appropriate state court; if the debtor does not respond, a default judgment follows.
Enforcement varies by state
With a judgment, enforcement options include wage garnishment, bank levy and judgment liens on property — but the rules vary sharply by state, and some states strongly protect debtors’ wages and homes.
Foreign and out-of-state judgments
There is no treaty for recognising foreign judgments; they are recognised state-by-state, often under a Uniform Recognition Act. Judgments from another US state travel under Full Faith and Credit.
For foreign creditors
A verified US colleague in the right state can sue, obtain judgment, and enforce — or domesticate your foreign judgment.
State rules differ widely — confirm with admitted US counsel in that state.