When folks first start looking at their judgments, they like reading the part which says that someone owes them both interest and money; and that statement sure make judgments look very valuable. Although there can be certain exceptions, usually winning the judgment is the easiest part.
Recovering money on your judgment is often a costly, time intensive, and/or a very discouraging experience. Many folks start the judgment recovery venture by attempting to collect their own judgments; and often then find out how complex and expensive such attempts are. Then, many look for an outside answer, and most often begin by persistently trying to sell their judgment for cash up-front.
This article is my opinion and is not, legal advice. I’m a judgment broker, and not a lawyer. When you want a strategy to use or legal advice, please contact a lawyer. Due to the economy, debtor-friendly statutes, and court funding problems; the cash upfront worth of the majority of judgments are usually just a very small fraction of their face value.
At first, many people don’t accept that a judgment is not worth much cash up-front. Many work hard to shop their judgments, or list their judgments with a judgment marketplace for a long time; getting only really tiny purchase offers, or no real offer or response. Some folks finally realize that a contingency future pay collection attempt is the right choice to try to collect any money for a judgment.
Future-pay contingency judgment collection, is where you have someone else attempt to collect your judgment; and then pay you, after anything is collected. Usually, you must assign the judgment to somebody; although if you pick a collection company, often you do not have to assign a judgment. Usually, you don’t have to pay any money up-front, and be paid at least half of what is collected. Recovering something on a judgment is a win.
Selling a judgment for cash upfront is a great outsourcing solution if, and only when, you accept that the purchase offer is always based solely on your debtor’s situation. If you can’t agree with a realistic cash up-front price, you can attempt to enforce the judgment yourself, pay a lawyer per hour, or outsource the enforcement attempt.
On any future-payment judgment recovery attempt, one outsources all the time, money, and hassles of enforcing a debt or judgment. After you have a future-payment recovery expert recovering your judgment; you no longer spend your money or time on it. You can then work on some other more interesting tasks.
As future pay judgment and debt collection professionals only can earn profit when you are paid, they will have every incentive to try to enforce your judgment or debt. There is not much chance of any shenanigans. One reason is that judgment enforcement actions get documented at the court. One other reason is that judgment or debt collection experts would very rarely risk their businesses and reputations, or open themselves to getting sued; by not doing the right thing.
The most important part of cash upfront judgment prices, or for future payment recovery results; is the debtor’s circumstance. The next most vital thing is finding either the right judgment buyer or future-pay contingency judgment recovery professional. Many of those judgment buying companies that advertise the most, are much less responsive than judgment buyers referred from a judgment referral professional.