Why you might want to sell court judgment
Many people think that being awarded a court judgment in a lawsuit means you get the money right away. However, it can take awhile to get your judgment money. Also, courts often allow those hit with a judgment to pay it off in installments over time, which means that it could be years before you get the full amount awarded to you. In such a case, you might want to look into how to sell court judgment.
How do you sell a court judgment?
There are companies that will buy court judgments from people. The thing you have to keep in mind is that if you sell court judgment, you will get less money. The companies buying the judgments will not pay you the entire amount, which is how they make money. You can expect to pay anywhere from 25 to 50 percent of the judgment amount to sell it.
Why would you want to sell?
Why would anyone want to give up one-fourth to one-half of their court judgment? In some cases, people may be in dire financial straits and can’t wait months or years to receive their full judgment payout. In such a case, it can be better to get $50,000 now than receive $25,000 year for the next four years. Selling a judgment can also help to initiate closure. Being able to take the money right away and be done with the case can be a lot better than having to drag it out over several years to receive payments.
If you are considering selling a judgment, there are some things you want to keep in mind. For one thing, you want to know exactly how much you are going to have to give up. You also want to make sure the company buying the judgment is taking on all the risk and you can’t later be liable for additional money if the company encounters problems with the defendant against whom you won the judgment.
Selling a court judgment can be the right choice, but you have to make sure you understand what you are giving up.
Courts of law hear disputes, in which two or more parties are involved. The two sides of court cases are plaintiffs and defendants, which can either be individuals or groups of people. Criminal cases, including assault and theft, don’t always end in monetary awards — usually just jail sentences. Civil cases, on the other hand, either result in parties having to change behaviors or properties of things or monetary judgments. A wide margin of monetary judgments aren’t paid by those ordered to, similar to unpaid debts. As such, collection agencies deal with judgment enforcement or collecting monetary amounts from individuals, groups, and organizations that lost court cases.
What happens to people who owe money from judgments?
Judgment creditors are those who owe money to judgment debtors that disputed matters in a valid court of law. Courts don’t collect the money themselves and don’t put people in jail for not paying debts. Nothing other than being contacted by others results from owing money. However, if agreements are made in court and creditors sign them, not paying amounts on time or in full may result in jail sentences.
What do judgment creditors need to do?
If judgment creditors straight-up take things from those who owe them money or other assets, they’d get in trouble for theft. Creditors must file a Writ of Execution document with appropriate courts. However, this requires creditors to know a lot about debtors, as they don’t often provide enough financial and personal information to creditors in the first place.
How do they find information?
Creditors must locate pertinent information and details prior to getting further in collection attempts. They can purchase background checks online, comb through court cases, or personally contact those to debtors and attempt to locate information. Their best bet is to conduct background checks.
Judgment enforcement creditors must have courts undergo examination hearings with both creditors and debtors. Creditors must “serve” notice of the court case to debtors at least ten days in advance of cases, as well as filling out legal forms to register court appointments.
Negotiate with the Debtor
What do you know about the debtor? If you are uncertain he can pay the judgment in full, you have options. You may be able to reach an agreement to pay the debt out over time or to settle for less than the full amount. This method requires the debtor to be willing to discuss the matter, but in many cases, the debtor becomes a ghost, never to be seen again.
You can petition for a levy of the debtor’s bank accounts. A levy is sent directly to the bank and can capture whatever is in the account at that moment or over a set period. Of course, that means you must know the bank name and bank account number. Consequently if the debtor shares that account with someone else, you may face extra headaches in procuring your fair share. Another consideration is you have no guarantee there is money in the account to recover.
Real Estate Lien
A real estate lien places a claim against the debtor’s property; however, you have to wait until the debtor decides to sell the property to collect. Additionally, you may not be the only person to hold a claim. You may only get paid after the debtor’s mortgage holder and any other individuals or business who are collecting on a judgment.
You can petition the authorities to garnish the debtor’s wages, provided you know where he works. And as long as he stays at his job, you have a good chance collecting what is due you. Futhermore, many debtors have been known to quit instead of live in reduced wages. Do you really want to keep tabs on the debtor for the months if not years to get to get paid?
Sell the Judgment
Finally, if you do not know the debtor well enough to successfully levy, lien, or garnish payment, you have options. Consider selling the judgment to professionals who are better equipped to investigate deadbeats and to successfully collect the monies owed. While you will not receive the full value of your judgment, you will find resolution and be able to move on with fewer headaches and more money in your pocket.
Many people feel a sigh of relief when a court grants a judgment against a debtor. However, the truth is that the hard work has just begun to collect on an old debt. Collection laws vary from state to state, but there are few ways of quickly collecting on a judgment. Wage with holdings typically only result in small payments over time, liens against property will not result in money unless the property is sold and most debtors do not have enough valuable personal property that can be seized to pay off a debt. Even worse, some debtors frequently move, creating a hassle for a creditor to keep track of where the debtor is living. In many cases, a creditor may have to chase the debtor across the country to collect on the judgment. These are just a few reasons why enforcing a judgment is so difficult.
Using a Debt Collector
For most creditors, the best course of action to collect a debt is through the use of a debt collector. A professional debt collector will be able to take fast action to collect on a debt. We do this by using legal means that are proven to work. One of the fastest ways to collect on a judgment is simply sell the debt to a debt collector. By selling a debt, a creditor can put some money in his or her pocket and stop worrying about the debt.
The collector who buys the debt will then become the owner and will be responsible for the collection. As most judgments will never be collected on, and many that are paid will be settled for less than the full amount, selling a debt makes a lot of sense for individuals and business that simply want to move on from a bad debt. Selling a debt can be especially beneficial for a business. By selling the debt the business can reduce their losses. Then they can get back to focusing on growing the business. No need to waste time working on enforcing a judgment.
A money judgment can seem like a blessing. Until, that is, it comes time to collect it. Often, the debtor will drag his or her feet. Sometimes they will even try to hide assets. For some people, receiving a judgment is a once in a lifetime experience. You should let our team of judgment collection specialists help you. With our expertise, you are far more likely to get your money.
Judgment collections is all we do here at Creative Judgment Solutions. This is a tricky field unless you’re an expert. Over 80% of judgments are never actually collected. And some judgment collection companies are essentially just side jobs for freelancers. That’s not the case for us. This is all that we do.
At CJS, we are the most experienced judgment collections agency in all of California. Combined, our staff has over 50 years of experience in the field. We have earned our reputation for helping people get their judgments by getting results, fast. When you assign your judgment to us, you can be confident of success. It’s important to understand that we also never demand money from our clients up front. We work on a contingency basis. If you don’t get your judgment, we don’t get our fee. This is not only fair to you our clients, it’s also great motivation for us.
In addition to judgment collection services, we also purchase judgments. Some of our clients simply can’t or won’t wait for their money. They don’t have the time or the patience for the collections process. That’s fine with us. We know we will collect that money eventually. We have no problem with paying part of that money up front when we know we’ll get the rest eventually.
Contact our team of judgment collection specialists today. We are proud to help people get the money they are entitled to. We’d be happy to work with you.
While collecting monetary damages from judgment debtors can be difficult, it is by no means impossible. The good news is, with a little patience and research, we can help. With our help it is surprisingly easy for us to show how to collect on a judgement
The civil court system in the U.S. has a history of helping people who have been wronged to gain justice. This is especially through monetary judgments. While the system makes it easy for aggrieved parties to sue others, it doesn’t make it so easy for the aggrieved parties to collect the money that has been awarded to them. This situation has led to the creation of a large class of people who are known as judgment creditors, people who have presented legal proof that they deserve monetary damages, but who have also found it difficult to collect on their debts from judgment debtors, or those who owe the money.
How to Collect on a Judgment
There are many effective ways to go about collecting a court-ordered judgment, including the following methods.
- Ask the Judgment Debtor Directly. While this method may seem simple at first glance a surprising number of judgment debtors will pay what they owe if they are asked politely. This is especially true if they are informed that their unpaid debts may affect their credit ratings. It may be wise to offer to create a payment plan that doesn’t create hardship for the debtor.
- Apply for a Writ of Execution. Obtaining writs of execution can give the judgment creditor the right to ask law enforcement help. You can have them seize and sell the debtor’s property in order to pay off outstanding judgments.
- Garnish Wages. Another effective method for collecting judgments is to ask the relevant court to appropriate a portion of the judgment debtor’s income. Garnished wages can help in order to pay off the outstanding debt.
There are certainly other ways for judgment creditors to collect outstanding debts. Those creditors who apply the tactics mentioned above stand a very good chance of eventually recovering the money that they are owed. Let us know if you want help on how to collect on a judgement.
Now that you have obtained a judgment worth a significant dollar value. The next step is to take the necessary measures for collecting judgment money owed to you. There are a number of exciting avenues through which you can make efforts to accomplish this goal. Then you can cash in on your judgment.
Read up on the FDCPA Laws
When it comes to collections, you are required by law to operate in accordance with the Fair Debt Collections Protection Act (FDCPA). Becoming familiar with what you can and cannot do by law when collecting judgment money is not just smart to know, it is the law. Fortunately, the FDCPA is a fairly straight forward document to read. It is intended to help collectors and debt owners know their rights and responsibilities under the law.
Petitioning By Mail
When it comes to collecting money owed to you through an acquired judgment, sometimes it is best to jump right into the process. You can do this by sending the person who owes you money a letter. First contact is a very important step. You just want the person who owes you money to know that you are very approachable and are ready to receive payment. In the letter you will want to introduce yourself or your company, establish that according to your records they owe you money. Let them know you have acquired from the name of the original party, state the amount owed and invite them to contact you if they have any questions or issues that need to be addressed. This includes providing the recipient of the letter with your contact information at the end. When you send this letter, be certain to send it by certified mail with return receipt. This allows the recipient to know you mean business without being negative towards the recipient. Remember, in this business you have to be firm, but you want to also keep it professional!
Make an Offer They Cannot Resist
Another letter you can send to entice a person to pay up quickly on a judgment is to offer the recipient a discount. Sometimes, simply making the goal of paying off a debt more attainable for the recipient, is just the ticket to getting paid. While you are still retaining enough profit for your efforts. Never underestimate the power of an enticing debt discount to a person. The person in debt typcially want to avoid being bothered with further collection efforts. This might just be the easiest way to get people to pay up and pay up fast. Remember, when sending out mail offers to a person who owes you on a judgment, always make it easier for them to pay you by including a self addressed, stamped envelope for them to use. The trick to collecting on a judgment is to remove as many barriers as possible to encourage rapid payment.
Winning a court case does not exactly lead to winning results. Receiving a judgment in your favor is only one half of the problem – the other half is collecting. Like most people, you could spend years struggling to obtain money that you won legally. For one less burden, transfer your judgement collection to a company that eases the unnecessary hassles of collecting.
Reasons for the Hassles
There are a few common reasons why collecting is difficult or impossible. The most common reason is that debtors refuse to acknowledge the judgement. They deliberately avoid wage garnishments by filing for a suspension, hiding money or changing personal information. Many debtors want to pay the judgement, but cannot due to lack of money or employment. When no wages are made, the process of wage garnishment is impossible to carry out.
Solutions to Collecting Problems
Selling your judgement is the fastest, easier solution to receive your money. The statistics show that most judgements are never collected, so selling is the only solution available to most people.
Forgetting about the judgement is never an option. Even if the debtor dies or changes his or her identity, it’s still possible to collect the money. There are options to settle any judgement regardless of the amount of money involved or the age of the case.
There are companies willing to buy the judgement off your hands. You no longer have to deal with the hostile, stubborn acts of debtors who refuse to pay. Even experienced collection agencies spend years trying to track down difficult debtors.
When you sell, you never have to reenter the courtroom and file a new case or get into contact with an old lawyer. For people who have walked in and out of courts for years, selling the judgment is instant relief to a long-term problem.
Like most people, you feel elated when you win a court case, but that good feeling wears off quickly. Soon enough, you realize that the ordeal is far from over. After spending years waiting in court, there is no reason to continue waiting for results. Submit a free online quote on your judgement collection, which includes the necessary court documents, and receive the cash immediately.
You’ve gone to court and gotten a judgment against someone that owes you money. That’s great, but it’s only the beginning. The next step is collecting the judgment. Here are our four tips for how to collect on a judgment:
Hey, it can’t hurt to try. Some debtors pay their debt when they receive a professional letter asking them to pay. Make it clear to them where to pay and how much they owe.
Find Assets that are Accessible
If your debtor is employed, you can file a wage garnishment. You file certain paperwork with the person’s employer, and the employer has to pay you directly from the person’s wages. There are specific rules for when this is allowed and how much you can garnish, so it’s important to read your state’s laws carefully for how to collect on a judgment.
Bank accounts are another great place to look. You can ask the court to allow you to take money directly from a person’s bank account. Like wage garnishments, there are specific rules for each state, and it’s important to follow them.
A Debtor Exam
If you’re not sure where your debtor might have hidden assets, some states allow you to conduct a debtor’s exam. In that case, a person has to testify under oath about all of their assets. This is also a good time to talk to the person face to face about creating a plan to satisfy the debt.
Sell your Judgment
Sometimes, it’s not practical to wait to collect on the judgment. You might need money right away. You might not know all of the ins and outs of state laws and garnishment procedures. If that’s you, you might consider selling your judgment.
There are companies that are in the business of buying civil judgments. You sell the judgment for a price that works for you both. You’re done worrying about the judgment. These companies have professionally-trained experts that work on collecting the judgment. You just enjoy your cash as soon as you make the sale.
A court judgment is a good start, but it’s just a piece of paper. The sad reality is that most judgments aren’t actually collected. If you’re working on an enforcement of judgement, here’s what you need to know:
Some property is exempt
You can go after a person’s assets to try to satisfy your judgment. If they have classic cars, a coin collection, famous art or really anything of value, you can try to seize it to satisfy your judgment. However, keep in mind that certain property is exempt.
The exact rules vary by state, so it’s important to read up on the local laws. In some states you can take vehicles, and in other states you can’t. There might be exemptions for household furnishings. Once you’re clear on what you can seize, personal property can be a helpful way for enforcement of judgement.
You can look at real property, too
If you have a judgment, you can place a lien on a person’s real property. That means that if the person sells the property, you get paid before they get anything from the sale. Again, each state operates a bit differently. In some states, a lien automatically attaches when you have a judgment. In other states, you have to register the lien with the right government office.
Consider an assignment order
Most people get a tax refund. If a person owes you money, you might be able to get their refund before they do. This can apply to other types of irregular funds that people receive such as commissions or dividends. If the person you have a judgment against doesn’t perform regular work for pay, this can be a great way for enforcement of judgement.
Work with a collection company
If you don’t have the time, knowledge or energy to do all of the tedious collection work, you might want to work with a judgment company. There are companies that buy your judgment from you. You can leave the tedious collection work to them and have immediate cash in your pocket.