Selling Your Judgement to a Collection Agency
Sell Judgement to Collection Agency to Cut Your Losses
For businesses of all sizes, there may be a time that you must take someone to court for the money they owe you. This often leads to a judgement settlement. However, it does not mean you will receive your money. A judgement is simply a legal document showing that the person owes you money. Many businesses often choose the option to sell judgement to collection agency so that they can cut their losses and move on.
When you sell judgement to collection agency, the collection agency will actually pay you for a certain percentage of the value of that judgement. This means that when the collection agency pays you for the judgement, you no longer have to worry about trying to collect any money. If the collection agency is able to collect money, they keep it. If they do not collect the money, the collection agency is out the money they paid to you.
Many businesses find that by choosing to sell judgement to collection agency, they are at least able to cut their losses. Businesses receive a portion of the money that is owed to them. No company wants to lose money, but you have to consider the possibility that you will never collect on that debt. Collection agencies are experienced in such matters, so they stand a better chance of actually collecting on the judgements that they purchase.
Deciding to Sell your Judgement
The decision on whether to sell judgements to a collection agency may be a difficult one for your business. Therefore, some things to consider on whether you wish to sell these judgements include:
- how long the judgements have been in place
- whether you have been able to contact the person who owes you money
- and how much money is actually owed to your business.
Businesses often do not have a choice regarding their judgements. They need money now and. Even if you sell your judgements to a collection agency, you are still collecting a portion of what is owed to you. Only you can determine whether or not it is in your best interest to sell the judgements to an agency.
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