Congratulations! You won your judgment, and you are ready for payday. As time goes on, however, you realize that winning was the easy part. Getting the money, on the other hand, is not so easy. You start to wonder if you will ever get paid. You then ask yourself, “Can I sell my judgment for cash?”
Selling Your Judgement
You may not have the time or resources to pursue the money from your judgment, but some companies do. These companies often offer fast cash for a heavily discounted value of the judgment. Others will pay you on a contingency basis only after they collect the debt.
Can I Legally Sell My Judgment?
It is perfectly legal to sell your judgment! As with other forms of personal property, you can also sell any judgment, including civil, divorce, probate, and bankruptcy judgments. When you sell your judgment, the buyer becomes the new creditor, and anything done to enforce the judgment is separate from you. Most purchase agreements include this indemnification clause.
How Do I Sell My Judgment?
The process is usually simple. First, the buyer completes an assessment to determine how much they can reasonably expect to recover. Then, they offer you a portion of that amount. The purchase amount depends on the type of debt, the age, the amount, and the debtor’s financial status. You may expect to be paid a lot for your judgment, but most judgments sell for 1-6 cents on the dollar. Many creditors, however, see this as guaranteed cash for a debt once considered a lost cause.
Once you accept the offer, the buyer sends an agreement. If you sold your judgment for cash on the spot, the buyer includes a check with the purchase agreement. Congratulations! You have now sold your judgment!
Tips for Selling Your Judgement
Compare offers and then select the best buyer. You can leverage offers from different companies against each other. Furthermore, look to deal with reputable companies that fairly buy judgments.