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To be wronged to the point of having to resort to filing suit, waiting throughout long, drawn-out judicial proceedings, and sometimes advancing court costs, etc. is a nerve-wracking and forgettable experience for most.

But to have the Judgment you worked so hard to have awarded  gavel go unpaid by the judgment debtor adds insult to injury! Unfortunately, nearly 80% of all judgments are never satisfied.

Your judgment may have been awarded by the court but the follow through is completely your responsibility! Bet you didn’t know that!

gavel

But…..a judgment is a piece of paper with a dollar value attached to it, right?

So, you’re in luck – It is a negotiable paper instrument in the cash flow industry.

So, there are funders in this industry who have the resources, expertise, and determination to assist judgment holders in the process of collecting what is rightfully due them.

Oftentimes, judgment debtors will try and hide assets but these funders have the expertise to uncover any assets or sources of income, and take whatever steps are necessary to legally seize them and satisfy the judgment.

Even better, there are no upfront fees to the judgment holder and the funders do not receive payment unless they are able to recover for you!

These funders do not do an outright purchase of the judgment due to the fact that it can oftentimes be a lengthy process to pursue and collect the money owed — if at all. It is too risky an investment for even the most daring of investors.

They will take it on a “contingency” basis, though, and put their valuable time and sweat equity into recovering the money as well as advance any costs involved. So, the judgment holder can rest assured they will give it their “best shot”. Some might liken them to a modern-day “bounty” hunter!

First and foremost important fact for the weary judgment holder to remember —

Once you make the decision to allow these funders to handle the enforcement of your judgment, you basically do not have to do anything but:

  • 1. Give the funding company the right to collect the judgment,
  • 2. Inform the funding company of the basic facts of the case and any information on the judgment debtor available, then
  • 3. Sit back and let the funding company investigate, seek out, seize and collect the judgment, plus interest and allowable costs. The funding company will advance any costs and expenses incurred in collecting on the judgment.

But….it is Extremely Important to not delay. The longer a judgment holder delays in getting the process moving, the more time the judgment debtor has to dispose of or hide assets which they do oftentimes try to do.

So, —– there is nothing for the judgment holder to lose (and lots to easily gain) by trying this option!

Some FAQs:

Can judgment holder collect interest on my unpaid judgment?

Usually, yes. Most judgments include a provision for collecting interest, usually from the day it was rendered. The actual interest rate and calculation procedure (compound or simple interest) varies from state to state.

Why not use an attorney to collect the judgment?

You can use an attorney if you are willing to pay a retainer and pay a fee of between $125 and $175 per hour, plus costs upfront, whether anything is collected or not. With our option, the judgment funder pays you a percentage of everything recovered and puts up any up-front costs. Also, this is their one and only area of work; collecting judgments is 100% of their business.

How about using a collection service?

A collection service may contact the debtor and harass him, they may even place a black mark on his credit report, but they rarely collect! With the passage of the FDCPA (Fair Debt Collection Practices Act), the debtor has the right to simply tell the third-party debt collector to stop ALL contact. A judgment funder will investigate the debtor, find his assets, and then seize them to collect the judgment.

Is there any guarantee of collecting the judgment?

No. Sometimes there are simply no assets to seize. However, the judgment funder will employ all legal means of uncovering existing assets including access to databases that enable them to garnish wages and bank accounts, and seize the assets of debtors if necessary….. because they DO NOT GET PAID if they are unable to collect the judgment!

Must the judgment holder pay for the expenses incurred in collecting on the judgment?

No.  The judgment company advances the cost of all expenses incurred in the judgment collection. In most cases, the expenses incurred in collecting on the judgment are either added to the total judgment (upon petition to, and approval by, the court), or the costs incurred are deducted from the amount recovered from the debtor before payment to you.

How long before results are seen?

It all depends on the difficulty in locating your debtor, and the difficulty in uncovering his assets. Some debtors are very smart about concealing their assets. Although the judgment company normally tries to get results in the first few weeks, recovering funds could take a few months or longer - sometimes a year or two.

What about a judgment awarded in one state against a debtor who resides in another state?

In most cases this is possible. Especially if your debtor answered your complaint or made an appearance at the trial or hearing. However, if your defendant didn’t answer or appear, the judgment is called a ‘Default Judgment’. This is considered a weak judgment. Each of us has the right to confront our accusers and to defend ourselves against any legal claims. Therefore, if the debtor is able to show the court that he was not properly served, or served in the wrong capacity, he can file a motion with the court asking it to set aside the judgment. This is the most common ‘hurdle’ that must be cleared in any judgment collection efforts, especially when done across state lines.

Is there a statute of limitations on executing on a judgment?

Yes. Your state law sets a limit on how long a judgment is valid, usually a period of 10 years from the date the judgment was rendered. Some states provide ways to renew the judgment for additional periods of time, usually another 10 years. However, in most cases, the sooner you collect on the judgment, the better.

How does all this work?

First,  an agreement is drawn up detailing the specifics of the judgment company’s purchase of the judgment. If acceptable, you then assign the judgment to the judgment company making them the judgment owner of record. Once this ‘assignment’ has been filed with the court, the judgment funder has the legal right to investigate the debtor and to proceed with the legal process of collecting on the judgment. On receipt of the signed documents, they will immediately initiate collection of the judgment.

And remember, it is to the judgment company’s advantage to move as expeditiously as possible, too, which will help you to be confident that all is being done as quickly as it can be done!

 

 

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