Three years ago Robert "won" a judgment
against David for $4,800. He has been unable
to collect any of the judgment. David moved,
however through skip-tracing you quickly
You discover where he lives,
works, and banks. You determine that he has
just moved into a condo that has very little
equity, but holds a job netting $440 per
week. Plus he has $2,650 in his bank
You contact Robert and strike a deal. The
deal will give him 50% of everything you
collect from David, up to 50% of the
original judgment. Robert decides that if
you could help him get $2,400, that would be
$2,400 more than he has now. He eagerly
signs the contract.
But it gets better . . . much better. At the
time the judgment is awarded, the court also
declares that the debtor must pay the legal
simple interest rate (10% annually in most
states) from the award date.
($4,800) plus interest for three years
($1440) has now become a debt of $6,240.
David is legally obligated to pay every
Next, you simply fill out the appropriate
court forms and the sheriff seizes David's
bank account for you. This is quick income.
You split this income with your "partner"
Robert. ($2,650 down $3,590 to go)
Since David's bank account didn't satisfy
his entire debt, you next file the
appropriate court forms to execute a
continuing garnishment of his wages.
Most states will take only a percentage
(often 25%) leaving David with enough money
to live. This is fine anyway, because if you
took more, David would likely walk away from
This 25% garnishment now generates a
recurring weekly cash flow (for
roughly the next 32 weeks) of $110. You'll
then split the cash flow with Robert. Now
$55 per week might not sound like a lot, but
wait till you get 20 or 30 of those checks
coming in every week!
are your bread and butter judgments.
Go away on vacation for three weeks and the
checks keep coming in, while you are
away. Let's say David is fired or quits his
job. You simply file the appropriate papers
to attach a lien to his condo.
Even though it doesn't have much equity in
it now, someday it will. When David sells or
refinances the property anyone who has a
lien on it will be paid before
David gets his share.
This equity is terrific for security in
procuring personal and business loans to
expand your company. This will also be your
long term retirement income. Because
your agreement with Robert allows you to
keep the post judgment interest, here's
the actual break down of cash and
Break Down Of Cash Proceeds and
Picture this for a moment. Robert is
ecstatic. You just recovered $2,400
for him that he would have never seen.
You're absolutely elated because
you've just been paid $3,840 for your
intelligence and expertise.
A true win/win situation . . . and just when
you thought it couldn't get any better, on
top of all that you get to add 100% of the
costs that you incurred to collect this
judgment. Every penny. Admit it, this is
starting to peak your interest, isn't
it? Well wait till you see the