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Judgment Recovery: The Assignment Method.


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 locate David.

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 account.

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.

The judgment ($4,800) plus interest for three years ($1440) has now become a debt of $6,240. David is legally obligated to pay every cent.

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 his job.

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!

These 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 percentages.

Break Down Of Cash Proceeds and Percentages

Judgment Principal Interest Total $ Total %
You $2,400.00 $1,440.00 $3,840.00 61.54
Robert $2,400.00 $0.00 $2,400.00 38.46
      $6,240.00 100.00

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 next example.

All the best,

Mike O'Connor

(Try some more free online judgment recovery training... Take our free judgment recovery training course, or, when you're ready for serious judgment recovery instruction, try How To Make Real Money In The Judgment recovery Business.)

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