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Judgment Recovery: The Purchase Method.

Using the assignment method of judgment recovery, the judgment was assigned to you. In this example you will actually purchase the judgment outright. In most collection cases, the older a debt is, the less value on the dollar it has.

This is because there is no interest accruing. Therefore your purchase price will be a deep discount of the original face value

Below is a table of what collection agencies typically pay, per dollar, for past due account receivables.

Age Value
30 days $0.97
6 months $0.67
3 years $0.14
6 years $0.05

Often times older judgments are the easiest and most profitable to pursue. Why? People are willing to accept pennies on the dollar for what they believe to be a "worthless" judgment.

Also, interest has greatly increased the value of the debt. Finally, in many cases, even if the debtor originally couldn't pay his or her debt, many have turned their lives around. Now... they have the means to pay.

For example, you find a six year old $4,200 judgment. After performing an asset search you locate the debtor. You determine that she owns a new Toyota Camry, free and clear, is employed, and has more than enough cash in the bank to pay this debt.

You contact the judgment holder, and offer to purchase the judgment for 5 cents on the dollar or $210. He has long since written the debt off and gladly sells you this seemingly "worthless " piece of paper.

Over the past six years, this debt has grown by $2,520, and in a few weeks you would get back $6,720. That's 32 times your investment!

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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