Using the assignment method of judgment
recovery, the judgment was assigned to
you. In this example you will actually
purchase the judgment outright.
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
Below is a table of what collection
agencies typically pay, per dollar, for
past due account receivables.
Often times older judgments are the
easiest and most profitable to
Why? People are willing to
accept pennies on the dollar for what
they believe to be a "worthless"
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.
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.
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!