Buying & Collecting on Judgments

BUYING AND COLLECTING ON JUDGMENTS

Buying Judgments in Alabama

ALABAMA

There are no special restrictions in the state of Alabama with being assigned the judgments. The assignee of record may represent themselves or hire a debt collection attorney in the county where the judgments were granted. The attorney must be licensed in that county. Mobile, Alabama is not friendly to assignees that represent themselves.

Judgments in Alabama are good for 10 years and can be revived for another 10 years. Judgments earn 12% interest yearly since date of entry. This makes Alabama one of the highest in interest earned of all 50 states. The post-judgment proceedings  are Wage Garnishment, Non-Wage Garnishment, Levy on Personal Property and Examination  of Debtor as to his Property. 75% of wages are exempt from garnishment.

ALA CODE 6-9-196: ALABAMA CODE-SECTION 6-9-196: TRANSFER OF JUDGMENT; RIGHT OF ASSIGNEE THEREOF TO HAVE EXECUTION; ACTION OR REVIVER THEREON

a) When the transfer is made by any agent or attorney, the authority of the agent or the power of attorney shall be in writing duly acknowledge  and recorded in the office of the probate judge and referred to in such transfer by noting the book and page where recorded. After such transfer, the original plaintiff shall have no further authority or control over such judgment.

b) If an assignment of a judgment is made or endorsed on the execution docket or on the margin of the record of the judgment and is attested by the clerk, register or judge of probate, the assignee may have execution thereon in the name of the plaintiff for the use of the assignee, whether the plaintiff is living or dead.

c) In all cases where a transfer of a judgment of a court in this state is made or endorsed on the execution docket or on the margin of the record of the judgment in the court where entered or in the office of the probate judge where a certificate of the judgment is recorded and which transfer is attested by the clerk, register or judge of probate, the assignee of such judgment in addition to the rights conferred upon him by (b) of this section may maintain any action thereon or proceeding to revive in his own name that the plaintiff in said judgment could maintain if such transfer had not been made, whether the plaintiff is living or dead.

d) The assignee of a judgment, if the assignment  is in writing, may have the same revived in his name by appropriate action or motion under the Alabama Rules of Civil Procedures

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Buying Judgments In California to Collect

 

CALIFORNIA

There are no special restrictions in the state of California when being assigned judgments. The assignee of record can represent themselves in the post-judgment proceedings or hire a debt collection attorney.

In the state of California, the judgment creditors are owed $815,789,077 in unpaid judgments, second only to New York. This makes California one of the best states to be assigned judgments.

Judgments in California are good for 10 years and can be renewed but can only be renewed after 5 years. If consistently renewed, the judgment remains alive indefinitely.

 

CALIFORNIA CODE OF CIVIL PROCEDURE 673

(a) An assignee of right represented by a judgment may become an assignee of record by filing with the clerk of the court which entered the judgment acknowledgment of the assignment of judgment.

 

PURCHASING THE JUDGMENTS

There are two options when purchasing judgments: either the cash up-front or future-pay methods. 

The cash up-front method is when the assignee owns the judgments. 

The future- pay method means the assignor is still part-owner of the judgments.

1. Cash up-front purchase: The assignee will purchase the judgments with a onetime payment to the assignor. This procedure gives the assignee total control of the judgments. The assignee steps into the original judgment creditor's shoes and can enforce the judgment. Money talks but in the judgment assignment business it swears! The assignee is taking all the risks so that is why the offer to purchase is a small fraction of the face value of the judgments.

Cash up-front purchases range from 7% to 15% of the judgment amount, depending on how collectable the judgments are.

2. Future-pay method: Some states only allow the cash up-front method to purchase the judgments. The future-pay method is more complicated than the cash up-front method because the assignor gets a percentage of all the monies collected until judgment is satisfied. Unlike the cash up-front method where the assignee only pays a percentage  of the judgment amount and solely can collect on the judgment amount, court costs, accrued interest and accruing interest, the future-pay method allows the assignor to collect a percentage of all four. The assignee will still have to pay all the out of pocket expenses related to the enforcement of the judgments unless negotiated differently with the assignor.

The standard percentage of the total judgment, court costs, interest to be presented to the assignor ranges from 20% to 30%, depending on how collectable the judgments are.

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