Judgment Recovery Experts - Is Offer To Buy Judgments Legitimate
Online, April 16, 2013 (Newswire.com) - A successful plaintiff is ecstatic after winning a $22,000 judgment against a former client refusing to pay. Unfortunately, the judgment was won over two years ago and still the payment has not been done!
A small research through Google indicates there are thousands of companies anxious to pay cash for judgment. A cursory reading of these sites indicates they will purchase judgments for cash. However, many of the sites include a sentence such as:
"We purchase judgments, in its entirety, usually on a 'future pay' basis, without application fees or up-front costs of any kind."
The key phrase is "future pay". The company will not be giving cash during the "purchase" of the judgment.
The "purchase" of judgment should be in exchange for the promise to expend commercially reasonable efforts to collect judgment. However, once the judgment is assigned to the company, the creditor loses control. The company owns the judgment, and decide upon how much effort to expend in collecting the judgment, if any. Unless there is a contractual obligation to commit a specified amount of resources, the company: 1) owns the judgment and 2) can do what the company wants.
The purchase of judgment is analogous to a free option on Exxon stock. If Exxon stock is selling for $80 per share, they agree to pay half of any increase in excess of $80 per share. If the Exxon stock is assigned, and if it goes up, they pay half of the increase.
A creditor may wonder why these companies that offer to "purchase" the judgment will not pay cash at the time of transfer. With research and experience, its clear that there are four main issues: 1) The company does not have the resources to pay cash up front, 2) Lack of confidence in their ability to collect and unwillingness to take any risk, 3) absence of the resources to thoroughly and efficiently research the debtors assets to determine whether the debtor can pay, and 4) the company does not have access to or are not willing to pay for the legal resources that are sometimes required to collect the judgment. For example, the creditor can ask how many motions for turnover they have processed?
Most of the individuals operating "judgment enforcement" operations are honest people trying to help individuals and business collect debts. Their intentions are honorable and they often get good results. It is difficult to discern the good from the bad. A simple way to resolve the resultant questions is to sell your judgment for cash.
The National Judgment Recovery Center can be contacted for Judgement Recovery services in Texas. The National Judgment Recovery Center provides the best of Judgement Collection services in Texas.
http://judgmentbuyout.com/
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