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The primary four reasons that judgments are purchased. Reason number one is to purchase a judgment, and then try to make a settlement with the debtor to make a quick profit. The second reason to buy a judgment is to try to recover as much as possible from the judgment debtor over time. The 3rd reason to buy a judgment, is to later try to resell it in the future to someone else for a profit. The fourth reason is for a strategic reason, and that's the subject of the remainder of this article. This article is my opinion and is not, legal advice. I am a judgment broker, and not an attorney. If you ever want legal advice or a strategy to use, you should contact a lawyer. Other than attempting to earn a profit, there are more tactical reasons to buy judgments. While the reasons vary, often one judgment is bought to offset some or all of what is owed on another judgment. Often, a strategic judgment purchase has nothing in common with trying to recoup money from the judgment purchase. Many tactical judgment purchases are done using a judgment broker, because a broker handles introducing judgment sellers to purchasers in ways that helps reduce the odds for wishful thinking stopping a successful sale price settlement from being reached. For example, a company named Creditor won a judgment against a company named Debtor. Later, a different company named Buyer wants to buy the judgment from the Creditor. If a Buyer contacted the Creditor themselves, the Creditor will probably ask for much more than the judgment is worth, because they know Buyer (needs) to purchase their judgment and has directly approached them. Alternatively, when a judgment broker contacts the Creditor, and tells them they will attempt to find a qualified purchaser for Creditor's judgment for free and without any obligation, then a Creditor is more likely to then sell their judgment at a more realistic market price, instead of try to find an imaginary and inflated sale price. The judgment broker is a third-party referral expert that helps 3rd-parties purchase judgments for strategic reasons. A judgment broker get paid only when there is success for the judgment buyers, a minimal fraction of a successful purchase. Judgment brokers are most often not lawyers and don't own judgments in any way, brokers are merely matchmakers. A typical complication which can happen on strategic judgment purchases, is when the judgment owner is a business. Too often workers (particularly with government-related agencies, large companies, and nonprofit organizations) think only of their own pocket, and that they won't directly benefit if they help the employer make or find income. I have experienced the following kind of aggravation happen several times: A company called Buyer wishes to buy a certain judgment after Creditor sued Debtor. If Buyer contacted Creditor directly, which would show their cards, telling them that Buyer needs to buy the judgment; and Creditor would probably demand top-dollar and the purchase transaction would not succeed. So, instead, Buyer contacts their judgment broker, with an offer of (e.g.) $20,000 for their $150,000 judgment, which is around 13%, that is a higher percentage offer than 99.5% of all other cash up-front judgment sale transactions. When a judgment broker contacts people working at the Creditor company, they are usually not interested. It turns out that from the workers to the president, not one employee was willing to help their company make $20,000 from a 6-year old judgment against a defunct long-gone corporate debtor. Without this purchase, the company would never get $20,000 for that judgment, with a market value of less than $100 (Debtor is a defunct and out of business corporate debtor, with no people liable for paying that judgment, and no assets). Yet, no company worker seemed to care about helping their employer in such a way. It almost seems like what is needed, is 30K so (e.g.) two employees could be bribed $5,000 each, if they would successfully persuade the company owner(s) to sell the judgment for $20,000. Of course bribes are not kosher, and it is unfortunate that many tactical judgment purchases will not work when employees don't care. In some situations, the solution is to keep contacting different directors, officers, and workers until one is found who cares about their employer's bottom line. Tactical judgment purchases can and do work, although all parties need to be aware of the reality that judgments always sell at a very steep fraction of their face value, and helping your company is the right thing to do. http://www.JudgmentBuy.com - Judgment Recovery. Your easy, free, fastest, and best way to recover your judgment money nationwide for 33% or less, international for 50%. Mark Shapiro - Why assign your judgment?
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