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How to Sell a Judgement to a Collection Agency

When you win your case against a debtor, the judge will issue a judgment against the other party asking them to make payment to you.

Now you must collect on that judgment, and it’s not as easy as it sounds. Winning a case doesn’t mean that you automatically get paid. Many debtors don’t pay because they can’t, and some are difficult to locate to get payment. It is the responsibility of a judgment creditor to follow the legal process to force the debtor to pay the debt.

Collecting a judgment is not a simple process. It depends on the nature of the debtor’s assets, and the judgment. Judgement creditor may face a lot of challenges when collecting the judgment.

That is why if you don’t want to go through the hassles of collecting your judgment, you could sell it. But not all judgment collection agencies can be of help when you want to sell your judgment for cash. Some will give you a quick payment before they collect.

But other collection agencies will only pay you after they’ve gone through the tedious process of collecting your judgment. But by selling your judgment to the right collection agency, you will receive immediate cash for your judgment.

Maybe you’ve even levied your debtor’s bank account, garnished their wages, or placed liens on their property, but still haven’t been able to make them pay your debt. These collection firms have resources to pay you cash today and to wait for the judgment to be paid.

It’s important to state that a judgment collection company does not pay the full amount of the judgment. It only pays you a part of your judgment — sometimes only a small fraction of the judgment amount.

The judgment collection company needs to make a margin between the price it pays you and how much it eventually collects from the debtor. Note that the amount you can sell your judgment for cash depends on the age of the debt, the amount of the debt, and the financial status of the debtor.

Compare offers from different companies to select the best place to sell your judgment. Moreover, you can use a quote from one company to leverage against another to get the best selling price.

Also, look for a reputation for fair-dealing, colleague endorsements, and customer ratings to find a company that will buy your judgment fairly. Most judgment sellers expect to be paid more than what their judgments are worth. Though all judgments are different, there are some rule of thumb you can apply to get a rough idea of the value of your judgment.

Depending on the preceding factors, a cash offer for your judgment will range from pennies on the dollar to as much as 50 percent of the original judgment amount.

If you come across a judgment buyer claiming to pay over 50 percent cash for judgments, be suspicious. Before a judgment collection company buys your judgment for more than a few pennies for a dollar, they will perform intensive due diligence.

Selling Judgement to a Collection Agency

It’s pertinent that you first know your judgment debtor. Any information you have about your judgment debtor may increase the value of your judgment. Name(s), alias (es), address, age, social security number, employment, relatives — all are helpful.

Make a list of any assets or businesses you think the debtor owns. The more the debtor’s assets, the more likely it is that judgment buyers would want to buy the judgment.

Just like we stated above, judgement buyers buy judgment at a lesser amount that the value of the judgment. They give you an immediate solution to your problem. They more or less prefer to buy a judgment that is easy to collect or recover.

The best judgment to buy is against a wealthy person, a company that does not have an outstanding debt, a business with lots of locations, or a person that does not have prior debt or liens against them. Unfortunately, it is rare to find such a debtor!

Right before judgment buyers buy a judgment, they first take the time to learn about the debtor’s situation. Judgment buyers contact judgment creditors and offer to buy their debt in a way that saves them time, and yet gives them an opportunity to make a profit.

The main advantage is recovering the amount owed quickly rather than going through long and tiresome judgment recovery procedures. Judgment buyers can choose to buy judgments, and then recover the debt without the cooperation of the original creditor.

Experienced judgment buyers buy judgment at 1% to 3% of the value of debts that seem difficult to recover. This may because the debtor does not have an obvious way of repaying the debt. In a situation where the debtor has cash or assets to pay the judgment, the judgment buyer will pay more.

Judgment buyers will pay you cash for the judgment when you assign it to them. They will immediately record the assignment in court.

Once you decide that you want to sell your judgment rather than collecting it yourself, contact a judgment collection agent of your choice for help. The company will take time to assess the judgment. It may, therefore, ask you to send a copy of the judgment and some information about your debtor. The judgment buyers may also ask for copies of other court documents when needed.

But, it is important to note that all the information provided to the collection agent must be accurate to determine the validity of your judgment. Court documents are public information. So don’t worry that you’re sharing confidential information.

An offer for the purchase will thereafter be sent to you. Make sure the offer sent to you is reasonable and fair. When you agree on the amount, the judgment collection company sends you a purchase agreement and payment. They will then collect the judgment through legal remedies leaving you completely out of it.

This will save you all the hassle and worries that come from dealing with an uncooperative debtor. Always make sure to get more information about the judgment collection agency from the Better Business Bureau website. Here, you will get to see the rating and how they handled and resolved complaints from customers.

Where to Find Judgments Buying Collection Agencies

First you have to understand the importance and role of a Judgement broker. A judgement broker is an entity that helps judgment creditors to quickly find the right expert to buy or recover their judgment. Judgment brokers work by matching judgment owners to judgment buyers, layers or enforcers, that later help the original judgment buyers recover what’s owed to them.

There are thousands of judgment buyers and recovery specialists in the United States. Judgment brokers are crucial because they know the track of records of judgment buyers and recovery companies.

They know precisely what works and who can get the best results. With a good broker, soon you will be receiving quotes from several companies for your judgment. The offers will vary, so use the quote of one company as leverage against on the other when negotiating for better selling terms.

Before a company can buy your judgment, always ask for a contract. The contract should be straightforward and specify simple terms of doing business together. Also, take time to carefully read it to make sure the buyer does not come back.

1. Judgement Marketplaces

There are judgment marketplaces that are aimed to solve your problem. A good example is where judgment buyers meet people who want to sell a judgment.

Here, you will find business owners, consumers, and corporations who have listed judgment for sale. Collection agencies and lawyers hang around here to see what judgments to buy. Note that a Judgment marketplace aims at bringing together judgment buyers and sellers. It acts as a central place where you can find all sorts of judgments.

The site serves best those who want to sell their judgments, and it is also a source of business for judgment collectors and law firms. This is an excellent place to buy and sell judgments.

2. Search through the Internet

Always leverage reviews that have been left by previous customers if you plan to use the Internet. They will give you an idea of how the company deals with its customers. Look through their website for signs of integrity and experience. When you contact the company of your choice, make sure you ask about their purchasing rates and if they make sense for you.

3. Referrals

Referrals from attorneys, financial advisors, friends, and family are valuable. They may have insight into the company you are about to do business with. Take note of the information given to you and use it to make your decision.


After you must have won your claim against your debtor and you do not want to go down the daunting process of collecting, you can use the services of a judgment collection agency to collect your judgment. First, you need to sign over your judgment rights to a judgment buyer for an agreed amount.

Also, it is important that the agreed terms are written down for both parties to sign. You can now exchange the agreed amount with your judgment buyer.

Most judgment collection agencies don’t pay cash for judgments. But there are a few judgment buyers who buy judgments for cash. If your judgment debtor owes you a significant amount, it may take years to collect. So you might choose to find a judgment buyer who will pay you cash.

Judgment collectors can buy your judgment for cash to enable you get your cash quickly. But they will buy your judgment at a discount to its full value. So be prepared to trade quick payment for less money. Judgment collection is not an easy activity.

Therefore, this is a task that cannot be handled by everyone. Professionals that are knowledgeable in the field can collect more money from debtors more quickly.