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How to sell a debt judgment for cash

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Selling a debt judgment for cash involves finding a buyer, such as a collection agency or a judgment purchasing company, willing to pay for the right to collect the debt. This process allows the original judgment holder to receive a lump sum, often a fraction of the judgment's value, and transfers the responsibility for collecting the debt to the buyer.

Debexpert is back with more useful info for you! Today's article tells our readers about what is a judgment, how they can sell their judgments for cash, how judgment collection agencies can help them with it, the best way to do it, and much more. If you have any problems and you're currently looking for the best solution, this ultimate guide is for you.

Can I sell my judgment for cash?

Despite having a successful case with the labor board, your judgment hasn't been paid out, and fees for your payment remain unsettled. Even if you, as a creditor, have a judgment lien on your debtor's property, garnished their salaries, or levied their bank account through a collection agency, you might not have been able to get them to make the payment or settle your claim suit.

It might be particularly challenging for a creditor to enforce debt collection practices on a judgment for delayed payments when it involves a debtor's lost wages adjudicated by the labor board or damaged property. Perhaps neither you as the creditor nor the majority of collection agencies have the financial means to wait for the enforcement officer to complete the filing and make the judgment debtor pay up, including any associated fees. However, some judgment debtors do have the financial capacity to pay you in cash now while you, as the judgment creditor, wait for the court judgment or money judgment to be satisfied.

There is a catch, though. The collection agency, acting as the creditor's entity responsible for collecting judgments from the debtor, does not cover the entire judgment sum ruled by the city court. Occasionally, the labor board judgment only pays you a small percentage of the verdict and that's all, leaving the judgment buyer to deal with a judgment collection agency or the judgment debtor. The creditor's judgment collection company must profit from the difference between the amount it pays you and the amount it ultimately recovers from the debtor in city court. This often involves an enforcement officer seizing property.

Depending on the debtor's age, size of debt, and current financial situation, the creditor may be able to sell the judgment for cash in city court for a certain sum against the debtor's property. Choose the best city court in your county to sell your judgment by comparing offers from several creditors, using information from various businesses. In order to obtain the best selling price from a judgment buyer, you can also utilize a quote from one creditor as leverage against another in court, within the same county.

To discover a court-approved company that will buy your judgment from a debtor honestly, check for other qualities such as a reputation for fair dealing with creditors, recommendations from coworkers in the county, and customer ratings.


I want to sell my judgment, but am I allowed to?

While wanting to sell their court judgment, some debtors may be unsure about the enforcement officer's role and the creditor's rights under the law. The answer is yes, it’s legal. Similar to selling other personal property, any court judgment involving debtor and creditor may be sold for enforcement. This covers civil judgments involving the debtor and creditor, labor board decisions, divorce court decisions, probate court decisions, bankruptcy court decisions, and enforcement officer actions. You can sell a judgment.

By selling your court judgment as a creditor, you are absolving yourself of all responsibility towards the debtor in the case. The debtor, the individual to whom your judgment is sold, assumes your position as the judgment creditor.

Any actions taken by the judgment buyer after you, as a debtor, sell your judgment are independent of you. They, as the debtor, will bring all judgment enforcement actions only in their own names. No part of their conduct will be your responsibility. In reality, a debtor facing judgment enforcement will have indemnification clauses in their purchase agreement.

Here's the best tip we can provide you if you're a debtor: get in touch with a judgment buyer if you want to avoid the legal hazards of trying to collect your judgment.

How much can I sell a judgment for?

Most debtor judgment sellers expect to receive more money than their judgments are actually worth. Although every debtor judgment is unique, you can use a few general guidelines to obtain a good idea of how valuable your debtor's position is. In order to present an offer, any judgment buyer who purchases judgments for cash will consider the following elements. This is crucial in the judgment collection process. It's important to note that both the judgment debtor and labor board judgment are taken into account.

Whether or not you employ judgment collection agents, it could be impossible to collect your judgment if the debtor has no cash on hand or other readily apparent assets. Do not anticipate receiving a financial offer from a judgment buyer for your judgment collection against the judgment debtor.

If the debtor has a stable job and has never filed for bankruptcy, you might be able to sell your judgment for money. However, you shouldn't anticipate getting more than a few cents on the dollar for your judgment. A judgment collection agency that will compensate you when they recover is more suited to use your judgment.

However, there is a significant chance you can sell your judgment for cash right now if the judgment debtor possesses real estate with equity. A judgment buyer will make a cash offer for your judgment after taking into account the value of the real estate, deducting the costs of enforcing the judgment, adding a margin for error, and covering expenses.

Your judgment may be offered in cash for pennies on the dollar up to 50% of the original judgment value, depending on the circumstances mentioned above. Be wary if you come across a judgment buyer claiming to pay more than 50% cash for judgments. Before a judgment collection company buys your judgment, it will conduct extensive due diligence before agreeing to purchase your judgment for more than a few cents on the dollar.

Why are most judgments worth pennies on the dollar?

The majority of judgments sell for pennies on the dollar for the following frequent causes:

  • Bankruptcy has been declared by the debtor;
  • The debtor has Poor employment history and no assets;
  • The debtor is the subject of other judgments;
  • You might easily have your default judgment overturned.

Any judgment's likelihood of being upheld is not guaranteed. Judgments are not cash, as you should be aware, and their value is completely based on the value of the debtor's assets.

How can you maximize the worth of your judgment?

Identify judgment debtors! Any knowledge you have about the debtor who is the subject of your judgment could raise its value. Names, aliases, addresses, ages, social security numbers, employment information, and relatives are all useful in judgment collection. This data can assist in tracking a judgment debtor. List any property or enterprises you believe the debtor to be the owner of, relevant to judgment collection. The more assets the debtor has, the more likely Judgment buyers aredesire to pay cash for the judgment.

Second, don't underestimate how long it will take to receive money from your debtor during the judgment collection process. Judgment collection may happen today, tomorrow night, in a year, in ten years, or never from a judgment debtor. Maximizing value requires patience. However, working with a judgment collection agent will improve your chances of getting your judgment sooner than you anticipate.

How do I sell my judgment to a collection agency?

The simplest approach to get your money back is to sell your judgment. Even if you were successful in your claim lawsuit, it may have been a waste of time and effort to sue your debtor because the courts are not very helpful in judgment collection, getting your money back.

What should you do after winning your claim lawsuit and initiating judgment collection from the judgment debtor, then? A judgment can be sold to a judgment collection company for cash.

The procedure of selling your judgment to a collection agency is quick and simple, regardless of whether the judgment collecting agency pays for the judgment in cash up front or on a contingency basis: Two one-page forms to sign and return will be sent to you by the judgment buyer overnight. There will be a check included if you are selling your money judgment. Selling your judgment to the collection agency is limited to just that. Cash your check after twice signing your name.

Where to find judgment buying collection agencies

The significance and function of a judgment broker must first be understood. A judgment broker is a company that assists judgment creditors in finding the best expert to buy judgments promptly or collect them. Judgment brokers match judgment owners with judgment buyers, layers, or enforcers, who then assist the original judgment purchasers in collecting the money they are owed. In the United States, there are countless judgment buyers and recovery experts. Due to their familiarity with the past performance of judgment buyers and judgment recovery firms, judgment brokers are essential. They are completely aware of what works and who, as a judgment debtor, can produce the finest outcomes. If you contact a reputable broker as a judgment debtor, you will soon be obtaining quotations from several businesses for your consideration. When negotiating for better selling conditions with a judgment debtor, use the quote of one company as leverage against that of another, because the offers will differ. Always request a contract before allowing a business to purchase your judgment. The agreement with the judgment debtor should be clear-cut and provide basic conditions for conducting business. Spend time reading the judgment debtor's documentation thoroughly to ensure the buyer will not return.

Judgment marketplaces

There are many marketplaces designed to address your issue. A well-known judgment marketplace,, is a nice example, where judgment buyers and sellers can connect. You can find individuals who own businesses, consumers, or corporations who have placed judgments for sale there. Here, collection companies and attorneys gather to find judgments to purchase. Keep in mind that a marketplace for judgments seeks to connect buyers and sellers. It serves as a hub where many judgments can be found. The site is most helpful to people who wish to sell their judgments, and it also provides business for law firms and judgment collectors. This is a great location to purchase and sell judgments.

Search through the Internet

If you're going to use the Internet as a judgment debtor, make sure you use consumer reviews as a resource. They will offer you a sense of how the business interacts with its judgment debtor clients. Look for indications of honesty and expertise on a judgment debtor's website. Ensure to enquire about the judgment debtor's purchase rates when you get in touch with the firm of your choice, assessing whether they make sense for you.


It's helpful to get recommendations from lawyers and financial planners when dealing with a judgment debtor. Friends and family can also provide valuable advice. They could be privy to information about the judgment debtor business you're about to transact with. As you make your choice regarding the judgment debtor, take notice of the information that has been provided to you.


We sincerely hope we've helped you to get a full understanding of judgments, as well as how to sell them for cash, and how to do it properly to avoid all the possible difficulties. To get more key details, don't forget to turn to our FAQ list and look through all the common questions people ask. Thank you for reading! And keep our helpful guide on hand just to be on the safe side. If you're interested in exploring the option to sell your debt portfolio, we're here to assist you with that as well.

Written by
Carlos Aispuro
Lender Relationship Director

With thirty years of experience in banking, debt collections, compliance, audit, and governance, I have supported strategic plans and improved customer experiences. I possess hands-on knowledge in crucial C-Suite areas, including developing new policies and procedures, optimizing their models, and exploring new tools to help institutions achieve their goals more effectively.

  • Banking, debt collections, compliance, audit, and governance expert
  • Crucial C-Suite areas expert

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