Collecting small claims after winning a judgment is complicated by the fact that the court does not do the collecting. Even though a judgment is awarded a staggering 79% of small claim judgments go uncollected. This is a multi-billion-dollar industry!
How To Start A Judgment Collection Business In This Multi-Billion Dollar Industry
The winning party of a judgment has many tools at their disposal once they are made aware of them. Wages and income can be garnished, property can be taken and sold, bank account can be frozen and reallocated plus many other enforcement tools. Because the winner of a judgment is not aware of the tools at their disposal and the court does not force the losing party to pay or the means of insuring collection, most never collect.
Billions of dollars’ worth of claims turn to dust yearly because of ignorance. It’s amazing that these court backed IOU’s are even collecting interest yet because of not having a simple judgment collection course on hand, that judgment sits idle in someone’s filing cabinet.
Judgment Recovery Specialization Collects On Money Owed
A small claims judgment recovery specialist can play a valuable role by legally transferring ownership of a judgment to themselves (can be a DBA or doing business as XYZ Collections Office) and enforcing collection. The winner of the judgment legally transfers the right to collect to you so you can legally pursue the collection of that judgment as your own judgment.
Work From Home Business Where You Don’t Have To Commute Or Leave Your Home For The Most Part
The winner of a judgment can legally assign the judgment to someone else for collection in all 50 states in the United States. As such, the person assigned the right to collect and pursue the judgment collection as if it were their own. There is a vast amount of opportunity available right from your local county courthouse since most of the judgements that do get reworded are never collected.
You can negotiate any percentage of the judgment as your contingency commission. Generally, 50% is the average percentage charged which is better than 100% of nothing for that judgment to lie in a drawer uncollected.
Uncollected judgments carry an assigned post-judgment interest rate usually 10% or more.
A 5-year judgment for $5,000 was awarded
With a post-judgment interest rate of 10% the judgment is now worth $5,500
You enforce the judgment with a 50% contingency fee.
Your income for a few hours work = $2,250
How Much Is Able To Be Collected:
You send out 100 solicitation letters to judgment holders and you’d likely end up with 30 to 35 judgments to collect.
Realistically, you’ll be able to collect about 50%-60% of those cases.
This means you’d collect on 15-17 judgments.
The plaintiff who won the judgement, assigns their rights, title and interest in the judgement over to you.
Figuring you winning percentage of 7- 9 judgment at an average of $2,000 is $16,000 split with the plaintiff.
You collect $8,000 plus remember the accrued interest that’s been accumulating and perhaps an enforcement cost expenses for each judgment.
We show you how to start by sending out 100 letters.