You Get The Most Money For Future Pay
I am not a lawyer, I am a judgment matchmaking specialist (Judgment Broker). This article is about the future-pay concept on civil money judgments. Future-pay means one gets paid later, after money is recovered, instead of cash up-front "now".
Every judgment, is just a piece of paper until available assets are located, and the judgment is successfully and eventually recovered. If the debtor has lots of available assets, you will probably get some money back quickly, however nobody can or should guarantee that.
Judgments are not cash, they are chances for cash in the future. Judgments are expensive and difficult to recover, and their recovery depends almost only on the debtor to repay them. Bankruptcy and other factors can make judgments worthless.
Most people owning judgments want to sell them for cash up-front. The problem is that nothing is guaranteed in judgment enforcement. Because of the risks of not recovering anything, most judgments sell for 1-10% of their face value on a cash up-front basis.
Future-Pay reduces the risk for the judgment enforcement expert or lawyer. Because of the reduced risk, they can later pay you a much higher price for your judgment, usually at least 50% of whatever can they recover from your judgment debtor. Everyone would rather have cash up-front, and that may be possible, especially when your judgment debtor has a large amount of available assets. However, the reality is that most judgment debtors do not have obvious available assets to pay off a judgment. In most cases, future-pay gives you the best chance of getting the most money for your judgment.
Future-pay allows the judgment recovery expert to be patient and wait for the debtor to acquire some assets. Even poor debtors might inherit assets such as money or real estate, win the lotto, or get a job - anything might happen. A cash up-front buyer takes all the risk, and cannot count on anything changing with the debtor.
With most judgment collections, money is recovered in chunks, either via a payment plan, or sheriff levies of the debtor's assets. Usually money is not recovered easily, or with one payment.
It can take many years and a lot of work to collect a judgment - so even if you get cash up-front for your judgment, the money is always recovered later on a future pay basis.
When a judgment buyer or a judgment enforcement expert is local to your debtor, that increases the likelihood of getting money from the debtor. With Future-pay, you then get (e.g.) fifty percent of the collected money (sometimes including interest) paid to you.
Many people agree that (e.g.) fifty percent later (often including future accruing interest) is better than a tiny fraction offifty percent "now".
About the Author
Mark D. Shapiro - Judgment Broker - Free leads for contingency collection attorneys. http://www.JudgmentBuy.com - is where Judgments quickly get Purchased or Recovered by the best!
Tell others about
this page:
Comments? Questions? Email Here