Page 101 - Judgment Enforce Course

Judgment Enforcement – The Step-by-Step Course

Q. Fifty Percent still really seems like a lot to me. Can I go lower?

A. You can go lower, but I don’t encourage it. I will sometimes go lower, maybe to 40%
absolute max, if I know the JD has real property with lots of equity in it. Then I know I can
just put a lien on the property and maybe sell it or wait for the JD to sell or refinance. I
may also go lower than 50% if I know that there is an attorney involved who needs a cut of

the proceeds.
Currently I have a $100K judgment for 40%, but only because the attorney who
represented the JC was supposed to get 30%. He worked on a contingency, but he doesn’t

know what to do with the judgment now. So, I’ve agreed that he gets 10%. In this case the
JD has lots of assets, so I know it is doable, with some work.

Some collection agencies will try to collect for just 25%. But, again, they ask for
additional upfront fees from the creditor. No upfront fees with you. That’s one of your
advantages. You are the one taking the “risk.” You are doing the work. And besides,
collection agencies don’t have the skills that you will have when you finish this course.
Collection agencies usually just call and write the JD, and bother them. You are much
more active than that. Explain that to the creditor. I’ve had creditors talk to me, and then go
to a collection agency and later come right back and assign the judgment to me.

Q. But couldn’t I also charge the creditor for the costs?

A. As I’ve said, I never ever do that. I’m already getting 50%, and I explain that
includes all my skip-tracing, investigations, and so on. Court costs I can take off the top
and add back on to the judgment. Those “costs” are usually minimal. Really. My
recommendation is—don’t sweat the small costs.

Q. It says in the agreement that I will pay the creditor within 30 days of
receipt of the money, except when there is a possibility of bankruptcy, and
then it is 90 days from receipt. Why is that?

A. THE 90 DAY BANKRUPTCY RULE: Please pay
attention. Federal bankruptcy law states that any money paid
by the JD, or taken from the JD within 90 days
prior to him filing bankruptcy, may constitute a “preferential transfer”; and if
it is preferential, then it must be turned over to the Bankruptcy Trustee. By

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