What if you are a judgment enforcer, that had a $2,000 judgment assigned to you? What if your judgment debtor refused to pay, and you then planned to use your writ of execution to arrange a levy of your debtor’s vehicle, that you think is worth $3,000?

One of many judgment articles: I am a judgment broker, not a lawyer, and this article is my opinion based on my experience, please consult with a lawyer if you need legal advice.

Anyone planning to levy their judgment debtor’s vehicle should know if it is leased, or what the lien and/or loan status is. All vehicle deals depend on any prior loans and liens, so let us assume the debtor’s vehicle is paid for.

What if you make an offer to your debtor (or they make an offer to you), to take their vehicle as full compensation for (and satisfaction of) their judgment; if they sign over their vehicle ownership title to you.

A deal such as this, is different than if you had the Sheriff seize their vehicle and sell it at an auction sale, because at a Sheriff’s sale; you would have to give any money left over the judgment debt amount, back to your debtor.

With the vehicle deal, could you then pay your Original Judgment Creditor (OJC) $1,000 (as per your 50/50 split contract), sell the car for $3,000, and get an extra $1,000 profit?

Yes, judgment enforcers often make good deals. You can do anything (that is legal) that you want. If your debtor is willing to sign their car over to you, that is fine. Your only obligation to your OJC is what you both agreed to, in your purchase agreement.

If you accept the vehicle as payment in full for the $2,000 judgment, the OJC would be entitled to their $1,000, and you would need to file a satisfaction of judgment with the court. Should you then sell your vehicle, you have honored your agreements with both the OJC and the debtor. Hopefully, you will make a big profit.

However, should the market on vehicles be down and you can only sell the vehicle for $1,500, you must still file the satisfaction for the debtor, and pay the OJC their $1,000. You decided the vehicle was worth $3,000, and it is not the OJC’s fault you only got $1,500, and you will make only $500.

In summary, it is your vehicle, so you gain or lose on the ultimate sale date. The sale date has nothing to do with your agreement with your debtor, or your agreement with the OJC. These are three separate and distinct transactions.