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How much will Judgment Collection Cost me?

Q: If a Judgment Enforcer recovers my judgment, how much will it cost me?

A: It costs you absolutely nothing out of pocket.
On the contract Judgment Enforcers (JEs) send to you - are words similar to:
"BUYER may retain, out of revenues collected, sufficient funds to satisfy enforcement-related expenses prior to disbursement to either party."

This means the JE (or contingency lawyer or agency) advances all the time and expenses. If there are additional court-related expenses, the JE usually petitions the court to add these costs to the judgment debt. Often the judgment debtor is made to pay these costs. JEs only claim court, sheriff, and process serving fees. They do not claim, or charge you for lawyers, research, or any other fees. If the JE does not collect - it costs you nothing. Even if the JE loses money, you never get a bill. As the (Assignee Of Record and Judgment Enforcer), the JE keeps (e.g.) 50 percent of the net amount they collect from the judgment debtor - the balance (e.g., 50 percent) - goes to you.

Six examples of how judgment money is split (your specific judgment situation will be different):

Example 1: Judgment debtor owes $5,000 on a judgment dated 1-1-2015. A year later the debtor owes $5,500 with the 10% interest. You assigned your judgment to the JE, and it costs the JE $200 to collect $5,900 sometime later. You get 50% of $5,700 ($5,900 gross - $200 costs), meaning you get $2,850 in this example.

Example 2: Judgment debtor owes $5,000 on a judgment dated 1-1-2011. 3 years later the debtor owes $6,500 with the 10% interest. You assigned your judgment to the JE, and it costs the JE $300 to collect $7,000 sometime later. You get 50% of $6,700 ($7,000 gross - $300 costs), meaning you get $3,350 in this example.

Example 3: Judgment debtor owes $100,000 on a judgment dated 1-1-2010. 5 years later the debtor owes $150,000 with the 10% interest. You assigned your judgment to the JE, and it costs the JE $1,500 to collect $147,000 sometime later. You get 50% of $145,500 ($147,000 gross - $1,500 costs), meaning you get $72,750 in this example.

Example 4: Judgment debtor owes $100,000 on a judgment date 1-1-2008. 7 years later the debtor owes $170,000 with the 10% interest. You assigned your judgment to the JE, and it costs the JE $2,500 to collect $179,000 sometime later. You get 50% of $176,500 ($179,000 gross - $2,500 costs), meaning you get $88,250 in this example.

Example 5: Judgment debtor owes $100,000 on a judgment dated 1-1-2009. 7 years later the debtor owes $170,000 with the 10% interest. You assigned your judgment to the JE, and it costs the JE $1,000 to collect $8,000 sometime later. (Only $8,000 because (e.g.) the Debtor successfully went bankrupt, or died poor, or became permanently and terminally poor.) You get 50% of $7,000 ($8,000 gross - $1,000 costs), meaning you get $3,500 in this example.

Example 6: Judgment debtor owes $20,000 on a judgment dated 1-1-2009. 1 year later the debtor owes $22,000 with the 10% simple interest. You assigned your judgment to the JE, and it costs the JE $10.44 (just postage and the Satisfaction Of Judgment notarization fee) to collect $22,000 just a few weeks later. (The debtor was rich and smart). Since this enforcement was very easy, the JE might (up to the JE, do not count on such a discount) chose to reduce their fee to 30%. You get 70% of $21,990 ($22,000 gross - $10 costs), meaning you get $15,393 in this example.

Example 7: Judgment debtor owes $200,000 on a judgment date 1-1-2016. 1 year later the debtor owes $220,000 with the 10% simple interest. The debtor owns a very successful business, has 5 full paid-for houses with no liens, and a boat and a plane, and excellent credit. You negotiate a 30% fee with a Judgment Enforcer You assigned your judgment to the JE, and it costs the JE $10.44 (just postage and the Satisfaction Of Judgment notarization fee) to collect $220,000 just a few weeks later. (The debtor was rich and smart). Since this enforcement was very easy, the JE may (up to the JE) chose to reduce their fee to 20%. You get 80% of $221,990 ($220,000 gross - $10 costs), meaning you get $177,592 in this example.

All of these are just examples, the world has room for infinite variations.


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