The Top Ten Mistakes
Judgment Enforcers Make
Judgment enforcers can make a decent/good living. However there are some pitfalls
to avoid. Here is a list of the top ten mistakes many new to the judgment
recovery business make:
1) Not planning enough before starting your business. Are you going to be
a sole proprietor or a corporate entity? Have you researched the laws of
your state? Does your state allow entities to represent themselves in
court? Are you going to work from home, or rent a business space? Some data
providers demand that you have a business address. Are you going to get a
post office box? Are you going to get another telephone line?
2) Not reading enough about the business. Have you studied any training
materials on judgment recovery? There are many good courses, and also some
free ways to learn. Make sure to find these resources and study this
business before you begin.
3) Not starting with small claims court judgments. If you have never been
in court, you might make a mistake or two. Make sure any mistakes you make
involve small amounts of money. Stay in small claims court until you have
recovered at least ten judgments.
4) Wasting money on poor debtors. You cannot take what is not there. There
is no reason to drag poor debtors to court. Don't spend money on
recovering money from a debtor unless the debtor has money.
5) Taking judgments too far away. When starting out, many judgment
enforcers take almost every judgment they run across. When the debtor, the
court, or the debtor is far away, it's better to refer the judgment to
another judgment enforcer or a judgment broker. Especially when starting
out, only recover judgments that are close to you.
6) Not learning the laws of your state. You must also learn the rules of the
court you are going to be working in, the federal laws about judgment and
debt collection, and the laws of your state. If you don't know the laws,
you won't recover money, and might end up spending money
if you make a mistake
7) Confusing large judgments with large assets. A $5,000 judgment against
Bill Gates is worth much more than a million dollar judgment against a
70-year old homeless person. It's not the size of the judgment, it's the
size of the available assets to pay it.
8) Not budgeting for expenses and taxes. Any business has expenses, taxes,
and a startup period with no income. Expect to work hard for months before
seeing the first dime of profit. When you make a profit, remember some of
it must be saved for taxes.
9) Not keeping current with the business. Laws, economies, policies, and
the world are always changing. You must keep current and
always keep studying.
10) Not understanding what is a good judgment lead.
Raw leads are almost worthless.
The three easy ways to
get judgment leads are to:
A) Put up a web site, and pay Yahoo, Bing, and/or Google to drive leads to
your site. Or generate good content that helps people.
Unfortunately, those leads are sometimes from shoppers who
spend a hour of your time, then spend a hour of time with many other
judgment enforcers, trying to find the best "deal".
B) Buy raw leads from a lead provider. Unfortunately most of those leads
will not pan out. Many of the creditors have no clue or will not assign
their judgment to you. Many of the creditors and debtors will not be found.
Leads from both A and B above, are more likely to
have judgment owners that think their judgments
are cash; and want you to buy their judgment
for too high a price, or enforce it for
too low a price.
C) Get no-cost upfront judgment leads from a judgment broker. These are
the best leads as the debtors are found, and the judgment owners are
informed, and want their judgment enforced or purchased.
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