A Judgment Purchase Contract Example

August 9, 2023

Many judgment buyers get frustrated when judgment owners want to sell their judgments for much more cash upfront than they are actually worth, so most proposed judgment purchase offers are rejected. However, occasionally a judgment owner and a judgment buyer will agree on a price, and a purchase contract agreement is then needed. This article provides an example of a judgment purchase contract. One of many judgment-related articles: I am a judgment broker, not a lawyer, and this article is my opinion based on my experience in California, please consult with a lawyer if you need legal advice.


1) This agreement made on this 3rd day of January 2015, (‘Closing Date’) by and between Paul Creditor (‘Seller’) an individual, residing at 7000 Creditor Lane, San Jose, CA 95222; and Bob Buyer, doing business as Bob’s Judgment Recovery (“Buyer”) an individual doing business at 2600 Enforcer Lane, San Jose, CA 95000. Seller has obtained a judgment, as listed in Exhibit A (“Judgment”).

2) Seller warrants and guarantees that they are the current owner of the judgment, the entity entitled to enforce same; and that they have not previously sold, transferred, given, or provided said judgment to another entity.

3) Seller is selling, transferring, and assigning to Buyer, Seller’s total rights, title and interests in the judgment for the total sum of Two Thousand Six Hundred Dollars and No Cents ($2,600.00) (“Purchase Price”).

4) Seller and Buyer understand and agree that the judgment purchased hereunder may not be collectible. Within 90 days of the Closing Date, Buyer may submit to Seller evidence that the judgment purchased is a disqualified judgment. A disqualified Judgment shall be defined as a judgment in which the judgment debtor has either:

a) Died on, or before the Closing Date.

b) Filed a bankruptcy petition on or before the Closing Date, and the bankruptcy has not been dismissed by the bankruptcy court.

c) Has paid, resolved, compromised, or settled the judgment with Seller; on or before the Closing Date.

d) The judgment is invalid.

5) A disqualified judgment shall be accompanied by appropriate and reasonable documentation to demonstrate to the Seller’s satisfaction that they have provided a disqualified judgment pursuant to paragraph 4 above. Such documents may include death certificates or other public references to the debtor’s date of death; a copy of bankruptcy petition or name, address and telephone number of a debtor’s bankruptcy, or counsel’s affidavits of the debtor stating resolution by prior agreement, with evidence of their payment included.

6) Within 90 days of Closing Date, upon presentation of documentation pursuant to paragraph 5 above, Seller will remit back to Buyer the original purchase price paid for the judgment in Exhibit A.

7) Buyer will notify debtor of the acquisition and new ownership, of the judgment by written notice mailed to the debtor’s last recently known address.

8) Seller will cease efforts to, and not attempt to recover the judgment; and Buyer shall at all times conform with all the requirements of all applicable Federal, State, and local laws, rules and regulations applicable to their collection efforts, including the Fair Debt Collection Practices Act (15 U.S.C. Section 1692 et seq.), Consumer Credit Protection Act, and the Federal Fair Credit Reporting Act.

9) Within ten days of receipt of this signed agreement, and a completed and notarized Acknowledgement of Assignment of Judgment from Seller to Buyer, Buyer shall forward payment of the Purchase Price to Seller at Seller’s address above.

10) After the Closing Date, Seller shall be discharged from any and all liability arising from any actions taken by Buyer.

(Exhibit A) judgment debtor’s case number 1234567, Purchase Price of $2,600, and information known about the debtor: Dan Debtor.

Signed and dated by:


Paul Creditor ________________

Buyer: Bob Buyer _____________

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