In our current economy, it is more difficult than ever to make a living in the judgment recovery business. Of course, it is also much more difficult to make a living in most fields these days.
The primary way to make money in the judgment recovery business is to buy judgments outright, or on a future-payment basis; and then to recover them. This article discusses additional (and related) ways for people in the judgment recovery business to earn more income.
This article is my opinion, and not legal advice. I am a judgment broker, and am not a lawyer. If you ever need any legal advice or a strategy to use, please contact a lawyer. Every business relies on the quantity and quality of the work you get done. Here is a list of other options, for those in the judgment recovery business, to possibly earn multiple streams of income:
The most common judgment business model is well-known; you buy judgments outright, or on a future pay basis; and then try to recover them yourself. Another spin on this, is to hire a lawyer to enforce them, or outsource judgments to a collection company.
The next potential income stream is to find judgment leads, screen the creditors; and then refer the judgment leads to a judgment broker, who will pay you if the judgment is later recovered. An advantage of referring leads to a judgment broker, is that they take any kind of potentially recoverable judgment lead, worldwide.
The next potential income stream is to buy judgments outright, with the goal of quickly settling them at a steep discount, or working out payment plans. That eliminates the expenses and hassles of involuntary recovery attempts. The goal is to make less money on each judgment, with much less work, and get paid much quicker, and then move on to the next judgment.
Buying judgments outright is usually not easy, because most judgment owners drastically overvalue the cash upfront value of their judgments. It may be a good idea to pay a bit more than the judgment is really worth; to avoid dealing with the original judgment creditor in the future, as is usually the case with a contingency future-payment sale.
The next income path to consider, is to become a registered process server. In some states, this is very easy to qualify for, other states make it more difficult to become a process server. While you cannot serve legal paperwork that you are a party to, you can serve papers for others. The most time consuming and potentially riskier part of process serving is serving witnesses, defendants, and judgment debtors.
The more paperwork intensive, however more predictable process serving jobs are doing bank and employer levies. Being a process server gives you access to more database providers, exposes you to more judgment leads, and can provide extra income. However, be sure to carry a gun IF your county and state permits you to have a concealed gun permit/licence, if not, keep some wasp spray handy.
Becoming a registered process server is worth it. One of the best ways to break into this business and begin collecting on your judgments is to find and work with a judgment enforcer in your area. If both you and the person you are working with become an registered process server, you can help each other tremendously by absorbing each other’s registered process server fees which can be tough to cover when you haven’t made a dime. Below, are the steps required to become an registered process server in Los Angeles County, California.
First you have to purchase a bond; follow this link www.mcgloneinsurance.com/pdf/process_server.jpg >and print out the form, fill it out and check with them on how to return the form.
Then you have to take the process server form to a Live Scan location. Warning, the code on the form is wrong. Most UPS stores know what to do. Then you go to Lavote.net and get the process server form, and take it to the Recorder’s Office.
Remember that your bond has to become effective the day you show up to Recorder’s Office, which means that by then, you have already taken care of the steps above.
Another possible income opportunity is to become a legal document preparer (sometimes called a legal document assistant). Doing this, you do not offer any legal services, however you can help people fill out the court’s or the Sheriff’s legal forms.
Other options are becoming a court runner, or a court researcher. If you are close to your Secretary Of State or a County Recorder, you can start a business offering to go to the clerk’s window there and pulling records or filing paperwork, for those not close to such entities. None of these choices are easy money, yet all of them have the potential to generate additional cash flow