Debts That Are Really Large

I am not a lawyer, I am a Judgment and Collection Agency Broker. This article is my opinion. If you need legal advice, please contact an attorney.

When the word judgment appears in this article, it means debts or judgments. When enforcer or recovery specialist is used, it means professionals in the debt or judgment enforcement business, including attorneys.

Judgments are usually stronger than debts, and almost every civil judgment for money, begins life as a debt.

Many new judgment enforcers or owners are way too impressed by most big-dollar judgment face values. The dollar amount of a judgment has almost nothing to do with the chances for its recovery. The judgment debtor's situation is 96% of any judgment recovery. An exception is very small judgments, because smaller judgments are often easier to enforce.

A $100 judgment against Apple Computer could be worth $100 (less if you pay a professional to enforce it). A 10 million dollar judgment against a homeless old alcoholic is most likely worth nothing.

Even when the debtor is rich, the bigger a judgment is, the smaller the chance there is that cheap recovery techniques will work, and the more chance the debtor will attempt to take actions to increase expenses and/or prevent recovery.

In too many cases, when a judgment debtor thinks they are going to be sued, or you get a judgment against them, they have already moved, hid, gave away, or transferred their assets.

Too often, world class scoundrels hide assets with people that they (e.g.) knew in college, that creditors will never learn about. Sometimes they are in such a hurry, they make mistakes, and that could open the door for a possible judgment enforcement.

In the case of big judgments against scoundrels, sometimes a expert enforcer can enforce a judgment much later. Sometimes it is like a long-term chess game. Other times, it becomes a long-term answer to the puzzle of, where did the assets go?

If you take on a big judgment, make sure both you and the original judgment creditor are realistic about the chances for recovery. Once in a while, a judgment debtor has significant assets showing. Even less often, some debtors have much more assets than is needed to recover the judgment.

On regular tough judgments, the contingency fee (charge) is typically 50% of the recovered amount, without any charge to the original judgment creditor.

In the rare situation, when the judgment debtors are actually rich, stable, and have many assets showing, the fees change, and many enforcers charge less of a percentage.

In my line of work, I notice a pattern. A person or entity was not happy with just being rich, so they defrauded people or entities, were sued, and got judgments against them. Years later, often the debtor (and many of us) aren't as rich as they did before the past.

Scoundrels often make foolish long-term choices, and the economic collapse has made even wise decisions seem now silly. The average fraud has lost more than an average non-fraud. When a judgment debtor is old, gets sick, loses their home, job, or dies; it is very often harder to recover judgments against them.

Savvy judgment debtors with assets, often hide them with other people or overseas. Most debtors don't have enough assets available to recover a big judgment against them.

While judgment owners with time and money, may wish to harass a debtor lacking available assets, all enforcers that works on contingency will give up if there are no possible available assets to satisfy the judgment. Also, laws do change in one way or another, that can make it harder to enforce judgments.


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Mark Shapiro - the judgment expert, with the best quality free leads for collection agencies, enforcers and contingency collection lawyers.