As the owner of a debt collection agency, you have a number of methods at your disposal to collect on debts owed to your clients. However, most of the methods you have available to you are useless if the debtors have no income and no assets to seize. You can only get a judgment that stipulates any money or assets a debtor receives in the next few years can be collect on to settle the account.
The inability to close accounts can put you at odds with companies that hire your services. By selling judgments for cash, however, you can give most or all of what they are owed to your clients and sell of judgments that would otherwise be a liability to your business.
When it comes to selling judgments for cash, you at least give your clients the chance to collect on most or all of what is owed to them by debtors. Granted, the money will not come from the debtors themselves. Instead, it will come from the company that buys the judgments from your business. You in turn can turn over that cash minus any fees you charge to your clients.
The company that buy judgments then can pursue all legal avenues to collect on money or assets that debtors might have hidden from both you and the civil court. Some people have money in overseas bank accounts. Others tie up their money in retirement savings that otherwise cannot be touched by debtors. Some also receive money from government sources like SSDI that in most cases cannot be touched by debtors.
Rather than wading through the proverbial red tape to figure out what you can and cannot seize for debt collection, you hand off this task to another business. You then can focus on taking on new debt collection accounts.
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