7 Reasons Businesses Sell Unpaid Court Judgments Instead of Collecting

Eligible Judgments: Non-consumer civil judgments only. Minimum: $3,000. Michigan-based. Nationwide service.

Many businesses mistakenly assume that securing a court judgment automatically ensures payment. The truth is that successfully collecting on these judgments can be a time-consuming, costly, and unpredictable process. For this reason, many judgment holders are opting to sell their qualifying judgments rather than endure lengthy and uncertain collection efforts. This article outlines seven compelling reasons why businesses choose to sell unpaid non-consumer civil judgments.

1. Immediate Cash Flow

Access to cash flow is crucial for any business, influencing its ability to operate effectively. This liquidity supports essential needs such as payroll, inventory replenishment, marketing initiatives, equipment purchases, and debt reduction. When faced with the prospect of indefinitely waiting for uncertain collections, many businesses confront stunted growth and financial strain, which drives them to consider selling their judgments for immediate capital.

2. Certainty Over Uncertainty

Business leaders often prefer clarity and certainty over the unknown. Selling a judgment provides a definitive outcome, eliminating the anxiety that comes with uncertain collection prospects. This allows business owners to redirect their focus toward productive strategies rather than grappling with the stress of unpredictable recovery timelines.

3. Lower Ongoing Legal Expenses

The process of post-judgment enforcement typically involves multiple legal filings, hearings, and potential other actions that can incur significant costs. These expenses can quickly escalate, consuming resources that might be better utilized elsewhere. By selling the judgment, businesses can avoid these continuous legal financial burdens and safeguard their funds for more pressing operational needs.

4. Reclaim Internal Time and Resources

Efforts to collect on judgments can disproportionately consume time and energy from staff, detracting from critical business operations. Rather than investing valuable human resources in lengthy collection processes, companies can think strategically and focus on their core competencies, enhancing overall efficiency by choosing to sell the judgment.

5. Simplifying Multi-State Challenges

When a debtor operates in multiple states, enforcing judgment often becomes more complex, requiring intricate legal navigation. This complexity can lead to frustration and stress within the business as they attempt to manage diverse legal requirements state by state. Judgments are often sold to alleviate such burdens and streamline enforcement efforts.

6. Transferring Enforcement Risk

Collecting judgments can be particularly daunting when faced with evasive debtors or those who deliberately hinder recovery attempts. Selling a qualifying judgment effectively shifts the risk of enforcement to the buyer, thereby relieving the original creditor of the pressure and potential losses associated with unsuccessful collection efforts.

7. Achieving Closure

Unpaid judgments can create lingering uncertainty and distraction for business leaders, prolonging disputes unnecessarily. Selling a judgment allows for a clean break, enabling businesses to resolve these issues and move forward without the burden of unresolved liabilities.

Asset Intelligence: Informing Your Next Steps

Before deciding on the best course of action, it is essential for creditors to conduct a thorough asset review to identify any existing assets and evaluate their potential value. This structured assessment can provide critical insights into the most effective path forward, whether it’s pursuing enforcement or opting to sell the judgment.

For expert assistance in asset location, equity analysis, and enforcement strategies, consider partnering with Wayne Bisard Investigations, a firm specializing in support for attorneys and creditors.

Submit Your Judgment for Review

Great Lakes Strategic Capital purchases non-consumer civil judgments nationwide with a minimum value of $3,000. If you seek to convert an unpaid judgment into immediate capital, we invite you to submit your judgment for review.

For further resources, you may explore:

• Nolo, which offers general educational insights on collection methodologies.
• Cornell Law School (LII), providing valuable legal reference materials.

Note: Great Lakes Strategic Capital only purchases non-consumer civil judgments (this excludes medical bills, credit cards, personal loans, or similar consumer financial debts).