How Much Do Judgment Buyers Pay? What Sets the Price

A judgment buyer pays a portion of the judgment's face value in cash in exchange for taking over the judgment and the associated collection efforts. The size of that offer depends on one primary question: how likely is it that the money can be recovered, and how long will the process take? Because there is no standard rate, two judgments of the same amount can receive vastly different offers based on the debtor, the documentation, the jurisdiction, and the effort required for enforcement.

This guide explains how we evaluate a judgment, the factors that move an offer up or down, and what you can do to secure the strongest possible offer. To learn more about our process, you can submit your judgment for a professional review.

Why every offer is a discount from face value

When you sell a judgment, you receive payment immediately, while the buyer assumes the burden of future collection. Everything between those two points represents the buyer's risk and expense:

• Time: Enforcing a judgment can take months or years, and money recovered in the future is worth less than money paid today.
• Cost: The buyer covers all court filing fees, service of process, asset investigation, garnishment, and legal expenses.
• Uncertainty: Since debtors may move, close businesses, or file for bankruptcy, the buyer assumes the risk of these unpredictable events.

A buyer who paid the full face value would be absorbing these costs and risks without any margin. Consequently, every legitimate offer is a discount based on how quickly and reliably the judgment can be converted into cash.

The factors that set the price

1. What the debtor owns and earns

The debtor's ability to pay is the most significant factor in our valuation. When reviewing a judgment, we look for:

• Real estate owned outright or with equity.
• An employer, which allows for potential wage garnishment.
• Bank accounts that can be reached via garnishment.
• An operating business with receivables, equipment, or contracts.
• Vehicles, equipment, or other titled property.

If you have any information regarding these assets, please share it with the buyer to strengthen your offer. Even if you are aware of "no known assets," many debtors possess hidden property that our investigators can uncover, potentially turning a judgment you previously wrote off into a valuable asset.

2. Whether the debtor is a business or an individual

Collection strategies differ significantly between commercial and individual debtors. Operating businesses often have accounts receivable and tangible equipment that can be liquidated, whereas individual debtors may have protections via personal exemptions. Please note that we only purchase non-consumer judgments arising from business dealings, commercial leases, and professional contracts; we do not purchase judgments related to personal, family, or household debts.

3. The state where the judgment was entered

State laws dictate available enforcement tools and the extent of debtor protections. We prioritize three specific legal areas:

• Wage garnishment: Federal law limits garnishment to 25% of disposable earnings, though some states provide stricter protections.
• Homestead exemptions: Laws regarding home equity protection vary significantly by state, such as Michigan's $3,500 exemption for non-bankruptcy cases.
• Post-judgment interest: Interest rates vary by state and continue to accrue while the debt remains unpaid. You can review current post-judgment interest rates by state to understand your judgment's growth.

For specific rules in your area, please consult our state-by-state judgment enforcement guides.

4. How old the judgment is

Every judgment has an enforcement deadline, such as the 10-year period for Michigan court records, which can often be renewed. A recent judgment provides more time for recovery, but older judgments can still be valuable if the debtor's financial situation has improved. If your judgment is approaching its expiration date, contact us immediately so we can explore renewal options to preserve its value.

5. The amount

While larger judgments can support larger offers, the debtor's financial situation remains more important than the specific dollar figure. Because enforcement involves fixed costs, we typically limit our purchases to judgments of $3,000 or more to ensure the effort remains viable.

6. The paperwork

Providing a complete file allows us to move faster and with greater confidence. Ideally, include a copy of the signed judgment, proof of service, a record of any partial payments, and any details about the debtor's assets or business. If you are missing documents, we can often pull official court records ourselves.

7. What's already been tried

Prior collection attempts provide valuable context for our valuation. Whether a previous garnishment was unsuccessful or a debtor examination failed to yield results, this information helps us create an accurate and fair offer for your specific situation.

Outright purchase or contingency purchase

We offer two primary ways to purchase your judgment:

• Outright purchase: We pay a fixed amount at closing, assuming all risk and ownership of the judgment.
• Contingency purchase: We take ownership of the judgment and enforce it, but the payment is issued as a share of the final recovery.

We are not a collection agency, and we do not collect on behalf of others; we take full ownership of the judgment upon purchase. We will advise you on which option is best suited for your specific case based on your preference for immediate liquidity versus a potentially larger future recovery.

What to look for in a judgment buyer

A legitimate buyer should operate with transparency. When evaluating a potential buyer, consider the following:

• Ownership transfer: In a true sale, ownership is transferred via a written court-filed assignment. Be wary of entities that offer to "handle collections" for a fee while leaving you as the owner.
• Payment terms: Confirm the timing and method of payment in writing before finalizing the sale.
• Fees: You should never pay application, review, or filing fees to sell your judgment.
• Transparent valuation: A credible buyer will explain the factors driving their offer, such as asset data or state law, rather than quoting an arbitrary high figure.

How to get the strongest offer

• Send your documentation: Provide the judgment, case number, and payment history upfront.
• Share debtor intelligence: Disclose everything you know about the debtor, including bank details, employer, and known property.
• Act quickly: Timely action preserves more options for enforcement and maximizes the potential for recovery.
• Understand your state laws: Use our state judgment guides to stay informed on local enforcement periods and exemptions.

Find out what your judgment is worth

For a preliminary assessment, use our free Judgment Strength Check to see how your file stacks up against key enforcement criteria. When you are ready for a firm offer, please submit your judgment for a free review. We typically respond within one business day with a no-obligation offer. If you are still weighing your options, learn more about the differences between enforcing vs. selling your judgment, or contact us if you have additional questions.

This guide is provided for general information purposes only and does not constitute legal advice. Laws vary by jurisdiction and are subject to change.