What Is My Judgment Worth? Check Your Judgment's Strength

A judgment is a court's decision that someone owes you money. It is not a promise that the money will arrive. When we buy a judgment we are buying the right to try to collect it, and we take on the work, the cost and the risk of that effort. What makes one judgment stronger than another comes down to a handful of practical things.

The debtor's assets and income

This matters more than anything else. A judgment against someone with a job, a bank account, a piece of property, or a business that is still trading gives us something concrete to pursue. A judgment against someone with no reachable income and no property is hard to collect no matter how large the number on the paper is. If you know where the debtor works, banks, or owns property, that information is often the difference between an offer and a decline.

The judgment's age and remaining enforcement period

Every state gives a judgment a limited life. Once that period runs out the judgment stops being collectible unless it is renewed, and renewal is not always possible. An older judgment also means the debtor has had more time to move assets, close accounts or disappear. A newer judgment is therefore generally stronger than an older one for the same amount, because more enforcement options are still open.

The state's enforcement tools and exemptions

Where the judgment was entered changes what a creditor can actually do. Some states allow wage garnishment; others restrict it heavily or do not allow it at all. Every state protects certain property from collection, and those protections vary widely. Some states are generous with homestead exemptions, which can shelter a great deal of home equity. Others are not. Two otherwise identical judgments in two different states can be worth very different amounts.

The judgment amount

A larger judgment is not automatically worth proportionally more. Collection costs, filing fees and attorney time are roughly the same whether the judgment is large or small, so a bigger judgment can carry a better return for the same effort. But a very large judgment against a debtor who cannot pay is still a judgment against a debtor who cannot pay. The amount matters, but only in combination with everything else.

Whether the debtor is a business or an individual

Businesses and individuals behave differently. A business may have receivables, equipment, inventory or ongoing revenue, and it may care about protecting its reputation and its ability to keep operating. An individual may have a steady job and a bank account, or may have nothing that can be reached. We look at which one we are dealing with, and at whether the debt behind the judgment is commercial or personal. We do not purchase consumer debt.

What this means for you

No formula replaces a real review. If you want to know where your judgment stands, the most useful step is to give us the details: who owes it, where it was entered, when, and anything you know about the debtor's situation. We will tell you honestly whether we can make an offer.