I spend a good bit of every day answering questions about the judgment recovery business. Truth be told, the majority of those who take the time to write to me are pretty skeptical – and who can blame them? Aren’t there a million other ‘opportunities’ – many of them scams – flooding the Internet these days? How can you know who to trust, especially when it costs next to nothing for the ‘expert’ to market their product?
I honestly don’t mind answering those questions – I would much rather hear from someone if they have doubts, so at least I have a chance to personally address them.
Following are some of the concerns I find myself responding to most often.
Myth #1: Starting a judgment recovery business will cost a ton of money.
Fact: Costs to start and operate a judgment recovery business are surprisingly low. Chances are, you already have all the essential equipment you need to get going (computer and printer). Other very basic expenses will include a phone line dedicated for business use, a generic business license, a post office box and a locking file cabinet or desk drawer.
As for ongoing business operation costs, you’ll need information to help you find the debtor’s job, bank account and other assets (credit reports, banking detail information, etc. at $11-$12 per case), and court filing fees – approximately $35-$50 to seize any assets you find through the court system.
By comparison, consider that the average franchise requires thousands of dollars in investment capital. For example, a Subway restaurant will cost $12,500 cash just for the name, plus an additional investment ranging from $92,050 to $222,800 – and that’s just to get the door open. You’d need to rent or buy a storefront, hire and train employees, buy or lease equipment and inventory, and purchase advertising just for starters. Talk
about sticker shock!
Myth #2: I will have to harass the debtor to make him or her pay.
Fact: The assumption that you’ll need to become some sort of a finger-breaking thug to collect judgments is a little silly. Actually, you’ll have very little – if any – direct contact with the person who owes the debt at all. You’ll be using strictly non-confrontational, behind-the-scenes methods to collect these judgments. There’s simply no need to make harassing phone calls or send scary letters. Everything you do to enforce the judgment can and will be carried out through the court system by filing paperwork.
Myth #3: I’ll have to be some sort of legal genius to make this work.
Fact: No legal background is required in order for you to be profitable in a judgment recovery business. In fact, no background of any kind is necessary. Most of our current members didn’t have any sort of legal or collections experience when they began, either. I certainly kept this in mind when the course materials were written. I’ve trained truck drivers, soccer moms, retirees – you name it!
Don’t get me wrong – you’ll still need to do some research into procedures in your state, but the concepts and general rules are all pretty consistent throughout the US. These procedures are covered in step-by-step detail in the training materials. I’ll also provide you with the SJR State-By-State Civil Research Guide that includes specific information about the laws and codes that govern the enforcement of judgments in each state.
Myth #4: There is new “legislation” which makes collecting judgments very difficult.
Fact: Ah… the Internet rumor mill. If it’s written there, it must be true, right? Sorry, but it’s just wrong.
There hasn’t been any recent legislation passed or pending in any state that I am aware of that would affect your ability to successfully operate a judgment recovery business, or any new laws that would make enforcing judgments more difficult.
In fact, the opposite is true. In a few states, there is actually pending legislation that will make it easier to collect civil judgments. Most particularly, in some states where wage garnishments have never been permitted, there is pending legislation that will now make it possible.
Myth #5: Only attorneys can collect a judgment that was awarded to someone else.
Fact: Here is one, simple truth: Anyone who owns a judgment – or owns the rights to a judgment – can use the court system to collect. There is no court in the land that legally requires a judgment creditor to retain or use an attorney to collect a civil judgment.
Further, when all rights to a civil judgment are properly and legally assigned to another person, that person becomes the judgment creditor and owner of the judgment. This is all governed by civil statute in all 50 states.
I hope this helps to ease your mind about these important concerns. I know that if some people are asking about these issues, many more must also be wondering about the same thing. As always, I encourage you to contact me if you have questions of your own. Or if you would like to see any specific topics covered in more detail.
Please note: I am not an attorney, nor do I aspire to be one. If you need legal advice, please consult qualified legal counsel.