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Do judgments earn
interest? |
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Yes. In California, judgments
currently earn interest at the rate of 10%. |
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Do judgments
expire? |
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Yes. In California, most expire 10
years after they are “entered”. However, you can renew the judgment for another
10 years, as long as you do so before the first expiration date. There are,
however, some judgments that do not expire. Examples are family support judgments and
criminal restitution judgments. |
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Can someone else collect my judgment for
me? |
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Yes. You can hire an
attorney to do the work for you, or you can “assign” the judgment to another individual,
who can collect the judgment in his or her own name. |
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Why is it hard to collect on a judgment?
Hasn’t the court ordered the debtor to pay? |
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Indeed, if you have
successfully been awarded a judgment, the debtor is supposed
to pay you the amount awarded by
the court. Unfortunately, though, it doesn’t often happen automatically. The power
of the court is limited. We don’t have debtor’s prison in CA. Judgment
creditors can ask the debtor nicely to pay – and once in a while it works! More often,
though, it is necessary for you to work with or hire a specialist who knows how to find
these deadbeat debtors and knows how to work through the legal system to
collect what the debtor owes you. |
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How much does it cost to have someone
else collect my judgment? |
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That’s not such an easy question to answer.
It is not uncommon for an experienced judgment enforcement specialist
to charge you 50% of whatever they collect. Some work for a flat or hourly fee.
Some will purchase your judgment from you, generally for pennies on the dollar. Each
individual is free to negotiate whatever arrangements they would like, and issues such as
the age of the judgment, the location of the debtor, the wealth of the debtor and a
myriad of other issues will all factor into how difficult the judgment is to collect and
how much a profession would want to charge to collect. It is very important that you
understand completely the agreement that you make – |
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