If you’re holding a court judgment against someone who won’t pay, you don’t have to wait years for collection efforts to succeed. In 2026, individuals and small businesses can sell valid court judgments for cash in as little as 3–7 business days through specialized judgment buyers who purchase these legal claims at a discount.
Judgment purchasing refers to the practice where investors and collection companies buy existing court judgments from the original judgment creditor. A judgment results from a legal dispute between two parties and is resolved by the court. Instead of pursuing lengthy and uncertain collection efforts yourself, you receive immediate cash while the buyer assumes all responsibility for enforcement and recovery. Buyers typically pay less than the full value of the judgment, offering a percentage based on collectability factors such as the debtor’s financial situation and assets. After the sale, the buyer or collection agency pursues collection on their own behalf.
Most professional judgment buyers in 2026 focus on judgments of $5,000–$50,000 entered after 2015, though there’s significantly greater interest in amounts above $50,000. The seller receives a lump-sum payment based on the judgment value and the debtor’s financial condition, while the buyer takes on all collection risks and legal enforcement costs.
A civil court judgment is a final decision entered by a court ordering one party (the judgment debtor) to pay money to another party (the judgment creditor) (also spelled "judgement" in some jurisdictions). This legal document formalizes the resolution of a dispute between two parties.
This article focuses specifically on U.S. civil money judgments from both state and federal courts, not criminal fines, family law support orders, or other specialized court-awarded judgments.
The basic process follows these steps:
A civil court judgment is a final decision entered by a court ordering one party (the judgment debtor) to pay money to another party (the judgment creditor). These legal documents represent the court’s official determination that the debtor owes a specific amount of money to the creditor.
Consider these concrete examples: a $28,000 judgment from a 2021 breach-of-contract lawsuit in California Superior Court, or a $12,500 small-business invoice judgment from a 2023 New York Supreme Court case. Once entered, these court judgments can accrue statutory interest—for instance, 9% annually in New York as of 2024 for some older cases, though rates vary by state and are often lower for consumer debts.
This interest accumulation makes judgments attractive investment opportunities for buyers. Judgment purchasing allows third parties to acquire these existing legal claims from the original judgment creditor, converting an uncertain future stream of payments into immediate cash for the seller.
Judgments typically remain enforceable for many years—often 10–20 years in most states —with renewal options in many jurisdictions. This extended enforcement window gives judgment buyers substantial time to pursue collection efforts through various legal means, from wage garnishment to property liens.
The fundamental difference lies between having a “judgment on paper” versus “collected cash”:
A judgment debtor is the individual or business that a court has ordered to pay a sum of money to a creditor following a lawsuit. Understanding the profile and behavior of judgment debtors is a critical step in successful judgment collection. Not all debtors are alike—some may have significant assets and steady income, while others may be facing financial hardship or actively hiding property to avoid payment.
Judgment buyers and collection agencies rely on thorough due diligence to assess the likelihood of collecting from a particular debtor. This process involves gathering detailed information about the debtor’s financial condition, including employment status, absolute property ownership, business interests, and recent activity. By analyzing these factors, professionals can determine whether the debtor has the means to pay and which assets might be available for enforcement.
For example, a debtor who owns real estate, vehicles, or valuable business equipment presents more collection opportunities than one with no attachable assets. On the other hand, a debtor with a history of bankruptcy, minimal income, or substantial existing debts may be considered “judgment-proof,” making collection efforts less likely to succeed, if not impossible.
Effective judgment collection requires more than just knowing the judgment amount—it demands a strategic approach tailored to the debtor’s unique circumstances. This might include monitoring changes in employment, tracking property transfers, or identifying hidden assets. The more information judgment buyers and collection agencies can gather, the better they can assess the judgment's value and the best path to recovery.
In summary, understanding judgment debtors is about more than just knowing who owes the money; it’s about conducting careful research to assess their ability and willingness to pay, which directly impacts the success of any collection or sale strategy.
The judgment buyer market in 2025 includes a diverse range of professionals, from solo investors to national debt buyers and specialized collection law firms. Understanding who these potential buyers are can help you find the right match for your specific situation.
The main categories of judgment buyers include:
Institutional debt buyers typically prefer bulk purchases from banks and finance companies. At the same time, individual creditors usually work with smaller, specialized purchase judgment firms that can provide more personalized service and faster decisions.
Legitimate buyers in this secondary market will typically demonstrate professionalism by:
The business model behind purchase judgments is straightforward: buyers pay less than the judgment's face value and aim to collect more over time through enforcement efforts, keeping the difference as profit. This creates a win-win situation where sellers get immediate cash and buyers earn returns through patient collection work.
Here’s a concrete scenario illustrating how this works: a buyer pays $8,000 for a $40,000 judgment entered in 2020 against a judgment debtor who owns a house with equity. If they successfully collect $25,000 over the next three years through various enforcement methods, their gross profit would be $17,000 before accounting for legal and administrative costs.
Buyers are attracted to purchasing judgments for several specific advantages:
However, buyers also face substantial risks that justify the discounted purchase prices. Primary concerns include judgment debtor bankruptcy in 2026 or later, hidden prior liens on debtor’s property, homestead exemptions that protect primary residences, expired limitation periods, and high legal costs when the debtor contests enforcement actions.
Professional judgment buyers often maintain in-house skip-tracing capabilities, asset research teams, and legal departments, enabling them to pursue out-of-state bank accounts, rental properties, or wage garnishments more efficiently than individual judgment creditors can manage on their own.
The profit potential versus risks creates a complex calculation that experienced buyers navigate through careful due diligence and portfolio management strategies.
There’s no fixed price for judgment sales, but in 2026, most legitimate buyers pay somewhere between 1% and 25% of the judgment’s face value, rarely offering more except in exceptional circumstances. The exact amount depends on multiple factors that buyers carefully assess during their evaluation process. One of the most important factors is the debtor's financial condition, as it directly affects the judgment's collectability and value.
1–5% of the judgment amount: These offers typically apply to very weak cases in which the judgment debtor is unemployed, has a history of bankruptcies, or the judgment dates from 2010 or earlier, with little time remaining for enforcement under state law.
5–10% of judgment amount: This range covers cases with uncertain collectability, such as situations where the debtor has employment but no real property, a history of frequent job changes, or significant other debts that would compete with your judgment.
10–20% of judgment amount: Stronger cases fall into this category, including scenarios where the judgment debtor has stable W-2 income, owns a vehicle, or possesses small property with some equity that could be accessed through proper legal procedures.
20–25% or more of judgment amount: Premium cases command the highest offers, typically involving judgment debtors who own homes with substantial equity in 2025, multiple rental properties, high verified income, or significant assets that can be readily identified and accessed. These are rare cases.
State law significantly impacts pricing because interest rates and available collection tools vary dramatically. For example, wage garnishment limits and homestead protections differ substantially between states, affecting how much buyers will offer for similar judgments in different jurisdictions.
The age of your judgment plays a crucial role in determining value. A 2023 judgment with 9+ years remaining for enforcement typically commands higher offers than an almost-expired 2014 judgment with only 1–2 years left under state statutes of limitations.
Consider this comparison: a $25,000 judgment in against a debtor in New Jersey with a steady job and a home might fetch $3,750–$6,250 (15–25%), while the same judgment in a state with stronger debtor protections might only bring $1,250–$3,750 (5–15%), depending on the specific circumstances and local enforcement environment.
Selling a judgment typically follows 5–7 clear steps and can often be completed in under two weeks once you have all the necessary paperwork organized and ready for review.
Step 1 (Verification): You gather the signed judgment document, the complete case number, the docket printout from the court clerk, and any payment history showing collections from 2022 to 2026. This documentation proves the judgment’s validity and current status.
Step 2 (Evaluation): The potential buyer conducts thorough research on the judgment debtor’s assets, including property records, 2024–2025 business filings, employment verification, and checks for prior liens or other judgments that might affect collection priority.
Step 3 (Offer): The buyer sends a written purchase proposal stating the exact purchase price, payment terms, and whether payment is guaranteed upfront or contingent on the buyer meeting certain conditions.
Step 4 (Negotiation): Both parties discuss and adjust the proposed price, confirm who pays for recording fees and attorney costs, and finalize all terms of the agreement before moving forward.
Step 5 (Assignment): You sign and notarize an “Assignment of Judgment” that formally transfers all your rights in the judgment to the buyer.
Step 6 (Court Recording): The assignment document gets filed with the court that initially issued the judgment—whether a county clerk, or federal district court—so official records reflect the new judgment creditor.
Step 7 (Payment): You receive funds via check, wire transfer, or escrow closing, typically within the agreed timeframe, such as three business days after the assignment is recorded with the court.
In certain states, such as California and New York, courts require specific forms or formal notice of assignment as of 2025. Failing to follow proper recording procedures can significantly delay the buyer’s ability to begin enforcement actions.
The sequence flows from initial contact through payment as follows:
For many judgment creditors, partnering with a collection agency is a practical and effective way to recover unpaid judgments. Collection agencies specialize in judgment enforcement and have the resources, expertise, and legal tools necessary to pursue even the most elusive debtors.
When you work with a collection agency, the process typically begins with a thorough review of your judgment and an assessment of the debtor’s financial situation. The agency will use its experience and investigative resources to determine the best approach for judgment recovery—whether that means sending demand letters, making persistent phone calls, or initiating legal action to enforce the judgment.
A reputable collection agency will keep you informed throughout the process, providing regular updates on collection efforts and any payments received. This transparency ensures that you, as the judgment creditor, always know where things stand and what steps are being taken to collect the debt you are owed.
Collection agencies often work on a percentage of net recovery basis, meaning they only get paid if they successfully recover money on your behalf. This arrangement aligns their interests with yours and motivates them to use every available enforcement tool to collect the judgment. Their knowledge of state laws, court procedures, and debtor behavior can make a significant difference in the outcome of your case.
By leveraging the resources and expertise of a professional collection agency, judgment creditors can maximize their chances of recovering payment, even when previous collection efforts have failed. Whether your judgment is large or small, working with a collection agency can turn an unpaid court award into real money—helping you recover what you are rightfully owed.
When a court awards a money judgment, it doesn’t just give the judgment creditor the right to collect from the debtor’s bank account or wages—it can also create a powerful tool known as a judgment lien. This lien attaches to the judgment debtor’s real property, such as a home, land, or commercial building. It can significantly impact both the debtor’s ability to sell or refinance and the creditor’s chances of recovery.
A judgment lien gives the creditor a legal claim against the debtor’s property, meaning that if the property is sold, the creditor may be entitled to receive payment from the sale proceeds before the debtor gets any money. This makes real property one of the most valuable assets for judgment collection, and a key focus for judgment buyers and judgment collection agencies looking to purchase court judgments with strong enforcement potential.
For example, suppose a creditor secures a default judgment for $100,000 against a debtor who owns a house with substantial equity. By recording a judgment lien with the county, the creditor establishes a priority claim on that property. If the debtor tries to sell or refinance, the lien must typically be paid off at closing to ensure the creditor is paid. In some cases, if the debt remains unpaid, the creditor can even initiate foreclosure proceedings, though this process can be time-consuming and may require additional litigation.
Judgment buyers and collection agencies often conduct thorough due diligence before purchasing a judgment, specifically investigating whether the debtor owns real property and if there are existing liens or mortgages that might affect the judgment’s value. Law firms specializing in judgment enforcement can help navigate the legal process, from recording the lien to pursuing collection through the sale of property if necessary.
For judgment debtors, a lien on real property is a serious red flag—potential buyers of the property will see the lien during a title search, which can delay or derail a sale. This creates strong motivation for debtors to settle the debt, negotiate with the creditor or judgment buyer, or pay off the judgment to clear the title.
All parties need to understand that judgment liens don’t just affect real property; they can also attach to personal property like vehicles or business assets, depending on state law. However, real property typically offers the best opportunity for full or partial recovery, making it a central focus of judgment collection strategies.
Because enforcing a judgment lien can involve complex legal steps and potential litigation, working with experienced professionals—such as law firms, collection agencies, or specialized judgment buyers—is essential. These companies have the resources and expertise to assess the debtor’s financial condition, determine the property's value, and pursue the most effective enforcement options.
In summary, judgment liens on real property are a powerful tool for creditors and a significant concern for debtors. Whether you’re looking to sell a judgment, enforce one, or buy property with a lien, understanding the process and conducting proper due diligence is critical to protecting your interests and maximizing the value of court-awarded judgments.
Selling a judgment constitutes a legal transfer of property rights, not merely an informal business arrangement. Specific state procedural rules govern it and, in some cases, federal regulations for federal court judgments.
Key legal considerations require careful attention during any judgment sale:
Tax implications deserve consideration since the lump-sum payment you receive may need to be reported as income in the tax year you receive it, such as for your 2025 tax return. If you previously wrote off the original debt as a business loss, the sale proceeds could affect your tax situation, making it advisable to consult a CPA for significant amounts.
Once you complete the sale, your relationship with the judgment debtor typically ends completely. The new owner makes all collection decisions and may pursue more aggressive enforcement strategies or negotiate more lenient settlement terms, depending on their business approach and the specific circumstances.
Before signing any agreement, perform these practical checks:
Most people begin their search for judgment buyers online using search terms like “purchase judgments company in Texas” or “sell judgment for cash in 2026.” This approach can yield good results, but you’ll need to carefully evaluate potential buyers to ensure legitimacy and fair dealing.
Effective methods for locating qualified buyers include various methods, client testimonials, successful judgment collection methods, judgment collection services in Philadelphia, and judgment enforcement strategies:
When evaluating judgment buyers, focus on these concrete criteria:
Ask these specific questions during your evaluation process:
Watch for red flags like buyers who refuse to put offers in writing, pressure you to assign the judgment before discussing terms, or make unrealistic promises about guaranteed collection success. A legitimate buyer recently told a seller, “We can typically close within a week, but I want you to review our contract thoroughly and ask any questions before we proceed.” This demonstrates the professional approach you should expect.
Take time for due diligence rather than accepting the first offer you receive, as judgment buyers often have different specialties and risk appetites that can significantly affect the price they’re willing to pay.
While many judgment buyers operate legitimate businesses, scams still exist in the purchase judgments market, particularly online. Sellers should proceed cautiously and watch for warning signs that suggest fraudulent or unfair practices.
Concrete red flags that should make you reconsider include:
Protect yourself with these practical steps:
For significant judgments exceeding $100,000, investing in a few hours of local attorney review in 2026 is often worthwhile to ensure the contract protects your interests and complies with state-specific assignment requirements.
Remember that legitimate buyers understand your need for caution and should welcome reasonable verification requests. A buyer who becomes defensive about basic business questions or pressures you to “act now before the offer expires” is behaving in a way that suggests you should look elsewhere.
The goal is to convert your unpaid judgments into immediate cash through a transparent, professional process that protects your interests while providing fair value for your legal claim.
Purchase judgments through outright sales aren’t your only option for converting court judgments into money. Some judgment creditors prefer alternatives that maintain ownership while getting professional help with enforcement, potentially leading to higher total recovery.
Contingency-based collection involves hiring law firms or collection agencies that work on a percentage basis, typically keeping 30–50% of whatever they collect from 2026 onward. This option requires no upfront payment from you but means sharing any successful collections with the agency handling your case.
Judgment enforcement funding offers a different approach in which specialized companies cover all legal costs for enforcement actions in exchange for a predetermined share of recoveries. This arrangement lets you pursue aggressive collection strategies without paying attorney fees, court costs, or enforcement officer charges yourself.
Each alternative involves ongoing communication with collection professionals and requires patience while enforcement actions proceed through various legal processes:
Selling a judgment fundamentally involves trading immediate, certain cash today for uncertain, possibly larger collections over future years. This decision requires an honest assessment of your personal circumstances, financial needs, and tolerance for the complexities of judgment enforcement.
Consider these concrete personal factors when making your decision:
Immediate financial needs: If you’re facing pressing debts, medical expenses, or business cash flow problems in 2026, the certainty of cash now may outweigh the potential for larger future collections that might never materialize.
Time and energy availability: Pursuing collection efforts requires significant attention to legal deadlines, asset tracking, and enforcement procedures. Many judgment creditors underestimate the ongoing commitment needed for successful collection.
Risk tolerance: Collection involves uncertainty about debtor solvency, asset accessibility, and potential bankruptcy filings that could eliminate or delay your recovery entirely.
Judgment characteristics: Larger judgments against debtors with identifiable assets may justify holding and pursuing collection, while smaller amounts against judgment-proof debtors often make immediate sale more practical.
Don’t accept the first offer you receive—compare proposals from multiple purchase judgment companies to ensure you’re getting fair value. Different buyers have varying risk appetites, expertise levels, and geographic focuses that can lead to significantly different offers for the same judgment.
Consulting an attorney or financial advisor before finalizing any sale becomes particularly important for judgments above $100,000, complex multi-state situations, or cases involving business assets that might appreciate over time.
Consider using this simple decision checklist:
With the right buyer and an explicit written agreement, selling a judgment can turn a frustrating piece of paper into usable money while allowing you to move forward with your business or personal finances. The decision ultimately comes down to balancing your immediate needs against your willingness to invest time and resources in uncertain future collection efforts.
For investors seeking alternative assets and higher returns, buying court judgments can be a compelling addition to a diversified portfolio. Judgment buyers step into the shoes of the original judgment creditor, purchasing court-awarded judgments at a discount and taking on the responsibility—and risk—of collecting from the judgment debtor. This strategy offers the potential for significant profit, but it also requires a deep understanding of judgment collection, enforcement, and the legal landscape.
The core of this investment approach is acquiring judgments for less than their face value, then using professional judgment enforcement tactics to recover as much of the judgment amount as possible. The difference between the purchase price and the amount collected represents the investor’s return. However, successful judgment collection is often time-consuming and can involve complex litigation, asset searches, and negotiations with debtors.
Due diligence is critical. Before purchasing any judgment, investors must thoroughly assess the judgment debtor’s financial condition, including their income, real property, personal property, and any significant assets that could be used to satisfy the debt. Reviewing court records, credit reports, and public filings helps judgment buyers assess the likelihood of recovery and the judgment's actual value. Factors such as the debtor’s history of bankruptcy, prior collection efforts, and the presence of other liens or competing creditors can all affect the likelihood of success.
Costs and risks must be carefully weighed. Judgment buyers should account for court fees, attorney fees, and the expenses associated with hiring judgment collection agencies or law firms to assist with enforcement. There is always the risk that the debtor may file for bankruptcy, dispute the judgment, or have fewer assets than initially believed, which can reduce or eliminate the potential for recovery. Additionally, the collection process can be delayed by litigation or legal challenges, making it essential to have both patience and resources.
Diversification and professional support are best practices. Many experienced judgment buyers mitigate risk by investing in multiple judgments across different jurisdictions, debtor profiles, and judgment types. Working with attorneys, collection agencies, and other professionals can streamline the process, improve judgment recovery rates, and help navigate the complexities of judgment enforcement. Companies specializing in the secondary market for court judgments, such as judgment collection agencies, offer valuable expertise and access to networks of enforcement officers and legal professionals.
