Statistic show that more than 80% of all judicial judgments go uncollected each year. The overall problem for many successful litigants is once they win in court, pay their attorney’s fees, little effort is made by their attorney to collect from the judgment- debtors.
Judgment-creditors have few resources available for collecting their judgments. Judgment Recovery Specialist for many years have been the only alternative for judgment-creditors to collect on unpaid judgments. In recent years, many state regulators in charge of collection agencies licensing have labeled judgment recovery specialist as “collection agents.” This in part is due to restrictions intended to raise state revenue, and regulations to restrict Judgement Recovery Specialist from representing themselves in court proceedings, not to mention assisting judgment- creditors.
Due to these increase regulations, the only way to efficiently dispose of uncollected judgment is to create a centralized source to sell them on the open-market, like an auction house. New website created for this specific purpose would provide a venue in which judgment recovery specialist can exam, bid on judgments, reduce overhead, and make it easier to collect judgment from debtors. This very simple business model can help the judgment recovery industry operate more efficiently, and create business support services in the process. This would be a great victory for small businesses, the backbone of the American economy when implemented. Businesses of this sort would allow state regulatory agencies to receive more revenue from the increases start-up activity, and fees that can be charged for such businesses.
Online judgment auctions would provide a venue that not only reduces the number of outstanding judgments nationwide, but provide a secondary market for quick liquidation of such judgments. Selling judicial judgments at a discounted rate could benefits the judgment creditor who has no other alternative for collection, and provide a margin for profit for the individual collecting judgments. This arrangement would reduce collection cost of the judgment-creditor, and allows experienced specialist to collect may outstanding judgments.
Online judgment auction would be a great solution for attorneys and their clients. Currently, many attorneys’ clients remain frustrated because they win a lawsuit, but ultimately loss because they get stuck with the bill. Having a resource which an attorney can submit a judicial judgment for immediate payment not only pleases the client, but keeps an attorney out of the collection business. This model creates the ultimate outsourcing solution for the judgment-creditors and attorneys.
In today’s economy debt is a vehicle that can’t be ignored. It’s great to know there soon an online system will be available 24 hours a day to buy and sell judicial judgments. Potentially this is a win-win situation for creditors overall.
by Ron E. Medley, Consumer Advocate
Article Source: http://EzineArticles.com/6806599