Can a debt collector sell a judgment to another debt collector?
Before paying a debt collector for the balance on an old judgment, it pays to understand who you're dealing with.
It is indeed possible for a debt collector to sell or transfer a court judgment to another debt collection agency. This process does not create a brand new debt, but rather transfers the existing judgment to a new owner. The new owner can then continue pursuing the unpaid portion of the debt using collection methods like wage garnishment or bank levies, depending on state laws and court rules.
However, the specifics of this process can vary significantly from state to state. While a sale or reassignment of the judgment generally does not grant the new owner a fresh period to pursue repayment, there may be procedural requirements, such as filing documents with the court, that must be met before the new owner can enforce the judgment.
If you receive a collection notice from an unfamiliar company, it is advisable to verify the details before making any payments. This can typically be done by checking the creditor's name, the amount owed, and the status of the judgment. If the information provided does not match your records, you have the right to request additional information or dispute the debt.
It is also important to understand the lifespan of the judgment in your state. Court judgments are not enforceable indefinitely, and their enforceability can vary depending on state laws and any applicable renewal rules. A sale or reassignment of the judgment does not typically confer a new judgment period to the new owner.
If you are considering settling the debt after it has been sold, you may be able to negotiate a payment plan or a settlement for less than the full balance. However, the new creditor may be less inclined to offer substantial discounts since it already has the legal tools to pursue repayment. Negotiations may depend on factors like your financial situation, the age and size of the judgment, and the likelihood of full collection.
In some cases, working with a debt relief company that specializes in negotiating with creditors, including those with court judgments, may be an option. However, it is important to confirm whether the debt relief company handles judgments and to understand any associated fees. If you are currently facing a wage garnishment, bank levy, or other enforcement action, consulting with a consumer law attorney or a debt relief expert is recommended.
These professionals can help you understand the protections and options available to you based on state law.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
