ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Judgment Recovery: An Interesting Home Based Business

Updated on February 18, 2010

How to start a Judgment Recovery Business

Even in a tough economy there are still ways in which anyone with the proper motivation and skills can make money from home to supplement their current income with little money out of pocket.

A little known opportunity out there that deserves a good looking into is the judgment recovery business. Judgment recovery is still not regulated and in most states, no special license is required. This business requires having good follow up habits and investigative and organizational skills. Having a good working computer with an internet connection and a few days a week to  spare to spend time at the county clerks office for information gathering may also be required.

Judgment Recovery is the business of finding people who have been awarded a judgment but haven't been able to collect their money and then locating the dead beats who owe them the money and using the laws of your state to recover that money.

The best way to do that would be to start at your local court clerk and go through the small claim files looking for the files where the judgment was unsatisfied. Many counties now have their archives on-line so you may not have to leave your house.   After gathering all the pertinent information such as phone numbers, addresses new and old, drivers licenses numbers, social security numbers and a bit of the case history, you would then send a letter to the person who hasn't been able to collect their money offering your collection services to them for free. "Free?", Yes, free. But how do I get paid? you ask...Well the way you make your money is coming to an agreement with a claim holder which is usually 50% of the money awarded.  When an agreement is made you will be going after the money on your own behalf because the judgment will be in your name.

For example, Let's say you contact Sierra, who three years ago was awarded $5000 by a judge but Max, who is the debtor never paid up.  In fact he never had any intention to pay and Sierra has no clue where Max is. By now though, Sierra probably forgot all about that money that Max owes to her or figured she would never get it. (The courts job is to settle a dispute but they don't help you in collecting the money). Sierra received the letter you sent her and contacts you and the both of you come to an agreement, filling out the proper paperwork.  One to transfer ownership of the judgment and the agreement between Sierra and yourself for the amount that will be paid to her after you collect from Max. The claim is now in your name and you have all the right to collect on it but first you must find Max. This is where you put your investigating skills using skip tracing methods.  Once found, there are a few different ways to collect the money since you now hold the judgment.  You can use wage garnishments, property liens, direct levying and bank account seizures. 

Let's say you find out that Max holds a bank account. So you file the proper paper work for a bank seizure and after securing the $5000 originally owed to Sierra but now owed to you, you call Sierra and tell her you have a check for $2,500 for her. She's happy she finally got paid something and you're ecstatic because you just got paid for your hard work.

Small claims vary from state to state, but they generally cap out from three to five thousand dollars. This means that they can provide great income. As mentioned before Judgment Recovery specialists usually take a commission of about 50% of what is owed plus any interest that has acummulated.

There are many Judgment Recovery Courses available online for under $200 with great online resources. Although any person holding a judgment may go out and do the work themselves of recovering the money they usually don't. In fact more than 80% of small claim judgments go unsatisfied. So there is a vast amount of work to be done out there. This is still a greatly undiscovered niche that has a lot of potential for someone willing to put in the leg-work. If you enjoy investigative work, you might find that Judgment Recovery can be a good home based business that is both fun and rewarding.


    0 of 8192 characters used
    Post Comment

    • Treasuresofheaven profile image

      Sima Ballinger 

      8 years ago from Michigan

      SugdorZ, I started a Judgment Recovery Business years ago, and you are correct. This is true information. If you are good at skip tracing and locating people, this could be good for you. You can sign on with a skip tracing company to help you locate people. I had someone's wages garnished and didn't feel comfortable with it - so I immediately got out of that business.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)