Start-up of Home-based Judgment Recovery

Hello Members, My name is George R. Rumph and I am very excited of being a new member in the collection industry. Previously having work for an collection company, I also have found it innovating to venture out on my own. Although in the initial stages, I would offer any assistance, guidance, ideas in becoming a great team player who believes in giving back to the community. I consider myself like a "Huge sponge" who is always seeking valuable information to become the best I can be. Thank you in advance for all info.

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Permalink Reply by Petra Alluis on April 24, 2009 at 10:57am: George,
Well, welcome aboard. I have been operating my own Judgment Recovery business since 1993 and the Founder of the Judgment Recovery Institute of Advanced Learning. I have an interesting free report available on my website at www.jrial.net on how to REALLY make a six figure income in the Judgment Recovery business. I invite you to download this report. I am sure you will find it to be some interesting reading.

Respectfully,
Petra Alluis
www.jrial.net
www.garr-jrpros.com; ▶ Reply to This

Permalink Reply by Zachary Martin on June 8, 2009 at 2:23pm: George,
My name is Zachary Martin and I am the NAM at ICEware Corp, a company that offers Collection Software, Hosted collection services and Hosted IT support. ICEware is based on Zero-Footprint Technology, meaning there is no need for in-house servers or other hardware. It is browser-based as well; thus uses only limited resources and works in an “on demand” environment. Also, ICEware Corp. acts as an outsourced IT department for clients; quickly and efficiently handling unlimited updates, reporting, customization and training at no additional cost, and eliminating the need for an in-house IT department. We offer an exchange model that makes it possible for a company or individual to manage multiple remote offices anywhere in the world from a centralized location. As an added note, ICEware can be integrated with any third party vendor including dialers, letter vendors, skip tracers and credit bureaus at no additional cost. The purpose of ICEware is to automate a company’s processes and allow it to run the way management sees fit; our solutions are customizable to work with any sized business and to allow collectors to work any kind of paper. Please feel free to contact me at z.martin@icewarecorp.com or 1-866-927-0806, ext 208.; ▶ Reply to This

Permalink Reply by ken winfield on June 16, 2009 at 11:25pm: hello my name is ken winfield and i believe simple software can help you. all in one software with built in skip tracing and phone system. www.simplesoftwarecorp.com; ▶ Reply to This

Permalink Reply by Francisca Levy on July 10, 2009 at 8:41pm: I would really like some more incite regarding the Judgment Collections business rather then another coarse! There are dozens filling the Internet saying we are leaving thousands of dollars on the table by not buying their coarse. If there is so much money why are they wasting time selling the coarse and not collecting judgments! If someone has substantive information on starting and operating a judgment collections business please share!; ▶ Reply to This

Permalink Reply by JOHN A. TATOIAN ESQ. on July 11, 2009 at 8:44am: Einstein said, "Genius is the ability to make the complex simple." That being said, like any business, the judgment recovery business is no different. There are essentially two ways to profit from a business model; 1) work the business model on your own or, 2) sell the idea of the business model to another. The fact that someone is selling the "blueprint" to their business paradigm should immediately alert you to the profit potential, or lack thereof, of the business in general. Absent a businesses pro forma financial statements, prepared by a licensed attorney or a Certified Public Accountant, I would not expend any sum of money based upon the representations of another, especially someone in the "judgment recovery business".

That being said, the problem with the judgment recovery business is threefold;

1) If a person or business is agreeing to collect upon a judgment on a contingency basis, there is the issue of the unauthorized practice of law (for which there may be both criminal and civil sanctions, depending upon the jurisdiction you are in), based upon case law & State Disciplinary Opinions. The analysis is as follows;

a) The unauthorized practice of law is where a person not licensed to practice law either holds himself out as an attorney to the general public or engages in representations or conduct on behalf of another which affects that person's specific legal rights.

b) If a judgment recovery specialist is agreeing to collect a judgment/debt for the original creditor in exchange for a percentage of the amount collected, the courts have reasoned that the judgment specialist is working on behalf of the original creditor and is filing pleadings, motions, garnishments etc... which substantially affect the original creditor's legal rights. In State ex rel. State Bar of Wisconsin v. Bonded Collections, Inc., 36 Wis.2d 643, 154 N.W.2d 250 (1967),[3] the Supreme Court of Wisconsin considered the following issue: “Does a course of conduct whereby a collection agency takes assignments of accounts for collection, . . ., brings suit in its own name, and then pursuant to a prior agreement deducts from the proceeds, costs, and a fixed percentage as its fee and remits the balance to the creditor, constitute the unauthorized practice of law?” 154 N.W.2d at 253-54. In concluding that it does, the court stated “[i]t is sheer hypocrisy to conclude that the percentage retained by the collection agency represents its equity or ownership share of the claim. It is its fee or charge for professional services rendered.” 154 N.W.2d at 256. The Wisconsin court also noted that “[t]he collection agency by going into court representing itself as the client perpetrates a fraud on the court.” Id. Thus, you have courts, state authorities & lawyers just chomping at the bit to shut your business down in order to perpetuate their legal monopoly.;)

2) Assuming arguendo that the collection of a judgment on a contingency basis is not the unauthorized practice of law, and assuming the split between the original creditor & the judgment collector is 50/50, that doesn't leave much profit margin for the latter. Thus, if you want to leverage your time & hire out an attorney (or another collector) to collect upon these accounts, that will eat into your profit by approximately 20-30%, leaving you with a net margin of around 20%, assuming you collect anything.

3) Your target market is comprised of original creditors who have obtained judgments in small claims courts and which are unsatisfied (have not been collected upon). These people are average American consumers or "mom & pop" businesses. For the most part, they are unsophisticated with the process of "selling" a judgment, angry &/ or frustrated with the fact that they have not been paid on their judgment & greedy for the most money possible. It doesn't take a Harvard MBA to discern that an unsophisticated, angry, greedy target market is bad for business (impedes profits).

The upside of this is there is a way of actually making a good profit in the judgment recovery business. But you need the skill and expertise of a licensed attorney & tax accountant/specialist. The downside is most attorneys are arrogant, abrasive, incompetent, money grubbing, lying thugs with a license.;) They are this way because most simply aren't making enough money; they are frustrated nickle and dimers. Most truly financially successful people are very pleasant, cut to the chase quickly, aren't "salesmany" bull sh***** types, are razor sharp & laser focused, fly under the radar and aren't out hawking "snake oil" for a few dimes. Please feel free to contact me direct with any questions you may have.;)); ▶ Reply to This

Permalink Reply by Brian on March 31, 2010 at 7:35pm: John, well put and true. THE DIRTY SHAME of it is however. Attorneys have no problem taking the fees to obtain a judgment, many times by default. Which anyone that can read can do this Pro Se.
But, when the hard part comes along the attorney does not enforce the judgment. So then who?

Well in my case I am a bail bondsman. I had many people stiff me and also owe for bail gone bad. I gave My attorney (actually I tried 3), the case and even the bank account numbers, Mortgages I filed on the homes, places of employment and the like. Guess what? It amounted to be wallpaper, that is all the judgments were worth.

So I learned how to do it on my own because the lawyers could make more money and faster by suing rather then enforceing. Proof? I have more the 10 lawyers that send me cases to enforce.; ▶ Reply to This