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I'm not a lawyer, I am a judgment expert. This article is my opinion, from my experience in California. Laws vary in each state. If you ever need a strategy to use or legal advice, you should contact an attorney. In bad economies, judgment debtors become more tempted to take advantage of the potential "proof of service loopholes" created with default judgments. Some judgment debtors will assert they were not served, even when they actually were, and attempt to set aside the default judgment against them. If you're considering becoming an assignee, pay attention to the proof of service. When a default judgment is set aside (vacated), that's not good news for the Original Judgment Creditor (OJC). When a judgment is set aside, the OJC has the option of suing the defendant yet again and possibly winning another judgment. If a judgment is assigned, the causes of actions for the judgment does not transfer. The assignee of record hasn't any recourse when the judgment debtors tries vacate or appeal the judgment. Also, the assignee has no recourse if the county recorder or a court clerk makes an error, that prevents their judgment lien from attaching to a judgment debtor's real estate. If a default judgment is vacated, it's usually a disaster for an assignee of record, because the cause of action is gone, which means the judgment is now worthless, and the assignee of record loses whatever they paid trying to enforce the judgment. When a judgment was a default, does not mean it will never get enforced. However, a default judgment is weaker than contested judgments. In certain states, for example New York, default judgments need a new case file, and prevailing in another court lawsuit to be domesticated in their state. There are methods to fix marginal proofs of service for judgments by default. One way is to get the debtor personally served anything related to the judgment (using a Sheriff or a registered process server), then wait six months; and then a debtor will not be able to claim successfully they didn't learn about the judgment. When one does this, any matters about the proof of service for the lawsuit not being served on a judgment debtor properly, become moot. Certain judgment recovery specialists have judgment purchase contracts that require OJCs to reimburse them something if a judgment gets appealed, vacated, or when a judgment debtor successfully gets protection by going bankrupt. Some OJCs don't like those kind of policies, and find other judgment recovery specialists with agreements that don't require a reimbursement under such conditions. I can see the issue both ways. When a judgment gets set aside because of a defective proof of service, the judgment recovery specialist gets burned because the OJC did not make sure to have the debtor served personally by a Sheriff or a registered process server. When the lawsuit notice was not properly and personally served, or was served with publication, it may end up becoming a worthless judgment. Before investing significant money recovering a default judgment having non-perfect proof of service, fix the proof of service. http://www.JudgmentBuy.com - Judgment Enforcement - the fastest and best way to get money for your judgment. Mark D. Shapiro, the expert on judgments. I pay for leads, and offer the best quality free leads for enforcers, collection agencies, and contingency collection lawyers.
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assignees of record, causes of action, judgment assignment, judgment enforcement, judgment enforcers,
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