	Article Directory		Article Submission Service		Article Marketing Blog		Publishers		Member Log In

Article Directory :: Legal Articles

Assignees And Causes Of Action

By Mark Shapiro

Republish: EasyPublish™
Published: 17Mar2012
Word count: 892
Viewed: 46 time(s)

Get Free Content For Your Site

I'm not an attorney, I am a judgment expert. This article is my opinion, from my California experiences. Laws are different in every state. If you ever want a strategy to use or legal advice, please contact an attorney.

During bad economic times, debtors become more tempted to use possible "loopholes with proof of service" created with default judgments. Certain debtors try to assert they weren't properly served, even when they really were, and attempt to set aside a default judgment against them. If you're thinking about becoming the assignee, carefully inspect to the proof of service.

If a default judgment is set aside (vacated), that's not good news for the OJC (Original Judgment Creditor). When a judgment gets set aside, the OJC gets the choice of suing the judgment debtor yet again and potentially winning another judgment.

If judgments are assigned, the causes of actions for judgments do not move to the assignee. The assignee hasn't any recourse when the judgment debtors tries appeal or vacate that judgment. Also, the assignee has no standing if the county recorder or a court clerk makes an error, that thwarts the lien from attaching to a debtor's real estate.

If default judgments are set aside, it's most often depressing for the assignee, as the causes of actions are gone, which means that judgment now is worth nothing, and a assignee loses whatever they paid attempting to enforce that judgment.

When a judgment was a default, doesn't mean it won't be recovered. However, a default judgment is not as strong as non-default judgments. In certain states, as an example New York, default judgments need another case file, and prevailing in another court lawsuit to get domesticated in New York.

There are methods to fix marginal proofs of service for judgments by default. One method is to get the debtor personally served anything judgment related (paying a Sheriff or a registered process server), then wait 6 months; and then a debtor won't be able to claim successfully they didn't learn about their judgment. When one does this, all matters related to the proof of service of a lawsuit not getting served on a debtor properly, disappears.

Certain judgment recovery specialists use judgment purchase agreements that insist OJCs to pay them something if a judgment gets appealed, vacated, or when a debtor successfully gets protection by going bankrupt. Many OJCs don't like those kind of policies, and find other judgment recovery specialists having agreements which don't require a reimbursement under such conditions.

One can see the issue both ways. If judgments get set aside because of a defective proof of service, the judgment recovery specialist gets burned because the OJC didn't make sure to have the debtor served personally by a Sheriff or a registered process server.

When the lawsuit notice wasn't personally and properly served, or got served with publication, it may end up becoming a worthless judgment. Before investing significant cash enforcing in default judgments with non-perfect proof of service, fix the proof of service.

http://www.JudgmentBuy.com - Judgment Enforcement - the best and fastest way to get paid for a judgment. Mark Shapiro, a expert on judgments. We pay for leads, and offer the best no obligation free leads for collection agencies, enforcers, and contingency collection lawyers.

EasyPublish™ this article - publishers click here