Judgment Assignment

A judgment assignment is a legal document in which the holder of a judgment transfers their rights to that judgment to another party, known as the assignee. The assignment is made without recourse or guarantee of payment, meaning the assignee assumes the risk of collection. The judgment holder agrees to execute any further documents required to perfect the assignment.

In a judgment assignment, 'without recourse' means that the assignee accepts the judgment without any guarantee of payment from the judgment holder. The judgment holder is not responsible if the assignee is unable to collect the judgment. This shifts the risk of non-payment entirely to the assignee.

A judgment holder might assign a judgment to another party for various strategic reasons, such as avoiding the effort of collection or obtaining immediate funds. The article does not specify the reasons but notes that the decision is tactical and based on the strategy between the judgment holder and the assignee. The assignee may have more resources or expertise to collect the judgment.

To complete a judgment assignment, you need the names of the judgment holder and assignee, the date the judgment was recovered, the court and case number, and the original principal amount of the judgment. The document also requires signatures and dates from both parties. Additional documents may be required to perfect the assignment.

The article recommends copying the party against whom the judgment is held to help promote collection. This is a tactical decision based on the strategy between the judgment holder and the new assignee. It is not a strict requirement but can be beneficial for collection efforts.

To perfect a judgment assignment means to take the necessary legal steps to make the assignment valid and enforceable against third parties. The judgment holder agrees to execute any further documents required to perfect the assignment. This may include filing the assignment with the court or other official actions.

Yes, a judgment assignment is a legally binding agreement between the judgment holder and the assignee, as long as it meets the necessary legal requirements. The document outlines the terms of the assignment, including the transfer of rights without recourse. Both parties must sign the agreement for it to be effective.

The assignee assumes the risk that the judgment may not be collectible, as the assignment is without recourse or guarantee of payment. The assignee cannot seek reimbursement from the judgment holder if collection efforts fail. The assignee should evaluate the debtor's ability to pay before accepting the assignment.

The article recommends making multiple copies for your records. This ensures that all parties have a copy and that there is a record of the assignment. It is a standard practice to keep copies for documentation and potential future needs.

The judgment holder agrees to execute any further documents required to perfect the assignment. If they fail to do so, the assignee may need to take legal action to compel compliance. The assignment itself may still be valid, but perfection may be necessary to enforce it against third parties.