How to Sell Your Judgment:
A Comprehensive Guide

(Updated for 2025)

Congratulations! You’ve won your court judgment, ordering the debtor to pay you. But the big question remains: how and when will you actually get paid? Many creditors feel like they’ve won the battle, only to realize that collecting the judgment is a whole new war. If you’re wondering, “Can I sell my judgment for cash?” the answer is yes—and this guide will show you how.

The Challenge of Collecting a Judgment

Winning a lawsuit doesn’t guarantee you’ll see the money you’re owed. As the judgment creditor, it’s your responsibility to navigate the legal process and compel the debtor to pay. This means you need a solid collection plan, which can be complex and time-consuming. It hinges on the debtor’s assets, and you might encounter numerous obstacles along the way.

Selling Your Judgment: A Faster Solution

If you’d rather avoid the complexities of judgment collection, selling your judgment is a viable option. However, not all judgment collection agencies are created equal. Some offer immediate payment, while others only pay after successfully collecting from the debtor. In California, some agencies specialize in upfront payments, which can provide you with immediate cash for your judgment.

Can You Sell a Judgment for Cash?

Yes, you can legally sell any judgment, including civil, labor board, or probate judgments. When you sell, you transfer all enforcement responsibilities to the buyer, who becomes the new judgment creditor. This means you’re no longer involved in the collection process and have no further liability..

The Catch: Discounted Value

Keep in mind that you won’t receive the full judgment amount when you sell it. Collection companies need to profit, so they’ll pay you a percentage of the total—sometimes a small fraction. The value of your judgment depends on factors like:

Type of Judgment: Default judgments are generally worth less.
Amount of the Debt: Larger judgments may be more attractive.
Debtor's Financial Status: A debtor with assets increases the judgment’s value.

Is Selling Your Judgment Legal?

Absolutely! You can sell any judgment just like any other personal property. This includes civil judgments, labor board judgments, divorce decree judgments, probate judgments, and bankruptcy court judgments. When you sell, you relinquish all involvement in the lawsuit. The buyer steps into your shoes as the new judgment creditor.

You have no further involvement or liability for their actions. Many judgment enforcers include indemnification clauses in their purchase agreements for added protection.

If you want to avoid the pitfalls of judgment collection, selling for cash is a viable and legal option.

How Much Can You Get for Your Judgment?

Most sellers hope for more than their judgments are actually worth. While every judgment is unique, here are some general guidelines to estimate its potential value:

Debtor with No Assets: If the debtor has no visible assets or cash, collection is unlikely, and you shouldn't expect a cash offer.
Debtor with a Job and No Bankruptcies: You might be able to sell, but expect only pennies on the dollar. A collection agency that pays after collection might be a better fit.
Debtor with Real Estate Equity: This is your best chance for a cash offer. The buyer will assess the equity, subtract enforcement costs and a margin for error, and then make an offer.

Cash offers can range from pennies on the dollar to up to 20% of the original judgment amount, depending on the abovese factors. Be wary of buyers claiming to pay over 20%; they likely require intensive due diligence before making an offer.

Why Are Judgments Often Worth So Little?

Judgments can sell for pennies on the dollar due to:

Debtor Bankruptcy: Bankruptcy significantly reduces collection chances.
Lack of Assets: No assets mean no way to recover the debt.
Other Judgments: Existing judgments against the debtor reduce the likelihood of collecting on yours.
Default Judgment: These can be easily challenged and overturned.

Maximizing the Value of Your Judgment

Know Your Debtor: The more information you have, the better. Names, aliases, addresses, age, SSN, employment, relatives, assets, and business ownership all increase value.
Be Patient: Collection can take time, and patience can maximize value.
Consider a Collection Agency: They can increase your chances of a faster recovery.
Compare Offers: Get quotes from multiple companies and negotiate for the best price.

How to Sell Your Judgment for Cash: The Process

Selling your judgment for cash offers the quickest way to recover your debt. Suing the debtor can be a waste of time, even if you win the case. The courts offer little help in recovering your debt.

Selling to a judgment collection agency is a straightforward process, whether they pay on a contingency basis or offer cash upfront: The buyer will send you one-page documents to sign and return, along with a check if you're selling for cash. Simply sign and cash the check.

How to Sell Your Judgment to a Collection Agency: A Summary
If you’ve won a judgment but want to avoid the collection process, selling it to a collection agency is an option. Start by researching potential buyers and comparing their cash offers. Once you’ve chosen a buyer, assign your judgment to them for the agreed amount.

Ensure all terms are documented, signed by both parties, and fully understood. After the agreement, exchange the judgment for the payment.

With this guide, you can confidently sell your judgment to the right buyer and recover your funds quickly. Hopefully, this has answered your question: "Can I sell my judgment?"

Where to Sell Your Judgment

The difficulty of collecting judgments has created an industry around buying and selling them. Selling offers faster access to your money than pursuing legal collection, which is especially helpful if you're in a financial bind.

You can find numerous judgment collection agencies online or list your judgment on a judgment marketplace.

How to Sell a Court Judgment: Step-by-Step

Selling a judgment involves these steps:

Listing: List your judgment on a marketplace.
Offers: Interested buyers will submit offers.
Review: Review the offers and choose the most favorable.
Negotiation: Contact the chosen buyers and negotiate the terms.

Negotiation Tip: Be firm and only accept offers that you consider fair. Buyers want to minimize their costs.

Once you reach a deal, complete the purchase and sale process through the website.

Why Would I want to sell my Labor Board Judgment?

Labor board judgments can be collected just like any other judgment. Many creditors choose to have the Labor Board Judgment Enforcement Unit (JEU) enforce their judgment. Unfortunately the JEU is understaffed and unlikely to spend time actively enforcing your judgment. If you want speedy results, selling your judgment is a better option.

Selling a Labor Board Judgment

Can you recover a labor board judgment? It depends on your previous employer's financial situation.

You might not be able to collect if:

The employer went out of business.
The employer declared bankruptcy.
The labor board didn't hold the business owners liable.

Selling your judgment is often the only way to recover your debt in these situations. A buyer will research the judgment and make you a cash offer.

How to Sell a Labor Board Award

To sell a labor board award, first assess your former employer’s financial situation. If they’ve declared bankruptcy or the business is defunct, a sale is unlikely. However, if the employer has assets, selling the judgment becomes more feasible.

Labor awards are filed in civil court as judgfments. In California, Labor Board Code 1194.3 allows recovery of attorney fees spent enforcing the judgment, but only from the company, not its owners.

To sell your labor judgment, consider working with a reputable collection agent or listing it on a judgment marketplace. Research buyers carefully and negotiate terms to maximize your return.

How to Sell Your Judgment: A Comprehensive Guide