The economic downturn means many are looking for alternative income sources. Many attorneys are also looking for new income sources. Most civil attorneys make money winning judgments. Every year more and more lawyers are also starting to enforce judgments to increase their income.
Anyone that recovers judgments needs to find judgment leads. Anyone that recovers judgments must also turn away judgments not right for them, for example when the debtors are too far away, in another state or country, or when there are insufficient assets showing, etc.
Most people with judgments would prefer a contingency attorney to enforce their judgment, because most have already paid a lot to win and keep their judgment, and don't want to pay more for a retainer or by the hour. Most lawyers will only enforce a judgment on contingency when the debtor has sufficient assets available to satisfy the judgment. Generally, lawyers can only pay other lawyers for client leads, and cannot pay anyone else (who is not a lawyer) for leads. Lawyers can refer leads to anyone and get paid. How can lawyers compensate a (non-attorney) judgment lead provider? Most cannot, but the attorney's clients can. This makes sense when the lead provider is a Judgment Broker that finds the best contingency collections lawyer for the judgment owner, who may later become a client of the referred attorney in a one-time arms-length referral transaction.
A Judgment Broker makes money by helping judgment owners find the right contingency lawyer. A Judgment Broker gets paid only if and when money is recovered on the judgment. The way that a Judgment Broker helps contingency lawyers find judgments, and judgment creditors find the right contingency attorney is:
1) The judgment owner sends a copy of their judgment and what they know about the debtor to the Judgment Broker.
2) The Judgment Broker screens the debtor for bankruptcy, makes sure the debtor can be found, and appears to have current or future assets.
3) The Judgment Broker finds the best contingency collections attorney for the judgment situation. The attorney signs a one-time, simple attorney-approved contract with the Judgment Broker, and agrees to reduce their contingency fees, for each referred judgment lead. The lawyer gets free judgment leads matched to their location and preferences.
If the lawyer accepts the judgment lead, they agree to discount their contingency fee by 10%. For example instead of 50%, they charge 45% to the client. The client sends the extra 5% they may get upon a successful recovery to the Judgment Broker.
4) The Judgment Broker contacts the judgment owner, and has the judgment creditor sign a simple one-time agreement, to send any extra money they may get because of the discount from the referred contingency lawyer. The judgment creditor gets the best possible chance of recovering money on their judgment, at no extra cost.
5) The Judgment Broker refers the judgment creditor to the attorney and is no longer involved, except to be notified if the judgment is enforced, and money is paid to the judgment creditor.
Judgment Brokers are good for attorneys when they have judgments that they need recovered, but don't have time to personally enforce. The lawyer can make money referring unwanted (or time consuming) judgments in an arms-length transaction, to a third-party Judgment Broker. Lawyers can also find judgments to recover from a broker. Judgment Brokers are good for judgment creditors because they find the right lawyer with no obligation, cost, or hassle.