Can a debt collector sell a judgment to another debt collector?
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TL;DR
- A court judgment grants collectors powerful collection methods like wage garnishment, bank levies, or property liens.
- Debt judgments can remain enforceable for many years, and the original creditor may sell the judgment to another company.
- When a judgment is sold, the new owner assumes the previous creditor's rights and can use existing collection remedies.
- Debt collectors must provide validation information, and debtors should verify the new collector's authority, the debt amount, and the judgment's status.
- A judgment sale generally does not renew the judgment's enforceability period.
- Settling a debt-related judgment after it's sold may be possible, but negotiation leverage can be different than before a lawsuit.
- Debt relief companies or consumer law attorneys can offer guidance, but confirm they handle post-judgment debts.