A chose in action is essentially a right to sue. It is an intangible personal property right recognized and protected by the law, that has no existence apart from the recognition given by the law, and that confers no present possession of a tangible ob
Title: Understanding Michigan Assignment of Money Judgment: A Comprehensive Overview Introduction: The Michigan Assignment of Money Judgment is a legal process that allows a person or entity, known as the assignor, to transfer their rights and interests in a money judgment to another person or entity, referred to as the assignee. This financial transaction serves several purposes, enabling assignors to collect their owed debts efficiently, while providing assignees with an avenue to invest in potential future financial gains. Within Michigan, there are different types of Assignment of Money Judgment that individuals should be aware of. 1. Voluntary Assignment of Money Judgment: The voluntary assignment occurs when the judgment creditor willingly transfers their rights to another party, typically for a negotiated amount of immediate money or other financial considerations. This type of assignment allows the creditor to promptly receive funds instead of waiting for the debtor to fulfill the judgment. 2. Assignment for Collection: In some cases, judgment creditors may assign their money judgment rights to a collection agency, attorney, or debt collection company. This type of assignment aims to leverage the expertise and resources of these specialized entities to recover the debt on their behalf. The assignee typically takes on the responsibility of pursuing the debtor, seeking payment, and facilitating the collection process. 3. Assignment for Investment: Assignors may choose to assign their money judgment rights to investors or entities seeking potential returns on such investments. Investors who believe in the merit of the judgment can provide assignors with immediate cash in exchange for the right to collect the judgment amount from the debtor. The assignee then assumes the risk and responsibility of recovering the judgment, potentially receiving a profit if successful. How does Michigan Assignment of Money Judgment work? In Michigan, the process of assigning a money judgment involves several steps: 1. Drafting an Assignment Agreement: Assignors and assignees must enter into a written agreement that clearly defines the terms and conditions of the assignment, including the assigned judgment amount, payment terms, and any rights or obligations involved. 2. Filing the Assignment: Once the assignment agreement is executed, it needs to be filed with the court where the initial judgment was entered. By recording the assignment, it becomes publicly recorded and legally binding. 3. Notice to Debtors: Assignors or assignees must serve a notice of assignment to the debtor, informing them of the change in ownership of the judgment, and providing new instructions for payment. This notice ensures debtors know where to direct their payments. 4. Collection and Enforcement: The assignee becomes responsible for collecting the debt from the debtor. They may employ various legal tactics to enforce the judgment, such as wage garnishments, property liens, or bank levies, depending on the circumstances and the debtor's ability to pay. Conclusion: The Michigan Assignment of Money Judgment serves as a crucial mechanism for both creditors and debtors. It offers assignors a way to promptly recover the money they are owed, while enabling assignees to invest in potential financial returns. Understanding the various types of assignments and the process involved can help individuals navigate this legal tool effectively, benefiting all parties involved.
