Assignment of Judgment
Definition and meaning
An Assignment of Judgment is a legal document that transfers the rights to collect a judgment from one party, known as the assignor, to another party, known as the assignee. This document is particularly useful when the original judgment creditor wishes to delegate the responsibility for collection or when they want to sell the judgment to another party for various reasons, such as financial relief or investment opportunities.
How to complete a form
To complete an Assignment of Judgment form, follow these steps:
- Fill in your name and contact information as the assignor.
- Enter the name and contact information of the assignee.
- Specify the court where the judgment was issued and the date of the judgment.
- Include the name of the judgment debtor and the amount of the judgment.
- Sign and date the form before a notary public to officially execute the assignment.
Who should use this form
This form is ideal for individuals or businesses that have received a monetary judgment from a court and wish to transfer their rights to collect that judgment to another person or entity. It is especially useful for those who may not have the resources or desire to pursue collection on their own.
Key components of the form
The Assignment of Judgment form includes several critical components:
- Name of the Assignor: The original creditor who is transferring their rights.
- Name of the Assignee: The individual or entity receiving the rights to the judgment.
- Date of Judgment: The date when the original judgment was awarded.
- Amount of Judgment: The total amount due from the debtor, including any additional fees.
- Notary Public Signature: A mandatory part for validation of the document.
Legal use and context
An Assignment of Judgment is typically used within the legal framework of debt collection. When a court issues a judgment in favor of a creditor, that creditor can use an assignment to transfer their right to collect on that judgment. This form is commonly utilized in business transactions, as well as personal matters where creditors wish to seek assistance in collection efforts.
Common mistakes to avoid when using this form
When filling out an Assignment of Judgment form, avoid these common pitfalls:
- Failing to include complete and accurate information about both parties.
- Not specifying the correct amount of the judgment, including all applicable fees.
- Neglecting to sign the form in the presence of a notary public.
- Using outdated or incorrect forms, which may not be valid in your state.
What to expect during notarization or witnessing
During the notarization of an Assignment of Judgment, both parties will present valid identification to the notary public. The notary will confirm the identity of the signers, witness the signing of the document, and affix their seal to authenticate it. This process is crucial as it helps prevent fraud and ensures that the document is legally binding.
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FAQ
Assigning your judgment means that you forfeit ownership of your judgment permanently. It is a one-way sale that cannot be reversed except by finding and obtaining the cooperation of the person you assigned it to; or working and paying for a court order voiding the judgment assignment to them.
If a judgment is entered against you, a debt collector will have stronger tools, like garnishment, to collect the debt. A judgment is an official result of a lawsuit in court. In debt collection lawsuits, the judge may award the creditor or debt collector a judgment against you.
Do not use illegal ways to collect your money. Encourage the debtor to pay you voluntarily. Be organized. Ask a lawyer or collection agency for help. Make sure you renew your judgment. Ask the court for help.
Once a judgment is paid, whether in installments or a lump sum, a judgment creditor (the person who won the case) must acknowledge that the judgment has been paid by filing a Satisfaction of Judgment form with the court clerk.
Satisfied Judgments A satisfied judgment is the opposite of an unsatisfied judgment. It means that your debt is either paid or settled. While you may not have completely paid off your debt in full, you can satisfy a judgment by making a new payment plan and paying what you and the lender agreed on.
A Satisfaction of Judgment is a document signed by one party acknowledge receipt of the payment. The Satisfaction of Judgment is then filed with the court. This is beneficial to the paying party for multiple reasons. One, the court is put on notice that the debt has been satisfied.
Once a judgment is paid, whether in installments or a lump sum, a judgment creditor (the person who won the case) must acknowledge that the judgment has been paid by filing a Satisfaction of Judgment form with the court clerk.
It is divided into five types unlike judgement which is final in itself. A decree may be final or preliminary. It is a formal declaration or adjudication and is conclusive in nature. A decree is of three kinds namely, preliminary decree, final decree and partly preliminary & partly final.
What Happens After a Judgment Is Entered Against You? The court enters a judgment against you if your creditor wins their claim or you fail to show up to court. You should receive a notice of the judgment entry in the mail. The judgment creditor can then use that court judgment to try to collect money from you.
