Can a third party creditor buy a judgment fromthe initial creditor and act on the judgment?

UPDATED: Jan 5, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Jan 5, 2012Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a third party creditor buy a judgment fromthe initial creditor and act on the judgment?

Company A sued me and got a judgment on me, they tried to garnish wages but lost my job and am currently unemployed. After all this garnishment attempts Company A sold my debt to a private debt collections agency B. Can company B continue to file garnishments on A’s original judgment. And can they intercept taxes when I file this year? Neither company is associated with a government agency.

Asked on January 5, 2012 under Bankruptcy Law, Oklahoma


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Unfortunately for you, a third party debt collection company can and usually does buy judgments held by a judgment creditor at a discounted price and then attempts to collect on them to make money on the transaction. It happens all the time.

The third party collection company receives an assignment of the judgment and then can and very likely will try to levy upon the judgment debtor's assets and garnish his or her wages to satisfy the judgment that has been transferred. There is nothing illegal about the process assuming the judgment has been validly purchased.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption