8 votes

just got a judgment

I would like some advice if anyone thinks they can be helpful.

I just received a judgment from a lawsuit stemming from an investment that turned into a Ponzi scheme and i'm not sure what to do.

Just before the real estate bubble burst, I was able to buy and sell a few houses in san diego county. I was accumulating a fair amount of cash doing this. I had a feeling, based on interest rates inching up and the fact that people were having a hard time refinancing, that I didn't want to keep putting my cash into more real estate because I didn't think there was much more upside in the market at the time.

I decided to make a short term loan to a local fund that was supposed to be backed by some assets that had low loan to value ratios. As the market started to sour, the fund manager began paying dividends and other payments using money from the fund. Eventually, the whole thing turned into a Ponzi scheme and by the time that a bunch of other investors forced the fund into bankruptcy court, most of the money had vanished.

I sued separately and got a judgment against the fund which was an LLC. the bankruptcy took several years, and there were few assets left and my part of the bankruptcy settlement was about 1% of what I was owed. The bankruptcy court ruled that the manager defrauded the investors and that the debts were not dischargeable. That left the door for me to go after the manager personally, which I did.

It's been about 6 years since the whole thing started, and I finally won a judgment against the manager for just under a half a million dollars. As many of you may know, winning a judgment is a lot different than being able to collect on it.

The individual that owes me the money claims to not have any money or assets and is "barely making a living" as a real estate agent. I was wondering if any of you have any good advice on how to go about collecting at least some of what is owed me without having to put out a bunch of money for more lawyers and such?

Thanks for taking the time to read about my personal little conundrum.

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gaylbaby's picture

Don't we all!

Perfect! LOL!

Sorry, I don't get it. :-(

I'd suggest:

1) Join their travels;

2) Finance Sheriff Mack, Ben Swann, and Daily Paul;

3) Put a security freeze on your name and ss#/tin with the credit bureaus, SSA, IRS, and banks/financial institutions;

4) Notify the police, FBI, DOJ, Attorneys General, SOS/Corporation Commission, BBB, and Financial/Bank Regulatory Agencies over said lenders and request help;

5) See if your homeowner or rental insurance covers ID Theft and let them pursue for you; otherwise join "All Clear ID" for help;

6) Hire your own PI or Liam Neeson as "Bryan Mills", retired CIA Agent in "Taken", to hunt them down and 'see #1' or take care of them;

7) "What do you do?" (movie tagline) Shoot'em in the leg like Keanu Reeves character did in "Speed";

8) Temporarily go to jail to prove it can't be you if you're locked up - get a forgery expert.

I like 1 and 2! ;) (or Take Richard, Ben, and Michael with you.)

Not sure what to do to collect but I have advise of what NOT

to do: Don't hold your breath.

we are

way past that point. if nothing else, I would like to make his life as miserable as possible.

Ideas

1) Keep your judgment active as long as legally possible, and re-new it as needed until you collect. (Don't give to collection agency; but maybe consider selling it to third party for 50%+ of value, if no better options.) Don't forget to accrue interest on and add expenses onto debt/judgment and let person know so they have motivation to pay you off sooner.

2) Check and keep checking all public records on individual and entities for property, assets, and licenses to 'attach'(in all states person associated). Attach licenses and person cannot work 'til pays you. (motivation to pay you or work out deal)

3) Have a court clerk help you use the 'discovery' process to have all assets and income disclosed to you and keep you updated or s/he gets fined/jailed. Get all TIN's and SS#s, and legal permission to run credit reports and order copies of tax returns from IRS (to disclose assets, jobs, etc.)

4) Attach spousal property if in community property state and it applies.

5) Pursue criminal charges. Usually they borrow the money to pay you off rather than go to jail.

6) Garnishee wages, other income, investment dividends, life insurance, tax refunds, etc.

7) Barter their services in lieu of payment. Or agree to a payment schedule with interest.

8) Other stuff, if you're really angry and they have no remorse. (Like force sale of personal belongings and vehicle.)

Contact me if you need more info, ideas, or assistance.

Thought of some more:

9) Check into insurance claims on insuring entities - ex. title insurance, bonding company for license(s), state protection funds(also city, county), FINRA, SIPC, professional associations, state regulatory agencies, etc. (ask them for tips, too)

10) Report claim to credit bureaus, bbb, and county records - 'notice' limits their financial and work activities and options (motivation to pay you or work out deal), puts you in first place to collect.

11) Deduct as loss on federal and state income tax returns for many years once you decide it's uncollectable. (confirm time allowances for determining and deducting.) Deduct losses and expenses not awarded in judgment.

Check legalities of these for your situation and state(s) located.

(Just ideas. I'm not saying I would personally do all or any of these things.)

all good advice.

i would sell it for 50% in a second if there was someone willing to buy it. i would actually take a lot less. especially if i knew that the people that bought it would hound him to the gates of hell to get a good return on their investment.

i need to have it recorded with the county, then i can check into selling the judgment. i am told i would be lucky to get less than 10% for it. i have been told that collection agencies will do the collecting for 50% of what is collected, but i am not sure how tenacious they would be or how affective it would be.

LOL! You should contact me privately....

I can be a tenacious hounder when necessary. ;)

Sincerely, I may be able to help you at no charge (or for donations to DP and a few others.)

I think I can find out a lot in 1-3 hrs.

I don't like the 10% figure or going with a collection agency.
You need a specialist to help you or sell to. Don't give up so quickly unless you have a serious reason.

I'm willing to help you find what you need.

Truth and Goodness shall prevail! ;)

GO, PATRIOTS! :)

how can i contact

you privately? I would gladly donate some of the proceeds to liberty causes.

Very Good Answers.

Except with #5, it is probably too late to get a prosecutor to act. And, at least in IN, if a civil judgment proceeds a criminal judgment, the criminal judgment will not include compensation. Also, if the OP did have info on criminal activity and offered to remain silent for compensation, that is extortion and the OP might face felony charges.

I do assume that the OP does not live in Indiana because we have a unique system to encourage payment of debts which has been misrepresented as debtor's prison. After a civil judgment, the creditor files, at no charge, a Proceedings Supplemental which calls a hearing to question the debtor as to his income and assets and failure to pay. The judge will usually offer a payment plan and get both parties to agree to it. If the debtor does not show or after repeated failure to pay, the judge can issue a bench warrant in excess of the amount of debt.

Once arrested, the debtor can pay the bond and/or file bankruptcy or remain in jail. This is not debtor's prison because the debtor has an option of filing for reorganization or liquidation.

If he has a bank account

you should be able to garnish his wages, but you may have to hire an attorney to do so. I think that is about your only option at this point. He may jump his bank accounts around once he catches on, so you are gonna have to stay on him. One problem could be if he realizes this and is cashing his checks at check cashing place or something. Good luck.

Those who expect to reap the blessings of freedom must. like men, undergo the fatigue of supporting it.-Thomas Paine

The R3volution requires action, not observation!!!!

Ah, the ol' judgment proof

Ah, the ol' judgment proof problem.

I don't have the answer for you, but I hope someone does. I'm interested in learning about this too.

Best of luck to you.

thanks

if nothing else, I hope I can get some collection agency to hound his ass until he dies.