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

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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

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 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.

 


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