What happens if a creditor gets a judgment but chooses to sell the judgment amount to second creditor?
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What happens if a creditor gets a judgment but chooses to sell the judgment amount to second creditor?
The first creditor was a furniture store that didn’t garnish wages or levy a bank account but sold the debt. Can the new creditor use that judgment with the first creditor to garnish wages or levy debtor’s bank account?
Asked on July 9, 2012 under Bankruptcy Law, California
Answers:
Cameron Norris, Esq. / Law Office of Gary W. Norris
Answered 12 years ago | Contributor
Yes. Judgment holders/creditors can sell their judgement to an assignee. That Assignee now is your new creditor. They have all the rights to collect that the furniture store had. The law is pretty rediculous in this area, as your defenses against the assignee are even less than those against the original creditor. The new creditor can get a writ of execution to garnish wages or levy bank accounts.
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