Key Facts

• A court judgment for unpaid debt can remain valid for many years, allowing ongoing collection efforts.
• The original creditor does not always handle the debt for its entire duration; debts often change hands.
• When a judgment is sold, the new owner inherits the right to collect the remaining debt.
• Legal steps, like filing an assignment of judgment, may be required for the new owner to enforce collection.
• Federal rules require debt collectors to provide information about the debt, including the creditor’s name and amount owed.
• Debtors can request more details or dispute the debt if information from the collector doesn’t match their records.
• The time a judgment remains enforceable depends on state laws and is not automatically extended when the judgment is sold.
• After a judgment is sold, debtors might be able to negotiate a payment plan or settle for less than the full amount.