Legal Question in Credit and Debt Law in Virginia

Judgment Recovery Unauthorized Practice of Law

I have read an Amendment to the Rules of Court: Unauthorized Practice ... I am starting a judgment recovery business This opinion states that we are unable to use the ''contigency'' method of enforcing judgments although with an Acknowledgment of Assignment of judgment, in the eyes of the law (or so we believed), we would become the new judgment creditors attempting to enforce a judgment against a debtor.

I have put together agreement signed between both the previous judgment creditor and me

Which states the following

Consideration and Financing - As consideration for this sale ASSIGNEE/BUYER promises to perform to the best of its ability to enforce and collect the herein referenced judgment, and to pay $xxxxx. Payments for this judgment shall be made in irregular installments. ASSIGNEE/BUYER reserves the right to make, at its discretion, installment payments at any time prior to the due date, as described herein. Installment payments on the judgment shall be timed to, and therefore become due, upon the completion of an enforcement procedure on the judgment for which payment applies. Payment shall be disbursed within ninety (90) days of due date.

Since I am purchasing judgment would it still be a UPL issue?

Thank you


Asked on 11/29/07, 1:02 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Judgment Recovery Unauthorized Practice of Law

Without having read the amendment to which you've referred, your proposed arrangement still looks like UPL(unauthorized practice of law)to me, since you have not purchased the delinquent accounts outright (with the absolute enforcement rights which go with such ownership) and would seem to be paying for them on a contingency fee basis, i.e, when they're collected on, which is an arrangement which many collection attorneys use in their respective practices.

Bottom line assessment: Under this proposed arrangement, you're practicing law, apparently, without a license to do so, and attempting to cloak it in language to make it appear otherwise will not change the essential nature of the transaction/activity involved.

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Answered on 11/30/07, 6:50 am


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