What is the worst case scenario for my judgment recovery?
A2. Worst Case Scenario 1: The defendant could file a Chapter 7 bankruptcy. In that case, we cannot collect for you. All funds will be frozen and we will have to return them. Worst Case Scenario 2: The defendant could file for a Chapter 11 bankruptcy. In that case, there’s still a chance. All funds will be frozen and we will have to return them. HOWEVER, the defendant will have to make arrangements to pay off their debts first; sometimes it can take over a 3 – 5 year period. We may not be able to collect every dollar of your judgment, but you’ll get somewhere around 20% on the dollar. Worst Case Scenario 3: The defendant is having financial problems and files “Claim of Exemption.” This has to go through the courts first for review. If the court accepts the claim, then we would have to do a payment plan. At least we get some money.
