The judgment recovery profession is being scrutinized by growing numbers of entrepreneurs looking to establish a lucrative and highly rewarding business. Collection and recovery businesses are starting up every day. There are four main reasons for the amazing growth the judgment recovery industry is experiencing.
1. Courts are being flooded with new civil lawsuits.
2. The working population is not quitting and/or changing jobs at this time.
3. Consumers are becoming educated and informed about having good credit.
4. Judgment debtors are NOT quitting their jobs because of wage garnishments.
Each reason will be examined more closely.
Civil Lawsuits Increasing in State Courts
State courts are where approximately 95 percent of all litigation in the United States takes place. The National Center for State Courts (NCSC) reports 106 million cases filed in 2008. Prior figures from the last reporting date of 1999 were 12 percent lower. Cases are on the rise and especially civil litigation. The poor economy has caused civil cases to increase 29 percent from 1999 to 2008 to a whopping 1.3 million cases.
The implications for the judgment recovery industry are obvious. Inventory which equates to real dollars is skyrocketing upwards. The well is spilling over instead of drying out. If there is one leading indicator of when to get into the judgment recovery business, then this is it.
Working Population More Stable Than Ever
A recent Gallup poll estimates that unemployment in the United States is at 10.3 percent. Many other estimates place unemployment slightly below or above the 10 percent mark. These figures are alarming, especially for those people unfortunate enough to find themselves in the ranks of the unemployed, but are not the important news for judgment recovery professionals.
The population still at work is fighting hard to maintain the status of their jobs. The key status is currently employed. Research indicates that the working population is not quitting their jobs at this time. Trending, also, reveals that employed persons are changing jobs less frequently than in years past. Working individuals have money to pay their judgments, or at the very least, provide the opportunity for wage garnishment to recover judgments.
Consumer Education on Good Credit Grows
The necessity for obtaining a good credit status has always been around. Consumers of say ten years ago largely had vague ideas about the importance of maintaining a good credit history. In today’s world, consumers have been educated to the point of bombardment about the pitfalls of allowing credit status to deteriorate or be destroyed. If you don’t think consumers are using their knowledge to improve their credit score, do a quick search to see how many “credit repair” companies you can find.
Consumer concern about their credit status is a strong leverage point in the judgment recovery industry. Judgments are derogatory items on a credit report that can affect a person’s ability to get a loan. With the housing market now turning to a buyer’s market, getting credit into good standing is imperative. Clearing any outstanding judgment is a positive step so a good judgment recovery business can even be seen as a helpful entity to consumers.
Judgment Debtors Not Quitting Jobs because of Wage Garnishment
Wage garnishment is never pleasant for any judgment debtor that has to experience it. However, because there is not a plethora of jobs out there, they just cannot afford to quit their jobs if wage garnishment occurs. This is a vastly different scenario than when jobs were plentiful and it was easy to hop from job to job.
Wage garnishment is an effective tool that can be utilized in the judgment recovery industry to insure a steady cash flow. Judgment recovery professionals can be assured now more than ever that money will be available to recover judgments.
Before you jump into the business, you should obtain all the knowledge and skills that you can. You should seek out good solid training and education. The judgment recovery institute is a perfect source to help you further your knowledge and professionalism. Nothing is stopping you from earning while you are learning. Grab the opportunity to learn fast, to learn well, and to begin earning now. There is only one thing left to say about the judgment recovery industry.