Without a doubt, there is over two trillion dollars in “bad debt” in the United States right now by many accounts. The numbers are staggering. A common question that comes to mind is: Can there really be that many delinquent debtors in America? The realistic answer to that question is a resounding NO.
Most debtors who have had money judgments entered against them are not “bad” or “delinquent” at all. Almost everyone has a certain amount of debt, whether large or small, at all times. Unfortunately, circumstances can change in an instant to derail the best laid plans and cause bad debt and lawsuits.
Don’t be surprised if your neighbor, friend, or relative next door has had the misfortune of a money judgment. Extended periods of unemployment totally out of a person’s control can lead to bad debt. Medical expenses are another important factor in the lawsuits that are required. Both of these factors are beyond the control of normal people and are largely unpredictable. Misfortune does not make you bad or lazy.
Think of many other people who simply make poor decisions over time and eventually find themselves overwhelmed by their dead-end debt. Some financial balancing acts go on for years and years before the financial house collapses. Bad decisions can be the product of a lack of knowledge, overconfidence or simple denial. There are so many people who live in the present and short-term view that they have no idea of the long-term consequences of incurring bad debts and lawsuits. There aren’t many “bad” or lazy people in this category yet.
Admittedly, there is a percentage – five to fifteen percent of debtors who are genuinely delinquent with no intention of paying a single penny of the debt they have created. They will have no job, no assets, and no desire to be held accountable for their actions. This group hurts truly honest people who love and will eventually pay off their debts because it’s so easy to stereotype all debtors as worthless. Don’t fall into that trap.
Most debtors are just like you, except that they have experienced something that has caused them financial problems. They are working through the barricades. They will get back on their feet. They will pay all the debts they are responsible for creating to the best of their ability. These people can be the solid foundation of a lucrative judgment recovery business.
In Real Estate, the mantra is: “Location. Location. Location.” In Judgment Recovery, the mantra is: “Time. Time. Time.” If you treat your debtors with empathy, courtesy, dignity, and respect, you will be very successful in the bankruptcy recovery industry. Treat people how you want to be treated. Work with the knowledge that everyone is just one disaster or unforeseen circumstance away from finding themselves mired in bad debt.