Image source: http://www.bikeleague.org/sites/default/files/Screen%20Shot%202015-01-21%20at%2011.25.39%20AM_0.png
This article is a general guide. Laws change often. This is not a substitution for researching and keeping current with the laws of your state. While it is legal to enforce judgments in all 50 states, some states make it harder than it should be.
In the beginning, it was one's right to purchase a judgment and enforce it. Over time, government and legal organizations in some states, (usually a Bar Association) have or soon may try to, put restrictions on the rights of people (who are not a lawyers) to enforce a judgment.
The future-pay purchase method is when the judgment enforcer pays the original judgment creditor 35 to 70 percent of the amount recovered from the debtor.
The future-pay purchase is usually best for the original judgment creditor because they get 35 to 70% of the amount recovered from the debtor. In contrast, judgments purchased for cash up-front have average sale prices of 1% to 7% of the face value of the judgment.
Some states do not allow the standard future-pay purchase method. Such states have specified that judgments must be purchased outright with no continuing obligation. Other states have mandated that only a collection agency can enforce judgments for others.
In some states, instead of passing laws, there are "only" strong opinions of high-ranking legal organizations. Even if only an opinion, in courts, these opinions can affect the rights of judgment enforcers.
If you enforce judgments, you must check the laws of your own state. With that said, here is a general summary of the laws that impact how judgment enforcers must work in each state:
Alabama, Alaska, Arkansas and California: No special restrictions.
Arizona and Colorado: To recover judgments, you should be a licensed as collection agency.
Connecticut and Delaware: No special restrictions.
District Of Columbia: Government employees are not attachable. (The Feds protect their own.)
Florida: The opinion of the Florida Department of Banking and Finance is that to recover judgments, you should be a licensed as collection agency. But the Bar, and Florida state law, does not mandate this.
Georgia: No special restrictions.
Hawaii: Assignees Of Record cannot domesticate judgments into this state.
Idaho: To recover judgments, you should be a licensed as collection agency.
Illinois and Indiana: No special restrictions.
Iowa: The Iowa Bar Association says judgments must be purchased for cash up-front.
Kansas: Wage garnishments are not allowed by Assignees.
Kentucky: This state is Judgment Enforcer friendly.
Louisiana and Maine: No special restrictions.
Maryland: The Maryland Department of Labor, Licensing and Regulation says judgments must be purchased for cash up-front.
Massachusetts: No special restrictions.
Michigan: Small claims judgments cannot be assigned.
Minnesota: The Minnesota Department of Commerce says that you must either buy judgments for cash up front or be a licensed as collection agency.
Mississippi: No special restrictions.
Missouri: Small Claims judgments (3K and less) in this state cannot be Assigned. This might be raised to 5K soon.
Montana and Nebraska: No special restrictions.
Nevada: The Bar Association of Nevada says to recover judgments, you should be a licensed as collection agency.
New Hampshire: No special restrictions.
New Jersey: The Bar Association of New Jersey says judgments must be purchased for cash up-front.
New Mexico and New York: No special restrictions.
North Carolina: Wage Garnishments generally not allowed.
North Dakota, Ohio, Oklahoma and Oregon: No special restrictions.
Pennsylvania: Wage Garnishments generally not allowed.
Puerto Rico and Rhode Island: No special restrictions.
South Carolina: Wage Garnishments generally not allowed.
South Dakota and Tennessee: No special restrictions.
Texas: Wage Garnishments generally not allowed.
Utah, and Vermont: No special restrictions.
Virginia: The Bar Association of Virginia says judgments must be purchased for cash up-front.
Washington and West Virginia: No special restrictions.
Wisconsin: The Wisconsin Department of Financial Institutions says to enforce judgments you must be a licensed as collection agency.
Wyoming: No special restrictions.
