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If you're going to be going after a receivable or debt owed to him, and you're in Massachusetts, you're going to need to be a registered debt collection agency. See the laws here: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/Chapter93/Section24
So for you to act as the agent for your friend to do this, you would have to be a licensed debt collector. But you can purchase this debt, even for a contingent amount. http://www.uslegalforms.com/us/US-00469.htm
The link would be an assignment form that you could use.
Without becoming a debt collector yourself, the assignment of contract form would be your best (and possibly only) way of being able to do this.
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Ok so if the total outstanding debt owed to my friend is $420k then I could offer my friend say $20k to buy this debt?
You could certainly do that.
Basically it's up to you and your friend for a private transaction, as to the valuation of the debt, etc...
Could I also offer him a percentage of what I receive? i.e. I'll give you $1.00 now and 50% when I settle with the company?
ok I assume yes based on your last answer
Instead of making it a percentage (which would indicate ownership and/or control), I would suggest a staggered "contingent" formula.
That is, if you recover between $50,000 and $75,000, he gets $30,000, if you get between $75,000 and $100,000, he gets $65,000 (or something like that).
Again, since it's not a set percentage, it would be easier to say that you were the owner and in complete control of the negotiations, etc...
And that should be reflected in the sales price in the assignment of contract (or at least a separate appendix as to how any additional future compensation due him would be calculated)
ok I see. Thanks for your help!
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