Thank you for using JustAnswer. I am researching your issue and will respond shortly.
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.
Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, XXXXX XXXXX luck to you!
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!
My pleasure.If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, XXXXX XXXXX good luck to you!
Did you have any other questions before you rate this answer?
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).