As a judgment creditor with a money judgment in New York, you have options for collecting the money owed to you and satisfying the debt. If you know that a third party owes or will owe money to your judgment debtor, New York law provides for a “special proceeding”...
Judgments
What is judgment enforcement?
When a party is successful in a civil lawsuit, the court may award that party a judgment which states that the losing side owes the successful party a sum of money. Judgment enforcement is the legal process under which the winning party attempts to satisfy the...
Protecting Creditors Between Verdict and Judgment
At the conclusion of a typical lawsuit, a decision or verdict is rendered in favor of one party and against the other. If the plaintiff is the prevailing party, then the plaintiff will seek to enter a judgment against the defendant, at which point the plaintiff may...
Enforcing Judgments Via Restraining Notices
One of the most powerful tools in a judgment creditor's arsenal is the restraining notice. A restraining notice requires the party served to freeze any assets in its possession that belong or are owed to the debtor, and can be extremely effective when served to the...
How Can Courts Help Creditors Enforce Subpoenas?
Subpoenas are easily the most common means by which creditors seek to enforce judgments. Article 52 of the CPLR provides creditors with broad authority to issue subpoenas when seeking to collect on judgments. Subpoenas can be served on debtors as well as any third...
Enforcing a Judgment Against Ownership Interests in Entities
Judgment debtors come in all shapes and sizes and can include both individuals and entities. In some cases, a creditor may obtain a judgment against both the entity and the individual owners of that entity. Other times, the judgment is only against the entity or the...
Collecting a Judgment Against the Founder of a Startup
Savvy creditors can employ various strategies to enforce judgments and collect on debts. Our next several posts highlight real-world scenarios, each of which illustrates a different technique that can be used to enforce judgments. The first example involves a creditor...
Four Types of Constructive Fraud Claims
Several sections of New York's Debtor and Creditor Law ("DCL"), which govern similar but distinct claims of constructive fraud, provide redress to creditors for various scenarios in which debtors conceal, move, or unlawfully distribute assets which could otherwise be...
Has Fraud Been Committed, Inadvertently?
Companies or individual debtors can commit fraud inadvertently, all while doing business (or living life) as usual. This is known as "constructive fraud," a type of voidable transaction whereby a debtor's transfer of assets is considered fraudulent to a creditor even...
All the Best Intentions: Inadvertent Voidable Transactions
Most claims for voidable transactions fall under what's known as constructive fraud. In a constructive fraud, a debtor or third party can be held liable for fraudulent conduct even though the offending party did not intend to defraud the creditor. This typically...
