Sometimes in collections, it is very easy to obtain a judgment against a debtor, but very difficult to collect on the judgment. A judgment debtor may transfer all of its assets to a third party before the judgment is even obtained. The judgment debtor may close its doors and reopen an identical business with a new name and new corporate identity. How does a creditor proceed to collect on its judgment when this happens?
There is a Florida statute that allows a creditor to set aside transfers made by the debtor to third parties and permits collection against a new business or entity that is merely a continuation of the judgment debtor. This process is called “proceedings supplementary” and allows the creditor to seek collection against the third party who received the transfer in the same case in which the judgment was entered. This saves time and money for the creditor. The statute also allows for the court to require that the third party recipient turn over any of the judgment debtor’s assets to the creditor toward satisfaction of the judgment. Proceedings supplementary also provides an avenue by which a creditor can seek to collect from a new business that is merely a continuation of the debtor.
At the law firm of Allison L. Friedman, P.A., we have handled many such cases throughout Florida and have extensive experience in chasing the assets through proceedings supplementary. Our clients benefit from our thorough understanding of this area of law and we have been successful in collecting in this manner for many of our clients. Proceedings supplementary provides an effective way to collect on your judgment in the event the debtor has disposed of its assets to third parties.
Contact A Aventura — Dade County Judgment Debt Collection Attorney
To find out more about how we can help you collect on a judgment through proceedings supplementary, please contact a creditor rights lawyer from our law firm in Aventura.