If a corporation is unable to pay a judgment entered against it, what can the plaintiff do?
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If a corporation is unable to pay a judgment entered against it, what can the plaintiff do?
Asked on May 9, 2011 under Bankruptcy Law, Alabama
Answers:
M.S., Member, Connecticut Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Recovery is one of those sticky lawsuit problems. Sometimes, you have a great case in terms of liability, but there are no assets to recover. For example, if a bum steals an uninsured car and crashes into you, you've got clear liability; however, there are no assets to provide recovery for your injuries. In your case, since you are suing a corporation, you may have several options. First, the corporation may have assets, such as a building, vehicles, etc., that you may be able to attach to your judgment. Once you attach them, you can either get a court to force their sale, and collect the proceeds, or collect at the time that they are sold in the future. Also, judgments are generally good for many years; therefore, if the corporation gets some money in the future, you may be able to execute the judgment at that time. In any event, I suggest that you speak with a local collections attorney to evaluate which option(s) work best in this particular circumstance, and then develop a strategy with respect to collection.
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