Scammed by employer-I received default judgement-They won't pay!

[ticked off]

State=TX

I worked for a company that still owes money to me. I sued them and they failed to appear in court after receiving a summons. Of course, I was issued a default judgement.

The problem is that, not only are they refusing to pay me, I was told that I have to get a collection agency to collect the judgement. I can also file an abstract of judgement so that if they try to buy property in that county, they wouldn't be able to without first paying the judgement. That would be great, except I filed the original claim against the company, and not the individual owners. The company has claimed that they have re-organized, but from what I can see, they only changed their name to avoid angry customers that they also owe money or product to. And, they've already moved to a different county.

This company was incorporated. If the company has not dissolved and they simply started doing business under an assumed name, can I change the defendants from the entire company to the individual owners-or, can I file a new claim against the individual owners? Also, if I can change the name, can I sue the registered agent?

Another thing that I was wondering about-I was an independent contractor, not an employee. If they really dissolved the company, weren't they legally obligated to notify me beforehand?

Any help is greatly appreciated. Have a good one!

 

[Dandy Don]

The fact that they reorganized does not absolve them of the liability to pay. The state agency that registers the business probably has the names of the same individuals on file as who handled the former company.

You need a debt collections attorney or civil attorney or business law attorney to find out exactly what to do to collect your judgment. This is not something you can do on your own. Attorney or private investigator can find out where their bank accounts are and then you are on your way to collecting.

 

[JETX]

First thing you need to do is to ignore Dandy Dunce. He is a forum troll who knows NOTHING about the law... which is obvious from his posts. So, here are the legally CORRECT answers!!

I worked for a company that still owes money to me. I sued them and they failed to appear in court after receiving a summons. Of course, I was issued a default judgement.

Was this work as an employee?? If so, contact the Texas Workforce Commission and file a complaint.
If you were NOT an employee (contractor), then your recourse was through the court (which you already did).

The problem is that, not only are they refusing to pay me, I was told that I have to get a collection agency to collect the judgement.

Not true. As a judgment creditor, you have several legal processes you can use to enforce a judgment.

I can also file an abstract of judgement so that if they try to buy property in that county, they wouldn't be able to without first paying the judgement.

Again, not true. A judgment lien (recorded Abstract) only applies if a judgment creditor owns real property and tries to sell or refinance. It does nothing to prevent a debtor from trying to purchase.

That would be great, except I filed the original claim against the company, and not the individual owners. The company has claimed that they have re-organized, but from what I can see, they only changed their name to avoid angry customers that they also owe money or product to. And, they've already moved to a different county.

First, county means nothing. A Texas judgment is valid in the entire state. Second, you have a LARGE problem about the name issue... see below.

This company was incorporated. If the company has not dissolved and they simply started doing business under an assumed name, can I change the defendants from the entire company to the individual owners-or, can I file a new claim against the individual owners?

No. You will have to go after the process of trying to show a court that the new company is simply an 'alter ego' of the orginal debtor... and ask that they amend the suit to include the new 'company' name. Depending on your legal ability, this could be more than you can do without an attorney.

Also, if I can change the name, can I sue the registered agent?

No.

Another thing that I was wondering about-I was an independent contractor, not an employee. If they really dissolved the company, weren't they legally obligated to notify me beforehand?

Yes. That is covered under the Texas Corporation Code.

 

[ticked off]

Thanks

Thanks for the advice. I will see what I can do, then follow-up, hopefully with good news! Again, thanks.

 

[CraigFL]

And the reality of the situation is that I could paper my walls with all the unpaid judgements I have against corporations. But think of all the satisfaction I have....

The commonality I see for uncollectable judgements is that they are always the "default" type because they never show up in court if they never intend to pay...

 

[Dandy Don]

JETX, YOU'RE the dunce. Why tell someone they have "several legal processes" to enforce the judgment and then not tell them how to do it?

 

[JETX]

JETX, YOU'RE the dunce. Why tell someone they have "several legal processes" to enforce the judgment and then not tell them how to do it?

Lets see... who is the dunce here?
You offer incorrect 'advice' (as usual).
I offer correct advice.
Seems pretty clear to most anyone with half a mind... which kind of excludes you, huh Keith??

As for why I don't "tell them how to do it"... There are several legal processes available. Some will work, others won't. I don't teach collection law.
Even to idiots like you who could clearly use the lessons.

 

[Dandy Don]

And you still have not told the poster ONE of the supposed legal processes she can take.

 

[JETX]

And you still have not told the poster ONE of the supposed legal processes she can take.

Awww... poor baby. Can't find anything else to complain about, huh???

So, in answer, the most common legal processes to try to enforcer a judgment are:
1) Writ of Execution
2) Garnishment
3) Turn Over Order

Your still a 'Dandy Dunce' with NO legal experience or education.