Debt Collecting

[pdecosta]

6 years ago LLC company ( abc) had been sued by debt collector attorney on behalf off some other business company (xyz) and got order from court to collect the debt amount from (abc) business bank account. The company (abs) did not leave any money in bank so debt collector did not get anything. Now question is how long this court order will be effective. If owner of (abc ) company want to continue the same business what are the risks?

 

[Zigner]

6 years ago LLC company ( abc) had been sued by debt collector attorney on behalf off some other business company (xyz) and got order from court to collect the debt amount from (abc) business bank account. The company (abs) did not leave any money in bank so debt collector did not get anything. Now question is how long this court order will be effective. If owner of (abc ) company want to continue the same business what are the risks?

What US state (it makes a difference)?

 

[latigo]

6 years ago LLC company ( abc) had been sued by debt collector attorney on behalf off some other business company (xyz) and got order from court to collect the debt amount from (abc) business bank account. The company (abs) did not leave any money in bank so debt collector did not get anything. Now question is how long this court order will be effective. If owner of (abc ) company want to continue the same business what are the risks?

Forget about this business of a court having issued an order allowing "xyz" to collect owed to it by "abc" out of an "abc" bank account. That didn't happen because the courts don't issue such debtor/credit orders. Take my word for it please.

What happened is that "xyz" recovered a money judgment against "abc". The judgment creditor made a failed attempt collect on the judgment by garnishing the mentioned empty bank account.

Yours and abc's concerns are whether the judgment remains enforceable, that is, is it still active.

And the reason Zigner asked for the name of the state is that the length of times when a judgment is enforceable and the ability and means of renewing them varies among the several states. Savvy?

 

[pdecosta]

Forget about this business of a court having issued an order allowing "xyz" to collect owed to it by "abc" out of an "abc" bank account. That didn't happen because the courts don't issue such debtor/credit orders. Take my word for it please.

What happened is that "xyz" recovered a money judgment against "abc". The judgment creditor made a failed attempt collect on the judgment by garnishing the mentioned empty bank account.

Yours and abc's concerns are whether the judgment remains enforceable, that is, is it still active.

And the reason Zigner asked for the name of the state is that the length of times when a judgment is enforceable and the ability and means of renewing them varies among the several states. Savvy?

Thanks for the advise . Michigan state court ordered for recovery the debt