Judgment collection

[sanford64]

I have a judgment for $1,000 against a contractor for taking payment on a job and failing to complete the work. I sued the contractor both as a corporation (xyz inc.) and as an individual in New Jersey. The contractor is the sole owner of xyz inc.

In October 2000, a default judgment was entered against both parties since the contractor failed to show. The contractor appealed the judgment claiming I had no standing to sue him as an individual since my contract was with xyz. inc. The judge sent it back for reconsideration.

The judge heard the case again in June 2001 with all parties present and ruled in my favor against both xyz inc. and the individual.

The debtor has claimed the corporation is out of business and he is going to declare personal bankruptcy. (He has made this threat for months and has never followed through)

In searching for the debtors assets, I searched the motor vehicles records of the work truck that showed up when he started the project. The work truck has the name xyz inc. painted on the side. (The truck is still parked at the contractors home with the same xyz inc. sign)

The search turned up the truck is owned by another corporation, abc inc. Also, it has always been owned by abc inc. (i.e. it was not transferred after my lawsuit) I then searched the state records and found that abc inc. is solely owned by the same contractor.

Questions,
Do I have any chance of getting a levy against this vehicle? (i.e. can he make himself judgment proof if all of his assets are in another shell company)

Is this a 'soft' judgment since it was first entered as a default? (i.e. will a judgment collection company accept this type of a judgment)

 

[JETX]

Let me answer you last question first. The reason that defaults are considered 'weak' judgments is that the defendant (judgment debtor) might be able to claim that he was not properly notified of the lawsuit and that prevented his defense. In your case, he obviously can't make that claim, so yours is a good solid judgment that would be extremely hard to get set aside.

Why focus on the vehicle? Especially with its clouded ownership. Go after his other assets. Each state has enforcement procedures. Some are wage garnishment, property seizure, bank levy's, etc. depending on your state. Since you didn't read the instructions (see the RED text at the top of the screen???), we can't tell you what actions are allowed in your state. Go to your local library or bookstore and look for legal books that include chapters on collecting your judgment.

 

[sanford64]

Judgment Collection

Halket,

Thank you for your response to my question. I did read the red lettered words and did include the state in my question (New Jersey). Now that you know the state, is there any more advice you can give.

As far as the vehicle is concerned, I focused on this because the defendent had filed for personnel bankruptcy in 1999 and it was dismissed because he failed to provide the proper paperwork. In his filing he listed that he had no assets. This may have changed since 1999 but I thought the vehicle may be the easiest to attach.

 

[JETX]

Your original post said, "I sued the contractor both as a corporation (xyz inc.) and as an individual in New Jersey", but that doesn't necessarily tell us that is where the case should be. In your case, the debtors assets could be across any state line (New York) and you would have to enforce the judgment under those laws.

In any case, my recommendation remains. Get a book and see what remedies are available in the appropriate state.

Or you can find a Judgment Enforcement professional in your state by clicking on:
http://www.nationaljudgment.net