Judgment . . . - Posted by JoeKaiser
Posted by JoeKaiser on December 23, 1999 at 01:45:12:
Contractor shuts down his corporation in late 93. Still owes suppliers.
Suppliers start suing corporation in 94. Some sue the contractor personally as well since the corp is defunct. Judgments happen.
Contractor files personal bankruptcy in 96, discharging all personal obligation on the debts. Judgment creditors give up all hope of collecting from a bankrupt and a defunct corp.
Fast forward to today . . .
Contractor’s long since defunct corporation ends up with a $30k windfall they don’t yet know about (a property the corp owned and presumably abandoned went to a foreclosure sale where there was bidding activity).
We step in and buy the judgments rendered against the corp in 94. Creditors all believe they’ve been bankrupted away so it didn’t take much dough to get them.
We maintain the judgments are still valid as to the corp. and intend to garnish the funds now being held on behalf of the corp. (it never filed bankruptcy).
Seems like a go, but something tells me I’m missing something. Why wouldn’t this work?