Post-Judgment Litigation and Proceedings

Actions and Proceedings to Enforce Judgments

Bernard D’Orazio & Associates, P.C., has a broad-based New York commercial debt collection practice, including comprehensive post-judgment collection litigation and judgment enforcement actions. The options that we may consider to enforce a Judgment include:

• Discovery of and setting aside fraudulent conveyances and fraudulent transfers;
• Commencing proceedings to “pierce the corporate veil,” hold parties liable as successors-in-interest to a judgment debtor, and impose personal liability on corporate insiders;
• Subpoenas and depositions of judgment debtors and other witnesses to obtain testimony and documents regarding the assets and financial affairs of judgment debtors;
• Executing on and selling real and personal property;
• Restraining bank and other financial accounts; and
• Wage garnishments, installment payment orders, and “turnover” proceedings;

As experienced New York judgment enforcement lawyers, we develop customized and creative judgment enforcement plans to meet the needs of our clients. Judgment enforcement in New York is not easy and not something for the inexperienced. That’s why so many prominent law firms and lawyers refer their judgment enforcement matters to us.

Fraudulent Conveyance Litigation and Actions “To Pierce the Corporate Veil”

A fraudulent conveyance or fraudulent transfer is a transfer of assets by a debtor for little or no consideration and with actual or constructive intent to hinder, delay, or defraud a creditor. It is illegal for debtors to transfer property to avoid paying their creditors or to try to make themselves “judgment proof.” A court may, on a creditor’s application, invalidate a fraudulent conveyance or fraudulent transfer of assets and award other appropriate relief, including attorneys’ fees. The only way forward for many frustrated judgment creditors is via an experienced New York fraudulent conveyance law firm; a practice area for which we are renowned.

Fraudulent conveyance law has its origin in a British law enacted in 1571 known as the Statute of Elizabeth. The fascinating text of this law explaining the reasons for its enactment reveal that nothing much has changed when it comes to debtors perpetrating frauds on their creditors:

For the avoiding of feigned, covinous and fraudulent feoffments, gifts, grants, alienations, bonds, suits, judgments and executions, as well of lands and in tenements, as of goods and chattels, more commonly used and practised in these days than hath been seen or heard of heretofore ; which feoffments, gifts, grants etc. have been and are devised and contrived of malice, fraud, covin, collusion or guile to the end, purpose and intent to delay, hinder or defraud creditors and others of their just and lawful actions, suits, debts, etc.; not only to the let or hindrance of the due course and execution of law and justice, but also to the overthrow of all true and plain dealing, bargaining and chevisance between man and man, without the which no commonwealth or civil society can be maintained or continued.

“Piercing the corporate veil” refers to an action to have a corporation’s legal form set aside such that personal liability attaches and personal assets of corporate owners or other insiders can be reached to satisfy a corporate debt. If a corporation is believed to have inadequate assets to cover liabilities, a plaintiff may seek to prove that the corporation has been operated improperly, is a sham, and ask that the court “pierce the corporate veil.” Generally, in deciding whether the corporate veil should be pierced, courts will look at whether the corporation followed proper procedures and formalities, the degree of individual control that the principals maintained over the corporation, and whether the principals used the corporation to advance purely personal purposes.

For more information, please contact us to schedule an appointment or for a no-obligation review of your case.