As a business owner, you understand the importance of protecting your assets and managing your debt. However, when companies go out of business, change names or dissolve, it can be difficult to collect on outstanding debts. The question is, do corporate debts disappear when these events occur? The answer is no.
At our law firm, we have been handling complex corporate debt collection matters for clients throughout Florida since 1996. We understand the challenges that businesses face when trying to collect on outstanding debts, and we have the experience and expertise to help you navigate this process.
One legal remedy that may be available to you is called “proceeding supplementary.” This process allows creditors to collect on outstanding debts from a third party in possession of a non-exempt asset that would have otherwise been subject to the judgment or a new entity that has formed in the wake of a previous business closing down. It is based on the principle that a third party should not be able to participate in ownership or control of an asset that was or should have been subject to the judgement nor should a new entity be able to evade responsibility for the debts of a previous entity simply by changing its name or structure but still controlling or possessing assets of the judgment debtor.
To be able to invoke proceedings supplementary , it is necessary to have a valid unsatisfied judgment and show a relationship between the asset your seeking to collect on and the entity or person now in possession or control. This may involve proving that the new entity is merely a continuation of the old entity, or that the same individuals or shareholders are involved in both entities.
In order to utilize proceedings supplementary, it’s important to have experienced attorneys who understand the complexities of corporate debt collection and can help you navigate the legal process. Our firm has the knowledge and expertise to help you understand your legal options and take the necessary steps to collect on your outstanding debts.
In conclusion, proceeding supplementary is a legal remedy that can help you collect on outstanding corporate judgement debts from third parties or perhaps new entities that have formed in the wake of a previous business closing down. Contact us today to learn more about how we can help you navigate this process and maximize your recovery.