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Collections Law/Can a judgment be enforced?

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Expert: Michael Brotherton - 5/9/2008


Question
If a company you owe money to sues you, gets a judgment and later goes out of business, is the judgment still enforcible?

Answer
This depends on whether they still have an obligation to you according to the contract you signed such as a gym membership or other ongoing service. If this is the situation you may be able to file a suit to be released from the obligation. If they were incorporated there should still be a record of the statutory agent with your state. This is the person responsible for accepting notice of any court proceedings for the company you owed. You should name the original creditor and their successors (probably the collection agency). You will need to show the ocntract that they still have an obligation to fulfill. Ask the judge to set aside your judgment and void the contract.

I would need more information to get more specific but you get the gist of what I am saying.

Be sure and do your homework and research your case before taking any action. This includes talking to at least two attorneys to find out specifically what action to file. You are probably not the only customer in this situation so maybe you can look for other suits against this company. SOme courts have on line access so check court dockets by name of the company and/or the owner.

I hope this helps.

Mike

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Michael Brotherton

Expertise

Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).

Experience

Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.

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