How to collect on judgment if corporate debtor's bank is unknown?
Legal assistant with no experience working on collections, assigned to case where the client received a judgment against his previous employer last year and is trying to collect from the corporation. Problems -
(1) the corporation has since been acquired by another company;
(2) the corporation transfered its funds out of the bank we knew about;
(3) the corporation will not reveal where it moved all the money to. We subpoenaed the debtor, the acquiring company and the prior bank, but got nothing.
What do I do? Please help
2 Answers from Attorneys
The transfer of ownership should be public. Check with Secretary of State. Find out the attorneys who represented the parties in the acquisition transaction and subpoena them. They got paid. Make them reveal how. Why did you get "nothing" from the three parties you subpoenaed? If they did not respond they are in contempt. Threaten to hold them in contempt and if they still do not respond commence a contempt proceeding. If they did respond but gave you useless information, re-issue subpoenas with BETTER questions and start over.
Hold a deposition. Did new Corp. assume liabilities?