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NYC Judgment Lawyer Reverses Fraudulent Transfers
Obtaining a court judgment is a significant victory, but for many creditors, it is only the first step. When a judgment goes unpaid for years, frustration can build, especially when debtors appear to shift or hide assets to avoid responsibility. In New York, judgment enforcement often requires persistence, investigation, and strategic legal action to overcome these obstacles.
In this Success Story, we highlight how Katz Melinger PLLC, a New York City judgment enforcement law firm, helped a client revive long-stalled collection efforts by challenging improper real estate transfers and restoring a clearer path toward enforcing a long-overdue judgment.
Client Situation
Our client obtained a default judgment in 2015 against a restaurant and its owner for approximately $130,000. Despite holding a valid New York judgment, the client was unable to collect for nearly a decade. Over time, the lack of progress created uncertainty about whether recovery was still possible.
After years of stalled enforcement, the client decided it was time to take a more strategic approach and brought the matter to Katz Melinger PLLC to pursue meaningful recovery.
When the client came to Katz Melinger PLLC, they were concerned that the judgment debtor may have taken steps to avoid payment altogether.
Specifically, the client faced several challenges:
- A New York judgment that remained unpaid for almost ten years
- Limited visibility into the debtor’s assets
- Suspicions that property transfers may have been used to frustrate enforcement
- Concerns about whether enforcement options were still viable so many years later
While many creditors assume that an old judgment is no longer enforceable, New York law provides powerful tools to investigate asset transfers and pursue collection when debtors attempt to shield property from creditors.
Legal Strategy
Our investigation uncovered that:
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- After the judgment was entered, the restaurant owner transferred the deed to the Queens property to one of his own entities
- The transfer was made for no money and without fair consideration
- That entity later transferred the property back to the owner and another individual, again for no money
- The transfers involved insiders and occurred after the judgment had already been entered
These facts raised serious concerns under New York’s Debtor and Creditor Law, which prohibits certain asset transfers made with the intent or effect of hindering, delaying, or defrauding creditors.
To protect our client’s rights, Katz Melinger took decisive legal action:
- We filed a new lawsuit asserting claims for fraudulent conveyances against:
- The restaurant owner
- The additional individual named on the deed
- The related entities involved in the transfers
- We sought to void the property transfers and restore the property to a status that would allow judgment enforcement
- We moved for summary judgment, demonstrating that the transfers lacked fair consideration and occurred after the judgment was entered
The Court voided the transfers, preserving our client’s ability to enforce the New York judgment and strengthening the path toward recovery.
Outcome
The Court granted Katz Melinger’s motion for summary judgment.
As a result:
- The Court voided the transfers of the Queens property
-
- The judgment debtor was prevented from using insider transfers to avoid responsibility
- Our client’s judgment enforcement options were significantly strengthened
After years of stalled recovery attempts, the decision provided meaningful forward momentum by removing a key obstacle that had complicated enforcement.
Why Legal Help Matters in Judgment Enforcement
Many creditors believe that once a judgment goes unpaid for several years, there is little that can be done. Judgment enforcement in New York often requires active legal strategy, especially when debtors attempt to transfer or conceal assets.
Working with an experienced NYC judgment enforcement lawyer can make the difference between a paper judgment and meaningful recovery.
Katz Melinger PLLC helps clients by offering:
- Deep knowledge of New York Debtor and Creditor Law
- Experience identifying and challenging fraudulent conveyances
- Strategic use of post-judgment litigation tools
- Ability to investigate complex ownership structures and insider transactions
- A focused, results-driven approach to long-overdue judgments
Early action is especially important when property transfers are involved, as delays can make enforcement more complicated over time.
Frequently Asked Questions About Judgment Enforcement in New York
Can I still enforce a judgment in New York after many years?
Yes. In New York, judgments are enforceable for 20 years and may be renewed. Even if collection efforts have stalled, an NYC judgment enforcement attorney can evaluate whether enforcement options, such as fraudulent conveyance claims, are still available.
What is fraudulent conveyance under New York law?
A fraudulent conveyance may occur when a debtor transfers property without fair consideration, particularly to insiders, in a way that hinders or delays a creditor’s ability to collect. These transfers can often be challenged in court.
Can a court undo property transfers made after a judgment?
Yes. New York courts have the authority to void improper property transfers when they violate the Debtor and Creditor Law, restoring assets to allow judgment enforcement.
What if a debtor transferred property to a related company or family member?
Transfers to related entities or individuals are closely scrutinized. An experienced New York judgment enforcement lawyer can investigate whether those transfers were improper and pursue legal action if necessary.
Should I speak with a lawyer if I suspect a debtor is hiding assets in NYC?
Absolutely. Early legal guidance can help preserve your rights, prevent further transfers, and increase the likelihood of recovery through strategic enforcement actions.
Contact Katz Melinger PLLC
If you have a New York judgment that has gone unpaid for years or believe a debtor may be transferring assets to avoid payment, legal action may still be possible.
Contact Katz Melinger PLLC 📞 212-460-0047
We invite you to fill out our online consultation form to discuss your judgment enforcement options. Speaking with an attorney early can help protect your rights and restore momentum toward recovery.
Related Reading
- Commercial Collections and Judgment Enforcement in NY & NJ
- Enforcing Judgments Against Business Owners in New York
- Understanding Sexual Harassment in the Workplace
- Post-Judgment Remedies for Creditors in NYC
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