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What Assets Can be Levied Under a Judgment in New York?
If you have a court judgment resulting from a commercial dispute, sometimes informally known as a commercial judgment, you may be wondering how to enforce it and recover the money you’re owed. A key question is what assets can be seized to satisfy a judgment in New York.
If the debtor cannot or will not pay voluntarily, New York law provides tools to help creditors recover what they’re owed—including the ability to target certain types of assets.
Why Choose Katz Melinger PLLC
At Katz Melinger, we represent companies in obtaining and enforcing judgments in business disputes throughout New York. We know that obtaining the judgment is only the first step of the process, as many creditors must resort to enforcement efforts. Our experienced judgment collection and enforcement attorneys will explore your best options to collect what you are owed.
With our firm, we offer:
- Skilled advocacy in judgment enforcement and business debt recovery
- Strategic insight into post-judgment remedies, including asset levies, liens, and garnishments
- A focused approach to identifying the most effective collection methods for your case and maximizing your recovery
Attorneys who understand the urgency of recovering what your business is owed - Free, confidential consultations with our team
Understanding Business-Related Judgments and Asset Seizure in New York
When a business is involved in a legal dispute that results in a judgment, it does not always result in immediate payment for various reasons.
In New York, a judgment allows a creditor to collect the debt owed by seizing assets belonging to the judgment debtor. This can include property, bank accounts, or other business-related assets.
Seizing assets for liquidation is one of several tools a creditor might utilize through the courts to collect payment on a judgment.
Types of Assets that Can Be Levied
Under a judgment against a business in New York, various types of assets can be levied to satisfy the debt owed to the creditor.
These assets may include, but are not limited to:
- Real estate: Real estate properties owned by the judgment debtor, such as commercial buildings or land, can be subject to levy to satisfy a commercial judgment.
- Bank accounts: Bank accounts held by the judgment debtor, whether personal or business accounts, can be frozen or seized to collect the debt owed.
- Vehicles: Vehicles owned by the judgment debtor, including cars, trucks, or other vehicles of value, can be levied to satisfy the judgment.
- Business assets: Assets owned by the judgment debtor’s business, such as equipment, inventory, or accounts receivable, can be subject to levy under a commercial judgment.
- Intellectual property: Intellectual property rights, such as trademarks, patents, or copyrights, can be seized to satisfy the debt owed by the judgment debtor.
Each situation is unique, and asset availability depends on ownership and structure (e.g., sole proprietorship vs. LLC).
Asset Seizure Process
To start, a creditor must obtain a Writ of Execution from the court, granting authority to the sheriff to enforce the judgment.
Then, the sheriff will seize the debtor’s identified assets, which can include bank accounts, real estate, and personal property. If the debtor is a commercial entity, you might seize vehicles, equipment, or inventory of the business, as well as bank accounts. Once assets are seized, they may be sold at auction to satisfy the judgment.
Other Judgment Enforcement Methods in Business Disputes
Aside from asset seizure, there are other strategies available to creditors to enforce judgments.
In addition to seizing assets, creditors in New York can pursue:
- Charging orders: To collect from distributions in a partnership or LLC
- Real estate liens: Securing the debt against property
- Bank levies: Freezing and recovering funds directly from accounts
Our team assesses your case to determine the most effective combination of enforcement tools based on the nature of the debt and the debtor’s structure.
How Katz Melinger Can Help You
Facing a judgment against a business in New York? Contact Katz Melinger online or at 212-460-0047 for trusted legal guidance and representation. Our experienced attorneys can counsel you on business debt collection and judgment enforcement matters.
FAQs
What is a commercial judgment?
While not a formal legal term, a “commercial judgment” typically refers to a court judgment arising from a business-related dispute (i.e. breach of contract, unpaid invoices, or loan defaults). In legal terms, it’s simply called a judgment in New York.
Can I seize a business’s assets to collect a judgment in New York?
Yes. If the business doesn’t pay voluntarily, certain assets can be levied to satisfy the judgment.
What types of assets can be levied to enforce a judgment?
Creditors may be able to levy:
- Bank accounts (business or personal)
- Real estate and commercial property
- Business equipment and vehicles
- Accounts receivable or inventory
- Intellectual property, such as trademarks or patents
Do I need a lawyer to enforce a judgment against a business?
While not required by law, working with an experienced judgment enforcement attorney can significantly improve your chances of recovering the full amount. An attorney can uncover hidden assets, navigate court procedures, and take swift action if the business tries to avoid payment.
Additional Resources
For more on judgment enforcement and commercial collections, you may also find these helpful:
- Success Story: Winning $2.5M Judgment Against Lease Guarantor
- Think It’s Too Difficult to Collect on Your Judgment? Not Always.
- Can I Enforce an Out-of-State Judgment in New York?
- Effective Judgment Collection: Skilled Legal Advocacy
The information provided should not be taken as legal advice. For the most current and thorough details, it is advisable to seek assistance from a legal professional by contacting a qualified attorney.
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