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Fraudulent Transfers to Insiders
Winning a judgment should bring relief to an aggrieved party, but for one of our clients, that was just the beginning of another battle: collecting what was rightfully theirs. When a judgment debtor tries to hide or transfer its assets to protect it from a creditor, it can be difficult to recover the money the creditor is owed. Fortunately for this client, our experience and legal expertise in enforcing judgments allowed us to not only recover 100% of the original judgment amount, but also an additional $134,000 in accrued interest, securing a total victory for our client.
Enforcing a judgment can be daunting, especially when debtors use tactics to evade payment. However, specialized legal representation can make a significant difference.
At Katz Melinger PLLC, we understand the strategies debtors employ to avoid payment and are experts in judgment enforcement. We provide tailored legal solutions to help you recover what is rightfully yours. Let our experienced team guide you through the process and fight for your rights. Don’t delay—secure the money you’re owed by contacting us today. Call 212-460-0047 or fill out our online form to schedule a free consultation.
A Church Closes and Hides Its Assets
A client came to us to enforce a judgment of about $580,000 that he obtained against a church after a trial.
During the trial, the owners of the church closed the church and moved all of its assets to a new church they created. As a result, the old church was left without any assets that could be used to satisfy our client’s judgment.
- Judgment Amount: $580,000
- Debtor’s Move: Closed the church during the trial and transferred the assets to a new church entity.
- Client’s Challenge: The old church appeared to be without any assets, and the client did not have a judgment against the new church, making collection seem impossible.
While this situation may have seemed like the end of the road for our client, we knew that our client had options and, with thorough legal investigation, that recovering money for our client was still possible.
Uncovering the New Church’s Fraudulent Transfers
Despite the old church no longer holding any assets, our team conducted an in-depth investigation and uncovered transfers of significant assets from the old church to the new church after our client had asserted claims against the old church. Here’s what we found:
- Large Asset Transfer: We discovered that a check for more than $2.5 million, payable to the old church, had been deposited into the new church’s bank account after the old church knew about our client’s claims.
- Evidence of Fraud: It became clear that the owners of the church had orchestrated these transfers to hide the old church’s assets from our client.
Legal Action: Securing a Second Judgment and Recovering Funds
Armed with the evidence of fraudulent transfers, we took several strategic legal actions to protect our client’s interests and ensure the recovery of the full amount owed:
- Filing a Lawsuit: We filed a lawsuit against the affiliates and owners of the old church, arguing that the transfers were fraudulent and demanding that these assets be used to satisfy our client’s judgment.
- Restraining the New Church’s Bank Account: We immediately took action to restrain the new church’s bank account, preventing further asset movement.
- Securing a Court Order: The Court reviewed our evidence and agreed that the transfers were fraudulent. The Court then issued an order requiring the bank to use the restrained funds from the new church’s account to immediately satisfy our client’s judgment.
Full Recovery for Our Client, Plus $134,000 in Accrued Interest
Our comprehensive legal strategy resulted in a full recovery for our client:
- Total Recovery: More than $700,000, which included the original judgment amount of $580,000 plus an additional $134,000 in accrued interest.
- Client Relief: The bank issued a check for the full amount, turning a challenging situation into a successful recovery.
This outcome was achieved through our diligent efforts, which included uncovering fraudulent transfers, securing a second judgment for our client, and effectively levying the bank account of the new church that had been funded by the assets of the old church.
The Importance of Expert Legal Representation
If you’re dealing with a debtor who has hidden or transferred assets to avoid paying a judgment, don’t let them get away with it. At Katz Melinger PLLC, we have the expertise to uncover hidden assets, challenge fraudulent transfers, and enforce judgments effectively.
Here’s what we did—and what you can do:
- Investigate Thoroughly: Even when it seems like there’s nothing to collect, a deep investigation can uncover hidden assets.
- Challenge Fraudulent Transfers: With legal support, you can uncover fraudulent asset movements and bring these actions to light.
- Recover What’s Yours: Don’t give up. With expert legal strategies, you can recover your money, just like our client did.
Take the first step towards recovering what’s yours. Contact us at 212-460-0047 or fill out our online form for a free, no-obligation consultation to discuss your case. Let our experienced legal team help you navigate the complexities of judgment enforcement, so you can secure the financial relief you deserve.
Frequently Asked Questions (FAQs) on Judgment Enforcement
Q: What are some ways to collect unpaid judgments?
A: To collect an unpaid judgment, several strategies can be effective, but having legal support is crucial. If a debtor transfers assets to avoid paying, legal action may be necessary to reverse those transfers. We can also serve subpoenas for information and documents, freeze bank accounts, and place liens on property to secure payment.
Q: How can I recover hidden assets in high-value cases?
A: Recovering hidden assets in high-value cases can be challenging, but with the right legal support, it’s possible. Katz Melinger PLLC has extensive experience tracing financial transactions to uncover hidden assets. If suspicious transfers are found, legal action can be taken to reverse them. Additionally, securing court orders to restrain accounts or properties can prevent further asset concealment. The firm’s expertise in handling complex cases has helped clients recover millions in assets.
Q: What should I do if my debtor moves assets to avoid payment?
A: If a debtor moves assets to avoid payment, quick and decisive legal action is necessary. A judgment enforcement attorney can investigate whether these transfers were fraudulent and advise on the best steps forward. If needed, a lawsuit can be filed to reverse the transfers, with court orders potentially freezing the debtor’s accounts.
Q: What’s involved in enforcing judgments in financial disputes?
A: Enforcing judgments in financial disputes typically involves several key steps, and having expert legal support can make the process more effective. Tools like bank levies, wage garnishments, or property liens can then be used to secure payment.
Q: What is a ‘fraudulent transfer,’ and how does it affect judgment enforcement?
A: A fraudulent transfer happens when a debtor moves assets to another person or entity to avoid paying a debt or judgment. Proving such transfers in court can allow creditors to recover those assets. Katz Melinger PLLC has successfully handled numerous cases involving fraudulent transfers, accruing expert legal strategies in this area to help their clients prevail against debtors.
Secure Your Financial Recovery Today
If you’re dealing with a debtor who has hidden or transferred assets to avoid paying a judgment, don’t let them get away with it.
At Katz Melinger PLLC, we have the expertise to investigate and challenge defendant-debtors and help you get what you are owed with our thoughtful legal strategies. Contact us today for a free, no-obligation consultation to discuss your case at 212-460-0047 or fill out our online form.
Let our experienced legal team help you navigate the complexities of judgment enforcement and asset recovery, so you can secure the financial relief you deserve.
Contact Us Today for a Free Consultation
Contact us today at 212-460-0047 or fill out our online form for a free consultation. With judgment enforcement experts like Katz Melinger PLCC on your side, you can get what you are rightfully owed.
Please note: This blog post is for informational purposes only and does not constitute legal advice. Every case is unique, and the information provided may not apply to your specific situation. For personalized guidance on wage and labor issues, please contact Katz Melinger directly.
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