Articles Posted in Involuntary Bankruptcy

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Over the years, clients have sought my advice after they have obtained a judgment against a limited liability company or a corporation, and after they have tried, without success, to collect on that judgment.  All of the typical judgment enforcement methods have already failed.  Because judgment debtors generally do not volunteer payment and sometimes will take steps to make it much more difficult for a creditor to collect, this scenario is somewhat common.  In response, clients will ask what they can do.  There are a number of options.  These include putting the judgment debtor into an involuntary bankruptcy; another option is to seek to have the judgment amended to add the principals of the debtor as additional judgment debtors.  The case of In re O’Reilly & Collins (discussed below) is interesting because it shows that although both options are available, a creditor might run into problems trying to do both. Continue reading