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Consider the case when your judgment debtor is a small corporate entity (which still makes a profit and/or has assets) that seems to at least partially own, or be related to other "partner" small corporate entities; who appear to be helping your judgment debtor hide income and assets to thwart creditors? Solutions with such circumstances usually begin with several debtor and 3rd-party exams, and they aren't quick or cheap. My articles are my opinions and are not, a legal opinion. I'm a judgment recovery expert, and not an attorney. If you want a strategy to use or legal advice, you should retain an attorney. The relatively advanced strategies discussed in this article for certain circumstances having close-knit small company "shenanigan" relationships involving a debtor business. You should expect all parties to have an attorney retained to attempt to thwart all attempts to get any information. I recommend you retain an attorney to try such types of post-judgment strategies. When there are partner company asset shenanigan/money laundering circumstances, the key to following trails to possible income or assets to attach; is with some kind of proof that the entity(s) involved with your judgment debtor company pays the debtor, storing assets on behalf of the debtor, or has knowledge about the debtor's assets. California's subpoena threshold for witnesses is two hundred and fifty. When you have a good faith belief that some 3rd-party is holding, and/or has first-hand information about more than two hundred and fifty worth of the judgment debtor's assets or income; they may become a witness to that. As an example, you've got a judgment against company A, and you've got some evidence which causes you to believe the income or assets of company A, may be related to, at, or coming from, companies C and/or B. The first step for this kind of post-judgment information discovery is to schedule a debtor exam including subpoenaed requests for documents from the judgment debtor company; to determine which bank accounts, if any, they control, and whether such accounts are in their name or not. When company C and/or B is involved in some money movement with A, you should be able to divert that cash flow after getting the right court orders. As per California law, along with your court-scheduled subpoena for a representative of company A (the debtor) to show up at a judgment debtor exam; you can also subpoena representatives of companies C and B as witnesses concerning assets belonging to A, if you declare and believe that they hold, or know of, more than $250, which belongs to A. The main idea in bringing in companies C and B is for them to answer questions concerning A, and/or supply all records, that list any of A's assets/income or rights to them. Subpoenaing 3rd-parties to provide documents like their bank records is a big deal, so make certain you've got some level of proof or a good reason to believe they are paying company A, is involved with A, or knows about A's available assets. Either companies B or C know about or have company A's assets, or they do not. Either they will lie or tell you the truth. When you know they're lying, let them see a copy of your proof. If this does not work, your only option left may be to start a new creditor's fraudulent asset transfer lawsuit; and this isn't guaranteed, easy, or cheap; and is way past the scope of this article. If company C or B admits to having knowledge of, or possessing some of A's available assets, this is a good beginning; but what matters most are documents which prove this, or even nicer, your debtor repaying you. When you subpoenaed documents that A, C, or B didn't bring, then you can ask the court to continue the examination to a future date when the parties can bring the subpoenaed documents. Usually, asset transfers are legitimate and not intended to hinder judgment creditors. If this is the case, subpoenaed third parties should be willing to provide copies of their contracts with the judgment debtor company, because as the creditor, you have the right to see those contracts. Sometimes companies factor invoices for one another, which can be used for laundering income. In these kind of situations, maybe you can win your motion from your court which orders A not to hypothecate any invoices issued after some date. This should stop any more invoices from being factored until the judgment is satisfied. In theory, you could stop that diversion of company A's income from invoices by either: 1) Getting the court to order C and/or B to stop factoring invoices for your judgment debtor company. 2) Winning a motion for an assignment order from the court, to order that any money being sent to company A (your judgment debtor), will instead go to you until your judgment gets repaid; and then serving the order on C and B so that any factoring payment profits for any invoices tendered to B or C from the debtor company will be sent to you. After this kind of a court order is served on them, if C or B (or any of B or C's subsidiaries) disobeys the court order or pays or wires money to any accounts owned or controlled by company A, they will most likely be in contempt of the court order. Mark Shapiro of: http://www.JudgmentBuy.com - The fastest and easiest free way to find the best expert to buy or recover your judgment.
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