Legal Question in Credit and Debt Law in California
I'm thinking of purchasing a colleague's professional practice of which the only tangible assets are account receivables, with plans to form a new professional corporation. I have some small personal credit card judgments against me from before. If these receivables are owned by the corporation can the judgment creditors reach them?
Thanks.
2 Answers from Attorneys
Technically yes but it would be a rather convoluted process. They would have to levy the shares of the corporation and become the owners and then as owners collect the receivables for themselves.
Following up on Mr. McCormick's answer, it would be unusual for a judgment creditor to go through the time and expense of that process. If they think the corporation has other value, however, they might not hesitate to levy the shares.
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