Legal Question in Business Law in Massachusetts

Civil Judgement

I had a civil judgement issued against me a few years ago that I cannot pay. I am now in the process of starting a business. How will this judgement affect my new business?


Asked on 1/29/03, 7:01 pm

2 Answers from Attorneys
Nance Lyons Law Office of Nance Lyons

Re: Civil Judgement

If the judgment is against you personally, you remain responsible for it. The judgment creditor can go after you at any time. If new business is a corporation, judgment is not collectable against corporation. If a d/b/a personal debt is collectable

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Answered on 1/30/03, 5:51 pm
Lawrence Graves Coolidge & Graves PLLC

Re: Civil Judgement

Taken literally, the answer may be "not at all" because the judgment is against you rather than your new business (assuming that you are incorporating). However, in practical terms, the new business is at risk because the judgment creditor can levy on your equity ownership of your new company to satisfy the old judgment.

You should think about consulting with a lawyer who specializes in representing clients who have debts that they cannot pay.

Best wishes,

LDWG

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Answered on 1/29/03, 7:27 pm


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