Legal Question in Business Law in Pennsylvania
if a business is sued and receives a judgment against it, is it required to pay damages from an existing line of credit if it has no other resources?
1 Answer from Attorneys
A civil judgment isn't worth the paper it's printed on if the judgment creditor can't turn it into dollars. A judgment debtor -- you! -- don't have to voluntarily pay a judgment, and most don't.
Of course, there are actions a judgment creditor can take to convert the paper judgment into paper money. These actions include the seizure and sale of tangible and real property, including bank accounts. If the judgment debtor has no seizable assets, however, the judgment creditor is pretty much out of luck! The judgment creditor would *not* be able to somehow dip into a judgment debtor's untapped line of credit to satisfy the judgment either.
Hope this helps. Feel free to contact me offline if you'd like to discuss your situation in greater detail.
Cary B. Hall, Esquire
Law Offices of Cary B. Hall, L.L.C.
121 East Chestnut Street, Suite 205
Souderton, PA 18964
T: (267) 663-9995
F: (215) 525-4364
http://www.carybhall.com
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