San Diego, CA asked in Collections, Small Claims, Consumer Law and Business Formation for California

Q: Trying to collect on a judgement on a business that dissolved after my judgement. What do I do

The company I won my judgement against change the name of the business and started running the business under this new name on 5/17/2017 5 days before our first court date which they never showed up for all three times. The company did a article of dissolution a month after my judgment was entered which was January 9th 2018 they dissolved it in February 8th 2018. Can you even start a brand new business and operating out of there before the other business is dissolved?

1 Lawyer Answer
Vernon Charles Tucker
Vernon Charles Tucker
Answered
  • Collections Lawyer
  • Simi Valley, CA
  • Licensed in California

A: If the Corporation dissolved typically you are out of luck and have an uphill battle in front of you to enforce the judgment.

However, its complex and requires motion work, but if certain facts are present you could argue the new corporation is the same as the old corporation or is an "Alter Ego" of the old corporation. This may open other doors that could apply pressure to judgment debtor if they are one in the same.

I would look at the amount of the judgment, and see whether it's worth it to pursue or not. Post judgment enforcement is riddled with exceptions and you may need to contact a post judgment attorney and discuss the matter further. Good luck and please feel free to reach out.

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