What Happens If a Judgment Has Been Filed Against My Business?

If a lender or a merchant cash advance company has sued you and obtained a judgment against your business, you're in serious jeopardy. If the judgment is out-of-state, it could take them longer to get to you and seize your assets, but once that judgment reaches Texas, in short order they will seek to seize commercial assets and leave you in dire straits.

If a Judgment Has Been Filed Against My Business, Can They Seize My Commercial and Personal Assets? 

We've witnessed numerous instances where businesses have faced the harsh reality of having their trucks towed directly from job sites, computers, and desks being physically removed from offices, and bank accounts being targeted and drained. This leaves businesses struggling to complete jobs, provide their employees with the tools needed, as well as find it difficult, if not impossible, to make payroll, pay bills, and other financial obligations. Essentially, if it's a commercial asset, and a judgment has been secured against your company, creditors have the legal right to come and seize those assets, regardless of the impact on your business operations.

In Texas, if a judgment is obtained, creditors do have the right to seek and seize personal assets. That does not mean your home or other things that are considered non-exempt assets, but it does mean your toys, such as boats and RVs, as well as any extra vehicles you own, could be at risk.

Where to Turn If a Judgment Has Been Filed Against Your Business

If a judgment has been levied against your business, you need to seek professional advice immediately.

Every situation is unique. If you have questions, contact our office. We'd love to help you.

The material and information contained on this website is for general information purposes only. You should speak with an experienced attorney in your area before making any legal decisions.