What does a Judgement against a business mean?

What does a Judgement against a business mean?

A judgment is an order issued by a court of law. The company, creditor or collection agency has legal ways to pursue payment. One of those options is to sue you. If they are successful, the court issues a judgment against you.

What happens when a judgment is entered against a company?

If you do not do that, then a judgment will be entered against your company. As soon as a judgment is entered, if it is docketed (just requires the payment of a nominal fee) then the judgment becomes a lien against any real property (real estate) owned by the entity whom the judgment is against.

When did the business judgment rule come into effect?

This is where the Business Judgment Rule, introduced by the Companies Act 71 of 2008 (“the Act”) comes in, and it serves as protection for directors which allows them to make informed decisions without the fear of liability. However, the Business Judgment Rule can only be used if all the requirements as set out in the Act are complied with.

Can a director be liable under the business judgment rule?

For instance, if the directors fail to monitor the affairs of the company, there could be liability under the duty of care, skill and diligence and the business judgment rule would have no application.

How to collect judgment against a failed S corporation?

You will need to sue them and collect judgments against them personally to do so. This can be done by naming them as co-defendants in the suit against the corporation. However, courts usually will not allow this against an “innocent” owner — one who has no involvement with the debt.

Does a Judgement against you ever go away?

Renew the judgment Money judgments automatically expire (run out) after 10 years. To prevent this from happening, the creditor must file a request for renewal of the judgment with the court BEFORE the 10 years run out.

Can a company win a judgment against you?

Updated February 08, 2019. Before a person or a company to whom you owe money can win a judgment against you, they must first file a lawsuit in court.

Can a defendant sue the winner of a judgment?

If you receive a disproportionate amount from one defendant, that person is left with the task of evening things out. The defendant who paid the $800 could sue the other for $200. Most judgments order the judgment debtor to pay the winner the total amount due in one lump sum.

What happens if I ignore a default judgment?

Updated February 08, 2019. Before a person or a company to whom you owe money can win a judgment against you, they must first file a lawsuit in court. If you ignore the lawsuit, the court will enter an automatic judgment against you, known as a default judgment. Of course, even if you file an answer to the lawsuit, you can still lose the case.

What’s the best way to pay off a judgment?

If you are going to pay a judgment, you absolutely must ensure it will, in fact, be paid off and a Satisfaction of Judgment will be filed. This should be done by a lawyer. Fitzgerald Campbell has a very affordable, performance-based program to resolve judgments.

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