Absent fraud or other wrongdoing, principals of corporations remains shielded from liability for corporate debts. This limitation in New York debt collection litigation leaves creditors frustrated. An article that appeared in this week’s Wall Street Journal highlighted China’s policy to rate citizens based upon their moral and ethical activities. Applying the social credit score here in New York, a principal of a corporation could receive a bad rating based upon their failure to direct corporate finances to pay monies due and owing before and as a result of New York Debt Collection litigation. For more information about China’s new tool: a social credit score, read the article. For more information about remedies available to unpaid creditors and New York Debt Collection litigation, contact Frank, Frank, Goldstein and Nager at 212-686-0100 or jnager@ffgnesqs.com for a free consultation.
