Domesticating a Judgment in New York for Non-NY Cases

A US flag hanging in front of a court house.Domesticating a judgment in New York obtained out of state, to the dismay of some, is not automatic. New York does not allow the automatic registration of a judgment obtained on default from another state. Domesticating a sister-state judgment and converting it to a NY judgment requires filing a lawsuit. It is, therefore, important to understand the defenses available to someone contesting the domestication of the out-of-state judgment in New York. This also may be a good time to mention that out-of-state judgments are not treated the same as federal judgments. Continue reading “Domesticating a Judgment in New York for Non-NY Cases”

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Convert Judgments from Federal to NY State

Photo of the Supreme Courthouse.Yes, it is possible. You can convert judgments from Federal to NY State. If you researched New York’s policy of recognizing judgments obtained in other states or countries as an out-of-state attorney, you might be concerned. That’s because you discovered that New York State does not recognize judgments obtained on default or by consent. Be that as it may, don’t worry. Regardless of that fact, a Federal court judgment easily converts to a NY State judgment.

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Should I Accept a Promise of Payment On an Outstanding Balance From Client’s Future Sales?

Image of two men shaking hands.What happens when a client wants to pay an outstanding balance from their future sales or services? Working with that customer had previously been profitable, but they’ve experienced cash flow issues. For those who wish to continue doing business with a customer who seems to be having difficulties, you need to know how to best position yourself to obtain payment on the aged balance as well as any future sales.

Is there an arrangement that will ensure repayment to you on an outstanding balance and provide future profit from the same customer?

Take for example a client of ours that is a chemical manufacturer. Their customer needs a resin to complete a product made especially for the automotive industry. Their customer has become a slow-paying customer and is way past the agreed-upon terms. They are, however, making weekly installment payments. Without the client’s product, the customer will not be able to fulfill future orders already secured by the automotive company. Having explained that to the resin manufacturer, with our assistance they arrived at the following arrangement: Continue reading “Should I Accept a Promise of Payment On an Outstanding Balance From Client’s Future Sales?”

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Confessions of Judgment Bypass New York Debt Collection Litigation

Did you know that you can use confessions of judgment to bypass New York debt collection? Sometimes, you can even bypass litigation in other states using the New York confession of judgment.

Almost every state has its own version of a confession of judgment. While there may be another name for it, it accomplishes the same goal.

Your out-of-state or in-state customer signs the confession of judgment, agreeing to the amount of damages that they owe you. The customer or third party guarantor consents to you filing the judgment immediately or waiting until payment has not been made as promised.

Confessions of judgment is an extremely powerful tool and can accomplish so much.

It shows good faith by a customer who has delayed payment but wishes to work things out. This agreement is great for clients who can negotiate an “amicable” pay arrangement with their customers. The customer understands that something must be in writing to protect the creditor and insure that they make payment as promised. Continue reading “Confessions of Judgment Bypass New York Debt Collection Litigation”

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