CNN reporter Fredericka Whitfield interviewed Jocelyn Nager, president of Frank, Frank, Goldstein & Nager on Sunday, March 24 to discuss former President Donald Trump’s civil fraud case.
Reports stated it may not be possible for the former president to bond the state’s nearly half-billion ($500,000,000) judgment. Following the interview, the deadline to post the bond was extended an additional 10 days, and the bond requirement reduced to $175,000,000. If Trump cannot post the bond and execution of the judgment is not stayed, the judgment can be enforced here in New York and elsewhere.
The interview covered a variety of topics including a multi-faceted approach to securing the bond. A judgment creditor is not limited to taking execution one step at a time. The creditor can execute in a variety of ways at the same time.
An easy way to enforce a judgment in New York is to restrain bank accounts. A judgment creditor would issue a restraining notice to the bank. The restraining notice must be served in accordance with New York state law. The notice can be served personally, by registered or certified mail, or by electronic means. Once a restraining notice is prepared, someone could go to the bank or other financial institution and serve the restraining notice in person. The bank must “freeze” the account(s) upon receipt of the restraining notice. Some types of funds are exempt and are not subject to restraint that may be on deposit.
Another way to restrain a bank account and (other types of accounts) is for the judgment creditor or their attorneys to issue a property execution to the marshal or sheriff to levy at the bank. The marshal or sheriff could serve the bank. Since you do not need permission from the court to seize a bank account in New York, the process to restrain or freeze the account(s) is very fast.
Turnover of the funds, restrained or frozen, depends upon whether the judgment debtor is the sole owner of the account, the balance in the account, and the source of the funds.
Ms. Nager was also asked about artwork owned by the ex-president and the ability of the marshal or sheriff to seize personal effects. The sheriff or marshal will not enter a private home to seize assets belonging to an individual judgment debtor. A creditor would need information regarding the artwork owned by the judgment debtor. With specific details of the artwork or personal asset, you could then seek a court order. The application to the court would request that the debtor assemble and turnover the asset to the judgment creditor. The assets would need to be evaluated and sold in a commercially reasonable manner.
The judgment entered in Manhattan acts as a lien on real property owned in Manhattan only. A transcript of the judgment must be filed in each of the other counties where the debtor owns real property to place liens outside of the originating county. The lien is good for 10 years and can be extended.
Ms. Nager also appeared in USA Today, discussing judgment enforcement in and out of New York state.
Want to learn more about New York debt collection? Contact Frank, Frank, Goldstein & Nager. We have the experience that pays.
Jocelyn Nager is the only attorney I’ve seen on TV who actually understands New York Collection Law.
The questions could have been phrased a bit better but the information Jocelyn provided was spot on.