Injunctions And Restraining Orders Prevent Debtors From Hiding Assets
Often, a debtor is aware a creditor has a judgment and may take steps to transfer or hide assets or sell them before a judgment is taken or before efforts to attach assets commence. As such, requesting injunctive relief from the court can assist a creditor in a collection of a debt. For example, injunctive relief is available to prohibit the sale of assets that would amount to liquidation of collateral in which irreparable harm would result.
Setoff is a common remedy that is historically available to bank creditors but is also used by other creditors where the debtor may have a general account, or other credit that arose in the course of dealings, and setoff may be appropriate for the payment of such debt. It is important to note the creditor must perform some overt act that demonstrates setoff.
We also invite you to contact us with questions or concerns about your case.