I sold a customer 72k in goods (unsecured). The customer was not
paying their invoices so I took legal action against the customer. I
won a summary judgment for 85k on March 21, 2003. Money was found in
one of their operating accounts and the sheriff issued their bank an
order to freeze the funds for 10 days. On the 10th day we were to
receive those funds (May 1, 2003) the customer went in to voluntary
bankruptcy and the money remains in the account in limbo.

Where does that leave me ….

Do I fall back into the unsecured creditors group or does this elevate
me to some other creditor status.

This is in NJ.

Thanks in advance.

Tom

Tom:

It depends on whether the NJ court rules allow the imposition of
a lien on garnished funds. (I practice in Maryland, and don't
know NJ law in this regard.) Additionally, you may want to check
with a local bankruptcy attorney to see if your judgment operated
as a lien on any of the debtor's real property or other assets.

--
Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@erols.com *
* http://www.erols.com/lawyer *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only.
It isn't meant to be legal advice and you shouldn't treat it as
such. If you want legal advice, speak with a local lawyer
familiar with your state's laws who can review *all* of the facts
and the law applicable to your situation.
************************************************** ***************


"TEM" <tom@mckeons.com> wrote in message
news:a4f561a9.0307081006.2fb84768@posting.google.c om... I sold a customer 72k in goods (unsecured). The customer was
not paying their invoices so I took legal action against the
customer. I won a summary judgment for 85k on March 21, 2003. Money was
found in one of their operating accounts and the sheriff issued their
bank an order to freeze the funds for 10 days. On the 10th day we were
to receive those funds (May 1, 2003) the customer went in to
voluntary bankruptcy and the money remains in the account in limbo. Where does that leave me .. Do I fall back into the unsecured creditors group or does this
elevate me to some other creditor status. This is in NJ. Thanks in advance. Tom

Hi Brett,

Thanks for responding.

Of the two points you made; 1)a lien on garnished funds and 2)a lien
on any of the debtor's real property or other assets.

What would either point allow me to do or what position would I have
in the Chapter 11 reorg.

Thanks

Tom










"Brett Weiss" <lawyer@erols.com> wrote in message news:<l5OdnZeCS5LCrZaiXTWJiA@comcast.com>... Tom: It depends on whether the NJ court rules allow the imposition of a lien on garnished funds. (I practice in Maryland, and don't know NJ law in this regard.) Additionally, you may want to check with a local bankruptcy attorney to see if your judgment operated as a lien on any of the debtor's real property or other assets. -- Brett ************************************************** *************** * Personal Injury/Malpractice Bankruptcy * * * * BRETT WEISS, P.C. * * Attorneys at Law * * Maryland, D.C. and Federal Bars * * lawyer@erols.com * * http://www.erols.com/lawyer * * * * Small Business Estates & Estate Planning * ************************************************** *************** The Small Print: This response is for discussion purposes only. It isn't meant to be legal advice and you shouldn't treat it as such. If you want legal advice, speak with a local lawyer familiar with your state's laws who can review *all* of the facts and the law applicable to your situation. ************************************************** *************** "TEM" <tom@mckeons.com> wrote in message news:a4f561a9.0307081006.2fb84768@posting.google.c om... I sold a customer 72k in goods (unsecured). The customer was not paying their invoices so I took legal action against the customer. I won a summary judgment for 85k on March 21, 2003. Money was found in one of their operating accounts and the sheriff issued their bank an order to freeze the funds for 10 days. On the 10th day we were to receive those funds (May 1, 2003) the customer went in to voluntary bankruptcy and the money remains in the account in limbo. Where does that leave me .. Do I fall back into the unsecured creditors group or does this elevate me to some other creditor status. This is in NJ. Thanks in advance. Tom

Thanks again for your help.

At the moment, I would say I have a perfected lien. The documentation
was filed after I was awarded a summary judgment. At which time the
sheriff presented the customers bank a court order to freeze the 85K
in funds in their operating account. In NJ, there is a 10 mandatory
waiting period before I can access to the funds.

The problem is the 10th day, the day I was to receive those funds, the
customer filed chapter 11 (automatic stay) and the money remains there
today. The customer has filed an adversary proceeding to remove the
lien. My current lawyer suggested that I just allow them to eliminate
the lien. I get the impression they are not sure themselves.

My problem now is determining my rights. Some argue this is
considered a preferential payment and I must release those funds and I
become an unsecured creditor. Someone suggested that that money
should be given to me now. Yet, others have suggested since I have
the Judicial lien, yes the money goes back to the customer and I
become a secured lender. Also, I found the following article adding
additional confusion.

http://www.newmansimpson.com/publication.htm#HOW%20TO%20PRESERVE%20A%20JUDGMENT %20LIEN

What's your take?








"Brett Weiss" <lawyer@erols.com> wrote in message news:<0WedndpN_Z9UspGiXTWJgA@comcast.com>... If a lien had attached and was perfected (meaning you took whatever steps were necessary to make it binding), you would be a secured creditor, rather than an unsecured creditor, and likely to receive some or all of the money you are owed. -- Brett ************************************************** *************** * Personal Injury/Malpractice Bankruptcy * * * * BRETT WEISS, P.C. * * Attorneys at Law * * Maryland, D.C. and Federal Bars * * lawyer@erols.com * * http://www.erols.com/lawyer * * * * Small Business Estates & Estate Planning * ************************************************** *************** The Small Print: This response is for discussion purposes only. It isn't meant to be legal advice and you shouldn't treat it as such. If you want legal advice, speak with a local lawyer familiar with your state's laws who can review *all* of the facts and the law applicable to your situation. ************************************************** *************** "TEM" <tom@mckeons.com> wrote in message news:a4f561a9.0307090305.3f5e6fef@posting.google.c om... Hi Brett, Thanks for responding. Of the two points you made; 1)a lien on garnished funds and 2)a lien on any of the debtor's real property or other assets. What would either point allow me to do or what position would I have in the Chapter 11 reorg. Thanks Tom "Brett Weiss" <lawyer@erols.com> wrote in message news:<l5OdnZeCS5LCrZaiXTWJiA@comcast.com>... Tom: It depends on whether the NJ court rules allow the imposition of a lien on garnished funds. (I practice in Maryland, and don't know NJ law in this regard.) Additionally, you may want to check with a local bankruptcy attorney to see if your judgment operated as a lien on any of the debtor's real property or other assets. -- Brett ************************************************** *************** * Personal Injury/Malpractice Bankruptcy * * * * BRETT WEISS, P.C. * * Attorneys at Law * * Maryland, D.C. and Federal Bars * * lawyer@erols.com * * http://www.erols.com/lawyer * * * * Small Business Estates & Estate Planning * ************************************************** *************** The Small Print: This response is for discussion purposes only. It isn't meant to be legal advice and you shouldn't treat it as such. If you want legal advice, speak with a local lawyer familiar with your state's laws who can review *all* of the facts and the law applicable to your situation. ************************************************** *************** "TEM" <tom@mckeons.com> wrote in message news:a4f561a9.0307081006.2fb84768@posting.google.c om... > I sold a customer 72k in goods (unsecured). The customer was not > paying their invoices so I took legal action against the customer. I > won a summary judgment for 85k on March 21, 2003. Money was found in > one of their operating accounts and the sheriff issued their bank an > order to freeze the funds for 10 days. On the 10th day we were to > receive those funds (May 1, 2003) the customer went in to voluntary > bankruptcy and the money remains in the account in limbo. > > Where does that leave me .. > > Do I fall back into the unsecured creditors group or does this elevate > me to some other creditor status. > > This is in NJ. > > Thanks in advance. > > Tom

My take is that you need to speak with a NJ bankruptcy attorney
who knows the NJ law (which I don't) and can tell you what you
can do. <g>

--
Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@erols.com *
* http://www.erols.com/lawyer *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only.
It isn't meant to be legal advice and you shouldn't treat it as
such. If you want legal advice, speak with a local lawyer
familiar with your state's laws who can review *all* of the facts
and the law applicable to your situation.
************************************************** ***************


"TEM" <tom@mckeons.com> wrote in message
news:a4f561a9.0307100512.2683a5bc@posting.google.c om... Thanks again for your help. At the moment, I would say I have a perfected lien. The
documentation was filed after I was awarded a summary judgment. At which
time the sheriff presented the customers bank a court order to freeze
the 85K in funds in their operating account. In NJ, there is a 10
mandatory waiting period before I can access to the funds. The problem is the 10th day, the day I was to receive those
funds, the customer filed chapter 11 (automatic stay) and the money
remains there today. The customer has filed an adversary proceeding to
remove the lien. My current lawyer suggested that I just allow them to
eliminate the lien. I get the impression they are not sure themselves. My problem now is determining my rights. Some argue this is considered a preferential payment and I must release those
funds and I become an unsecured creditor. Someone suggested that that
money should be given to me now. Yet, others have suggested since I
have the Judicial lien, yes the money goes back to the customer and
I become a secured lender. Also, I found the following article
adding additional confusion.
http://www.newmansimpson.com/publication.htm#HOW%20TO%20PRESERVE%20A%20JUDGMENT %20LIEN What's your take? "Brett Weiss" <lawyer@erols.com> wrote in message
news:<0WedndpN_Z9UspGiXTWJgA@comcast.com>... If a lien had attached and was perfected (meaning you took whatever steps were necessary to make it binding), you would
be a secured creditor, rather than an unsecured creditor, and
likely to receive some or all of the money you are owed. -- Brett
************************************************** *************** * Personal Injury/Malpractice
Bankruptcy * *
* * BRETT WEISS, P.C.
* * Attorneys at Law
* * Maryland, D.C. and Federal Bars
* * lawyer@erols.com
* * http://www.erols.com/lawyer
* *
* * Small Business Estates & Estate
Planning *
************************************************** *************** The Small Print: This response is for discussion purposes
only. It isn't meant to be legal advice and you shouldn't treat it
as such. If you want legal advice, speak with a local lawyer familiar with your state's laws who can review *all* of the
facts and the law applicable to your situation.
************************************************** *************** "TEM" <tom@mckeons.com> wrote in message news:a4f561a9.0307090305.3f5e6fef@posting.google.c om... Hi Brett, Thanks for responding. Of the two points you made; 1)a lien on garnished funds and
2)a lien on any of the debtor's real property or other assets. What would either point allow me to do or what position
would I have in the Chapter 11 reorg. Thanks Tom > "Brett Weiss" <lawyer@erols.com> wrote in message news:<l5OdnZeCS5LCrZaiXTWJiA@comcast.com>... > Tom: > > It depends on whether the NJ court rules allow the
imposition of > a lien on garnished funds. (I practice in Maryland, and
don't > know NJ law in this regard.) Additionally, you may want
to check > with a local bankruptcy attorney to see if your judgment operated > as a lien on any of the debtor's real property or other assets. > > -- > Brett > >
************************************************** *************** > * Personal Injury/Malpractice Bankruptcy * > * * > * BRETT WEISS, P.C. * > * Attorneys at Law * > * Maryland, D.C. and Federal Bars * > * lawyer@erols.com * > * http://www.erols.com/lawyer * > * * > * Small Business Estates & Estate Planning * >
************************************************** *************** > > The Small Print: This response is for discussion purposes only. > It isn't meant to be legal advice and you shouldn't treat
it as > such. If you want legal advice, speak with a local lawyer > familiar with your state's laws who can review *all* of
the facts > and the law applicable to your situation. >
************************************************** *************** > > > "TEM" <tom@mckeons.com> wrote in message > news:a4f561a9.0307081006.2fb84768@posting.google.c om... > > I sold a customer 72k in goods (unsecured). The
customer was not > > paying their invoices so I took legal action against
the customer. I > > won a summary judgment for 85k on March 21, 2003.
Money was found in > > one of their operating accounts and the sheriff issued their bank an > > order to freeze the funds for 10 days. On the 10th day
we were to > > receive those funds (May 1, 2003) the customer went in
to voluntary > > bankruptcy and the money remains in the account in
limbo. > > > > Where does that leave me .. > > > > Do I fall back into the unsecured creditors group or
does this elevate > > me to some other creditor status. > > > > This is in NJ. > > > > Thanks in advance. > > > > Tom

Thanks Brett.

The endgame seems to be that even thou I had the money bottled up,
It's considered a preference payment and goes back into the reorg. It
also will put me back in as a unsecured creditor.

Thanks again.