Sometimes a good customer slowly becomes slow paying and eventually a non-paying deadbeat. Deciding when to turn an account over to collections is one of your hardest business decisions. Company Y faced this very issue.
When Company Y had had enough it called our firm. Within two business days, we filed Suit against the deadbeat customer and its various alter-egos. We obtained ex parte attachments on all of the customer’s interests in real estate as well as freezing some money in the bank. The deadbeat was only days away from selling one of its properties. Our prompt aggressive and effective legal work resulted in our client’s receiving all monies due it, together with attorney’s fees, in a few weeks.
Generally courts are reluctant to issue ex parte attachments on real estate because fraudulent transfers of real estate are traceable and real estate is generally hard to sell.
However, a court may issue a real estate attachment if a sale is pending or a clear danger exists that if the defendant is notified in advance of the attachment, it will convey or conceal the asset. A court may also allow an attachment if an immediate danger exists that the defendant will damage or destroy the property.
As with all matters of discretion, different judges interpret the attachment standard differently. Some judges will not issue an ex parte attachment under any circumstances. Others will properly issue an ex parte attachment upon a demonstration that the debtor cannot be trusted not to take any action if notified in advance of an attachment motion.