businessmen

The attach­ment of prop­erty is a strong weapon when used prop­erly in New York. A busi­ness­man who is hav­ing finan­cial prob­lems decides not to pay for goods that he pur­chased.  If your com­pany is the cred­i­tor, it could take years before he will have to pay. At that time, the funds could be depleted.  One key pro­vi­sional rem­edy that a cred­i­tor can seek is to obtain an attach­ment.  Here, the cred­i­tor can obtain an attach­ment on the bank account and the busi­ness­man would not be able to use the money. Even though the plain­tiff is not able to use or obtain the funds, the busi­ness­man will not have the lux­ury of time and would be more moti­vated to settle.

Attach­ment of prop­erty can have dev­as­tat­ing effects on the busi­ness­man.  Attach­ments can be ordered by the court ex parte, mean­ing that the busi­ness­man will have no notice.  This could cause checks to bounce and dras­ti­cally alter the abil­ity for a small com­pany to con­duct business.

In order to obtain an order of attach­ment, the cred­i­tor would have to show, as per CPLR 6201(a): 1. that \“there is a cause of action\” and that the plain­tiff will prob­a­bly suc­ceed on the mer­its; 2. that at least one of the grounds of attach­ment found in the law exists;  and 3. that the amont asked for in the law­suit exceeds any coun­ter­claims that the cred­i­tor has knowl­edge of.

If an order is granted, it is directed to the sher­riff, not the defen­dant. Some orders are granted with­out notice to the businessman.

If you have a ques­tion about pro­vi­sional reme­dies such as attach­ment of prop­erty in New York, act now and con­tact the Law Office of Fred­eric R. Abram­son at 212–233-0666. Feel free to keep up to date on all New York Busi­ness Law issues by vis­it­ing my blog.

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