What happens when a company owes you money but does not have enough assets to pay you? How can you enforce collection of the debt when the company is insolvent? For example, a buyer sends money to a company and receives damaged goods in return, or the buyer receives nothing at all. Or, a creditor might have loaned money to a company that is in default on repayment. If the debtor company has no assets in the company name, such as real estate or bank accounts, or if the company is out of business, suing the company and getting a judgment against them wont result in repayment of the debt. Maybe the owners of those companies, though, do have enough assets to repay the debt.
If you are owed money and the individual or company who owes it (the soon to be “defendant”) has stopped responding to your emails or calls, or has told you they refuse to pay, then you must take legal action to get the money back
Say your business decided to lease space within a plaza or inside a building where other businesses operate. You are in the process of negotiating the terms of your lease with your landlord. An attractive feature of leasing at this location is that there are no other businesses on the premises who sell the same product, or offer the same service as you. If you sell electronics, you may want to negotiate with the land lord to add a clause in the lease where the landlord agrees not to lease within that building to another tenant who sells electronics or offers.
How does the homestead exemption protect people’s assets? Say you own a home which is your primary residence which is worth $500,000.00, and has a first mortgage of $250,000.00 with no other liens. That means you have $250,000.00 of equity in your home, and if you sell your home you will receive $250,000.00 (less closing costs, brokers’ fees, etc.).