How can I collect on a judgment against a client with no assets?

Full question:

I am a licensed general contractor. I performed work on a duplex in 2003. I got paid for services on the first unit. I started work on the second unit and did not get paid when I asked for a progress check. The client sued me and lost. I won a judgment of $8500.00 for damages and $3500 for attorney fees in the court of Washington county. The client filed for an appeal and now the court has denied his appeal. 5 years after court proceedings started. The judgment is accruing interest @ 9%. The client has no job and has no clear assets that I can find. The building I performed the work in is held in a corporation. The corporation lists his 90 year old mother as the president and treasurer. My former client has tax liens against him in California. My former client lives in one side of the duplex with his mother and sister. He wrote checks to me on the first unit (he acted in the interest of the corporation). To my question, given the circumstances, being that the only income this guy has is social security and rental income from this property, a property that is held in his senile mothers name (dummy corporation). How can I collect on this judgment? I have an insurance company attorney representing me on the liability side but I do not have anyone to go after this guy and collect if collection is possible. I suspect that the corporate veil could be lifted from the corporation and the rental income could be garnished. What are my options?

• Category: Judgments
• Date: 04/07/2025
• State: Oregon

Answer:

To collect on your judgment, consider the following options:

1. **Fraudulent Conveyance**: If your former client transferred assets to avoid paying debts, you might have grounds for a fraudulent conveyance claim. Under the Uniform Fraudulent Transfer Act, a transfer can be deemed fraudulent if made with the intent to hinder, delay, or defraud creditors or if the debtor did not receive equivalent value in exchange and was facing financial difficulties.

2. **Piercing the Corporate Veil**: You may be able to hold your former client personally liable by lifting the corporate veil, especially if the corporation is merely a façade. This requires demonstrating that there is no separate identity between the individual and the corporation.

3. **Debtor Examination**: Oregon law allows for a debtor examination to uncover any assets your former client may have. You can file a motion to require him to appear in court and answer questions under oath about his property and finances. This can help you find assets that can be applied to the judgment (Oregon Revised Statutes § 18.265).

4. **Written Interrogatories**: You can serve written interrogatories to your former client regarding his financial situation. Failure to answer truthfully can lead to penalties (Oregon Revised Statutes § 18.270).

5. **Garnishment**: If you identify income sources, such as rental income, you may be able to garnish those funds to satisfy your judgment.

Consult with an attorney who specializes in collections to explore these options further and determine the best course of action.