Full question:
If the creditor is a corporation in a judgement and then the corporation is dissolved can judgement still be enforced? The judgement originated in Orange County, California and has been recorded in the State of New Jersey under the uniform enforcement?
- Category: Corporations
- Subcategory: Corporate Dissolution
- Date:
- State: New Jersey
Answer:
In California, a dissolved corporation still exists for the purpose of winding up its affairs. This includes prosecuting and defending actions, collecting obligations, and discharging debts (Cal. Corp. Code § 2010). Therefore, a judgment against a corporation does not become void upon its dissolution. The corporation can continue to pursue its rights and obligations, including enforcing a judgment.
Similarly, New Jersey law states that a dissolved corporation continues its existence to wind up its affairs, which includes collecting assets and paying debts (N.J. Stat. § 14A:12-9). The corporation can still sue and be sued as if it had not been dissolved, and any actions against it prior to dissolution do not abate.
In summary, the judgment can still be enforced against the dissolved corporation in both California and New Jersey as it continues to exist for the purpose of winding up its affairs.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.