Can a corporation get out of paying a judgment merely by shutting down and opening a new business name but ?

Can a corporation get out of paying a judgment merely by shutting down and opening a new business name but maintaining the same products/services and same address as before? These little scammers in TX are doing that to me. They haven't paid on a judgment that they have owed me (in AZ) for 5 years now. I just renewed it and it's over $1,000. Thank you.


I don't think they can. In fact, I'm going to write to the judge in my case and ask that he add the new corporation name to my list of defendants/debtors. Thanks. :)

Update 2:

They "dissolved" about a month after my judgment was entered/signed by the judge. Thank you guys.

1 Answer

  • Anonymous
    1 decade ago
    Favorite Answer

    A corporation or company rather is considered a person, not a physical person but a juridic person, who can do business, if a business ends then the property and belongings are auctioned off to pay the debtors, if the company opens under a new name then that is a new company or person and has nothing to do with the past business or businesses .

    However if you can prove that the new business is the same as the old business then the obligations of the old business can be charged to the new one but only if you can prove that the old business changed names to avoid it´s obligations and debts.

    Lic.Gregory Kearney Lawson.

  • 1 decade ago

    A corporation is a separate legal entity from it's owners, and carries it's own liabilities. If the corporation declares itself insolvent and dissolves, it's positive assets are to be used to resolve any outstanding liabilities which would include judgments. However, that would be providing that the assets are liquidated, and unencumbered. If the new corporation was established with the assets from the first, and is held in the same capacity of the first, it may be arguable that it assumed the liabilities of the former corporation, or is at least not entitled to those assets because the liabilities from the first corporation were not settled. Find out how the corporation was dissolved, by contacting the secretary of state where the corporation was formed, in some states there has to be a declaration of insolvency, or an action notice to show the intent to dissolve. At this point, the only thing you really can do is link the corporations to each other, and attach the judgment to the new corporation as well, but that may cost more than the judgment is worth.

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