Ronn Steen, Author at Creditors’ Rights and Bankruptcy Attorney

Jesus, Lazarus and Judgment Liens: Is it possible to resurrect an expired judgment lien?

By Ronn Steen, May 29 2014

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In the Gospel of John, we read about the story of Jesus and Lazarus. Jesus and Lazarus were very close friends but Lazarus became sick and died. After being in the grave for four days, Jesus raised Lazarus from the grave. John 11: 1-44. It is a wonderful story of the love of two friends; of power and hope. Jesus’ actions were miraculous, and there was cause of great celebration since what was once dead was alive again. Unfortunately, there is no such miracle that can resurrect an expired judgment lien. Once a judgment lien has expired, it must be recreated. The life of judgment lien is tied directly to the life of the judgment itself. Without a judgment, a judgment lien does not exist. It is well-settled that a judgment lasts only ten (10) years from the date it was first issued. Judgments can be extended or renewed for […]

Battle Royale: Piercing and Reverse Piercing of the Corporate Veil

By Ronn Steen, May 20 2014

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Modern day business can be complicated. Most business is conducted through corporate entities formed to provide a shield to the individuals “behind-the-scenes.” It is not uncommon to have more than one corporate entity created to shield the ultimate party. These corporate entities serve much the same way as the great curtain in “The Wizard of Oz”; they provide a “wall” or “veil” behind which the individuals can safely transact business while appearing to be much larger or greater than they would be without such protection. The difficulty arises when assets are hidden in the corporate structure thus resulting in a shield for an individual debtor against a creditor’s collection efforts. Jurisprudence has long recognized this potential problem, and case law exists to unwind this Gordian knot particularly when closely-held corporations are involved. These remedies are commonly known as “piercing the corporate veil.” To be successful, a creditor would need to prove […]

Creditor’s Bill to Subject: Little Used Remedy for Collections When the Chain is Broken

By Ronn Steen, May 12 2014

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Oftentimes a judgment creditor seems to reach the limits of available collection remedies when an execution is returned as “unsatisfied.” In most creditors’ minds, such a return means that there simply aren’t any assets sufficient to apply towards the outstanding judgment. As a result, most will simply wait a period of time before trying again or give up. Like most states, Tennessee has a remedy that permits a creditor to “dig deeper” into a debtor’s assets and financial history. It is commonly called a “creditor’s bill to subject,” and it can be found at Tenn. Code Ann. § 26-4-101. A complaint for a creditor’s bill to subject is an equitable remedy that can only be granted by a court once it is established that a debtor’s property sought to satisfy the judgment cannot be reached by ordinary process, is insufficient or is not subject to levy and sale by execution at […]

Judgment Enforcement: Are Abstracts Reality for Execution?

By Ronn Steen, April 29 2014

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You’ve reached the end of the actual litigation and received a judgment. Now what? The initial answer is simple: enforcement and collection! There are many steps to take on the path to converting the judgment to cash. Some of the prior articles on this blog illustrate the complexity of converting the judgment to cash, but one of THE most important steps to take is the creation of a judgment lien. This article provides some hints and recommendations on how to subject a judgment debtor’s assets to a judgment lien. The Tennessee Rules of Civil Procedure provide general insight into this process. Rule 69 sets forth the various ways to execute on a judgment. At first blush, these rules seem complete yet there are specific statutes that should also be considered to make sure the creditor is fully encumbering a debtor’s interests. The general belief among most creditors is that recording […]

“Comfortably Numb”: Five Pink Floyd Songs relating to Creditors’ Rights Issues

By Ronn Steen, April 14 2014

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First, let me state this disclaimer: Each of the following songs by Pink Floyd are copyright-protected. As a result, to avoid infringement on any marks or protected works, no artwork or song links are included. Sorry, you’ll have to dust off your LP’s, CD’s or digitally stored music library to listen to these songs. Second, you are undoubtedly wondering how in the world the music of Pink Floyd relates to Creditors’ Rights issues. Actually, they don’t. I just wanted to grab your attention. Now that I have it, here are five things issues that you should be wary of when preparing or drafting loan documents in Tennessee. It is very easy to become “comfortably numb” to these issues over time since much of the financial process becomes rote. “Us and Them” (The Dark Side of the Moon 1973): UCC and Real Estate Title Searches. It is essential to spend […]