The question of should creditors renew their New Hampshire attachments is often raised?
In the recent case of Trinity EMS, INC. v. Timothy Coombs, the New Hampshire Supreme Court resolved the issue of what a creditor can do when his judgment lasts longer than his attachment on the debtor’s property.
Under New Hampshire law, a creditor has a right to enforce a judgment for 20 years. One of the ways to enforce the judgment is to obtain an attachment on the debtor’s property and if the debtor sells her property under certain circumstances, the creditor may satisfy his judgment from the proceeds of the sale. However, an attachment under New Hampshire law is only valid for 6 years, leaving the creditor unprotected for potentially 14 years.
In the Trinity case, the creditor’s attorney basically brought a new lawsuit to obtain a new judgment based on the unpaid balance of the existing judgment so the creditor could obtain a new attachment for an additional 6 year period of time. The lower court dismissed the new lawsuit basically asserting the debtor still disputed the original judgment and it was improper to bring a new lawsuit to obtain an attachment.
The New Hampshire Supreme Court sided with the creditors’ attorney, reversed the lower court and found a creditor could bring a new lawsuit for the purpose of obtaining a new judgment for the purpose of obtaining a new attachment.
The Trinity case serves as a reminder for creditors to review the status of their attachments and make a business decision on whether the attachments should be renewed.
To learn more about how to use attachments to protect your business or learn more about your legal rights, contact an experienced and results oriented attorney at the McGrath Law Firm, PA. To make an appointment, call (603) 224-7111 or (800) 283-1380, or visit www.mcgrathlawfirm.com.