Debtors relocating their business operations out of Massachusetts have an obligation to pay the outstanding balances they incurred while in the Bay State. As noted by PocketSense, you may pursue a legal action to transfer your suit to the courts of the state where a debtor relocates.
The Uniform Enforcement of Foreign Judgments Act allows a legal action initiated in one state to follow debtors after they move to another state. Courts situated in the District of Columbia, Massachusetts and 46 other states record judgments issued from the court in your home state.
Legal recourse through a state that does not follow UEFJA
Connecticut and New York may require you to file a new legal action to enforce collections of an out-of-state debt. Before initiating a court procedure, you may need to discover new information about a debtor who has moved.
To do so, you may obtain an information subpoena to learn about a debtor’s property and assets, according to NYCourts.gov. New York State law, for example, allows serving this legal document to an employer, a bank or another corporation that may know the details of a debtor’s assets.
The statute of limitations may apply
After obtaining information regarding a debtor’s new location and business interests, you may face time restrictions when filing a legal action to collect on an unpaid obligation. The statute of limitations for collecting debts generally expires within 10 years; renewing a judgment, however, may allow you to continue pursuing a legal action until debtors satisfy their obligations.
Commercial credit issued while conducting business in the Bay State may no longer serve a purpose for a debtor after moving away. You have a right, however, to collect unpaid invoices, although it may require an additional legal action to retrieve money from a debtor that moved to another state.
