Debts owed to Your Debtor can be Reached in Satisfaction of a Debt-Reach and Apply
I am frequently asked whether a third party can be sued for a debt or part of a debt when money has been provided to the third party as part of another transaction. My answer is sometimes, yes. In a recent case litigated by Cellai Law Offices, P.C. for a multinational corporation, we were enforcing a promissory note in the Superior Court for the multinational corporation. The debtor had filed a lawsuit in another Massachusetts Superior Court where he was seeking money from a third party. Cellai Law Offices, P.C. obtained an order from the Court which provided that should the debtor recover on his lawsuit, the first funds earmarked for the debtor were to be paid to the multinational corporation. Recently, the debtor won his case and the monies are available to satisfy the debt.