Restraining Notices, Subpoenas, and Asset Discovery
Identifying, Restraining, and Uncovering Assets through New York’s Judgment Enforcement Tools
Judgment enforcement begins with information. Before assets can be turned over or applied to a judgment, they must be identified, located, and legally restrained. New York’s enforcement law provides powerful tools for freezing assets and compelling disclosure, but these tools require careful use and timing.
I approach asset discovery methodically. The goal is to understand the debtor’s financial footprint, determine where assets may be held, and apply the procedural mechanisms that prevent those assets from disappearing. Because I maintain a focused caseload, these early investigative steps receive close and continuous attention.
Restraining Notices: Freezing Assets Under CPLR § 5222
A restraining notice is one of the most effective tools for preventing a debtor from moving or dissipating assets. Once served on a bank, employer, or third party, it immediately freezes any property belonging to the debtor that is in that party’s possession. Restraining notices are particularly useful for:
- bank accounts and brokerage accounts,
- wages and commissions,
- accounts receivable owed to the debtor’s business,
- property held by agents, contractors, or related entities.
Information Subpoenas: Compelling Answers and Documents
When a creditor needs insight into the debtor’s finances, an information subpoena is often the starting point. It requires a debtor, or a third party with relevant knowledge, to answer written questions under oath and produce documents. Information subpoenas help reveal:
- where the debtor banks,
- current employment or income sources,
- real estate interests,
- business holdings or partnerships,
- receivables or outstanding contracts,
- transfers to family members or related entities.
Subpoenas for Documents and Depositions
For more detailed financial analysis, creditors may issue:
- subpoenas duces tecum, requiring the production of documents, and
- subpoenas ad testificandum, requiring testimony under oath.
Using Discovery to Build an Enforcement Strategy
Asset discovery is not merely a search for bank accounts. It is a broader investigation into how the debtor earns, stores, and transfers value. Through a careful review of financial records, business documents, communications, and public filings, it becomes possible to identify:
- concealed or commingled funds,
- insider transfers,
- undercapitalized companies,
- patterns of evasion,
- successor entities,
- assets held in trust for the debtor’s benefit.
When Debtors Attempt to Evade Discovery
Some judgment debtors refuse to answer subpoenas, provide incomplete information, or attempt to delay the process. New York law provides remedies for noncompliance, including:
- motions to compel,
- contempt proceedings,
- orders assessing costs or sanctions,
- adverse inferences,
- additional discovery directed at third parties.
How Restraining Notices and Discovery Work Together
These tools operate in sequence. Discovery identifies assets; restraining notices prevent their dissipation; turnover proceedings recover them. Each tool strengthens the next, creating steady, controlled pressure on the debtor until compliance is achieved. An effective enforcement strategy coordinates these tools deliberately rather than using them in isolation.