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Consistent
with its reputation as the leading commercial venue of the World, New York liberally protects the rights of creditors.
Among other things, the doctrine of caveat emptor still prevails, subject to certain exceptions. New York provides
a broad assortment of procedural tools, such as restraining orders, temporary injunctions, writs of attachment and bonding
requirements, for preventing the pretrial frustration of a subsequent judgment. New York also provides a number
of different mechanisms for the restraint and recovery of assets of judgment debtors possessed by third-parties, and for
otherwise voiding fraudulent transfers of assets. Under New York's Business Corporation Law, judgment creditors
may pierce the corporate veil, and pursue the personal assets of a corporation's directors and officers in cases of loss
or waste of corporate assets due to neglect of, failure to perform, or other violations of, the duties of such directors
and officers.
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Property Execution Laws
Subject
to certain limitations with regard to the support of dependents, New York permits the garnishment of 10% of a judgment
debtor's income, provided that the judgment debtor's weekly earnings exceed thirty times the national hourly minimum wage,
and that the amount to be withheld does not exceed 25% of the judgment debtor's weekly disposable income. Judgments
may also be executed by the levy, seizure and sale of nonexempt real and personal property.
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