enforceable assets
Definition
Enforceable assets are the property, money, or valuables that a creditor or court can legally seize or claim if you fail to pay a debt or lose a lawsuit. These can include your bank accounts, equipment, real estate, or accounts receivable owed to your business. Not everything you own qualifies, because some assets are legally protected from collection depending on your state's laws.
Example
If a supplier wins a judgment against your business for unpaid invoices, they can go after your enforceable assets like your business bank account or company vehicles to collect what you owe them.
Watch Out
Some personal assets may become enforceable if you signed a personal guarantee on a business loan or contract, which means creditors can come after your personal savings or property, not just your business holdings.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.