Tammy judgments are hard to collect when the company is becoming insolvent.  Like someone said if the company is solvent and likely just trying to overcome a hurdle, the threat of a lawsuit would be enough.  Going to court and obtaining a judgment would put a cloud on their business credit report which could affect their ability to obtain a credit line for their business and therefore make it even harder to operate.  A good business would definitely try to avoid that at all costs.