Does this mean the END of the creditor attempting to collect? Went to 341 (personal BK& non-consumer no-assets), just waiting for the discharge/ closed in May. The trustee abandoned all business assets, so the CA garnished the biz account.
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Unless the biz is still going, then yes. If the biz is still going, then no.Last edited by HHM; 04-12-2012, 06:34 AM. -
No business is closed. There I a judgement lien hanging out there on the business, but it was listed on bk. can they come back and ask for another fact finding- or is that it!?Comment
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Assuming the business is either a corporation or a LLC, you filed bk your business entity did not. A creditor of the business can still try to collect from the business but. . . If the business is dead, who cares if a creditor tries to collect? It is chasing a "dead person". . . let it spin its wheels as it cannot collect a dime from you.
Des.Comment
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Assuming a separate business entity (LLC, corporation etc.), they could still do fact finding, e.g. post judgment discovery, but it is unlikely.
The only lingering issue would be is if you fraudulently or illicitly took assets out of the corporation while the corporation was insolvent. When a corporation/LLC becomes insolvent, the owners have a duty to the business creditors (it's called being a trustee in assets). So, for example, let's say you are a printing company and the company owns $50,000 worth of various printers. The business has $150,000 in debt. You, the owner, file BK to offload your personal debt and your personal guarantees. But in order to use the tools of trade exemption, you transfer the printing equipment to your name, personally.
Since you didn't "buy" the assets from the business and distribute the proceeds to creditors, and because the business was insolvent at the time, (e.g. liabilities greater than assets), the business creditors could pursue you personally for the value of those assets $50K, because you absconded with them, and because the transfer is a type of fraud, your liability as a trustee in assets of your business, would not be discharged in your case.
Note, the above is very very rare. Generally, when small business goes under and the owner files personal BK, that is the end of it.Last edited by HHM; 04-12-2012, 09:21 AM.Comment
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No nothing like that at all- no absconding. S-corp and we already had a tape recorded fact finding last October. There is a $10,000 court ordered restitution that is due to the business from an employee theft and oil spill claim, but I wont see that for years. They were on the petition and the judge didn't question them at all. But what are the chances that the CA will see that on the petition and go after them?Comment
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oh- when I said "CA" I meant Creditor's Attorney...not collection agency.Comment
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