Bank going for summary judgment against former company

[AbbeyA]

In short ... dh had a small business fail in early 2009, it was dissolved and no longer in business. All partners of the business filed personal bk and were discharged from personal guarantees of business debt. The business has no assets to recover at this time.

The banks that held business loans are seeking summary judgments against the business. Does my dh, as the former business owner need to appear or do anything since the business is dissolved and there are no assets to recover? Our bk attorney did not feel it necessary to bk the company since there were no assets and it was dissolved and the doors closed. We have not spoken to our bk attorney about this current matter, should we seek council or do we not need to worry about it since the personal guarantee on the debt is now discharged?

We received notice of the filing for summary judgment since dh was one if the business owners, but he is not listed as a plaintiff, only the business name.

Thanks for any information you can provide.

[justasking]

Well, you definitely need to respond. The worst thing you can do with a summary judgement is not respond ... then they may get a default OK to come after you in whatever form they want.

Seems to me you, probably thru an attorney, need to communicate to the bank that this business was dissolved and closed, even though it did not go thru bk. They may think it is still open.

That might be enough to stop them ... might now. Good idea to call several different attorneys and thru their "free consultation" ask them how they would deal with it.

HTHs

[AbbeyA]

Well, we spoke to an attorney who has been advising us during this process - he is not our bk attorney. He said that since we have been discharged of the debt and the judgment is for the business only, we don't need to respond. He actually said that if we did respond in any manner, like having him send a letter with the dissolution papers etc., it will show that there is someone/some "activity" left with the former business.

In addition, there is a signed order from a judge that states the lawsuit is ONLY against the company and not the business owners since we have been discharged of personal liability for the debt.

So his advice is to not do anything about it. Thoughts???

[keptdigging]

Listen to your attorney and move on. I've followed your AP thread and you've done all you can to get the bank to understand. There is no company... so act like there's no company.