Judgement on closed Corp naming shareholder who was discharged in BK Help

[blel0906]

Husband and I filed personal chapter 7 bk last year, the BK was discharged 12/2010.

Long story short, we had a business it was the business debts that were personally garanteed that forced us into bk..We did not file bk on the corp..we closed it down a full year before filing..It was a small business with no assets the few assets we had were liquidated so we could pay our employees final wages and we took care of some tax issues. The one lawsuit names my husband and the corp. Was told even if a creditor wanted to go after the now defunct business we were personally discharged of the debt because we named them personally..

The week we were filing, I think in July we were served with a lawsuit from the creditor..Never heard another word..today we got a notice in the mail that a judgement had been issued on March 9, 2011 with a fact finding sheet.

I checked online with the Clerk of courts on 10/29/2010 volunary dismissal was entered then on 2/24 a motion for default was entered..

So how do I respond to this or what do I do? Should I just send the requesting attorney a copy of the discharge ignoring what was requested, ignore the notice all together (It was mailed to our OLD address home we haven't lived in for over a year and forwarded to our current address)

I'm confused on judgements..I've heard they are discharged and I don't have to do anything and I've heard I have to petition the court to have the judgements vacated

[AngelinaCat]

If the judgment was in place before you filed, then you have to make a motion to the Civil Court to have the judgment vacated. If this creditor has gone to court and won a default judgment against you AFTER you filed BK, they could possibly then be breaking the law. But I am not an authority on small businesses. We were a personal CH7.

If you had an attorney handle your BK, you need to give him/her a call. You may need to pay and hour or two worth of time to to have the attorney write a cease and decease letter to this creditor, because once you are discharged and closed, your case is usually finished for them and this might be considered a new action.

Good luck!

[AngelinaCatHub]

If you had a Judgment, it is not automatically discharged, but can be by way of your discharge papers. If this happened AFTER you filed, you are clean and clear. From the wording, they dismissed their suit and Judgment. It is easy to go online to Clerk of Court (if your County has that service) and find out if you have a Judgment or not. It will save you money in lawyer doing that.

The Judgment will not hold water as you divested your stuff on exempt stuff like paying the crew and bills. You listed them right? You stated that so they whether they got word or not are out of luck.

We still get dunn's from bill collectors and simply send a copy of discharge then bye. You are fine, but you might question your lawyer but AFTER you check Courthouse. 'Hub

[blel0906]

Thanks I'll repost in the right area..But to answer..the suit was filed in July we filed BK in August went to the creditors meeting in September and were discharged in December. The clerks records show the suit was dismissed and nothing until February when they entered a motion for default and the default was issued in March...so confusing!

[AngelinaCat]

If the suit was dismissed because of the BK, and the creditor then came in and pressed for a default judgment, then I think you have an actionable case. You need to talk to your attorney.

My best~~~

[AngelinaCat]

Hi blel0906:

I saw you had reposted your original post in the Small Business board, so rather than having two threads going, I moved your original thread to the Small Business board, and removed the duplicate post.

Good luck to you~~~

[justbeach03]

I know this post is over a year old, but wanted to know the outcome from the OP. Was the judgement on you personally or the business?