judgement question

when you have a judgement against your corporation, and get a summons to go to court and give a finanical statement, can thay ask for personal info of assets, like boats,cars,stocks,bonds, personal checking accounts and saving accounts, or can thay only get info on the corporation, i had made payment arrangements with them, then sept came along and buy the end of oct, i was out of work, and most of my construction equipment was repoed, so i could not pay the judgement, can thay attach to my personal stuff. this is in michigan

Dear mavman46,

Are they examining you or the corporation. If they are examining the corporation they cannot peer into your personal financial records. They can; however, look at all of the corporations books and if they determine that you were conveying assets (money) from corporate accounts into your personal accounts, they will have no problem getting an order to examine you at a later date and look at all of your assets in an eventual move to pierce your corporate viel and levy upon your assets to satisfy the judgment.

If you have conducted the business of your corporation in accordance with the law, you will not have any problems.


[email]JASON@LEGISLATOR.COM[/email]

well the summons is in the company name, there was some papers stapled to the summons stating that i need to bring mortage papers on the house,cares,trucks,bank accounts that are in my name, but that part was just something thay typed up, the judge did not sign these papers, can the company file bank ruptcy and get rid of this problem, thanks so much

mavman46,

Yes, the corporation may file for bankruptcy. If you comingled your personal funds with those of the corporation; however, you could still be subject to enforcement actions if the creditor is successful in piercing your corporate viel.

If the creditor attached a list of records that were subject to the subpoena, you need to bring them. You can refuse to show them to the creditor; however, ask to be heard in front of a judge, they will bring you into a court room and you can argue that the records have no bearing in the examination. If the court agrees they won't get to see the records. More likely than not, they will allow inspection of the records to determine if you have comingled personal funds with those of the corporation in which case the judgment creditor will have a right to pierce the corporate viel and collect from you.


[email]JASON@LEGISLATOR.COM[/email]

jason, thanks. the only thing is i would remove money from the company account and put it in my wifes account to pay bills at home, i dont know any other way to do it, my accountant set up the corp for tax purposes i dont know anything about corporations till i got this suit. i had no attourney so thay entered a default judgement against the corp, when tha went to enforce the judgement thay locked up my accounts at the bank even the personal accounts and my wifes also, i called the court and the judge made them remove it. thay came to the house to enforce the writ of exacution and all my trucks were in my name, so thay left. all my equipment is in my name and i had owned this stuff before i had the corporation, so now thay want this info, i had made payments as agreed but with this war going on i dont have any work no one is building houses like before, so i could not make any payments, we had to apply fore food stamps last week i have five kids and the only thing i have left is my dump truck but its my personal truck. so i have no idea as what to do. randy

Well be prepared to have your corporate viel pierced and your personal assets levied upon. Why did you even bother to incorporate your business?

Based on the information you've just given about using the corporation's money to pay bills at home, you can kiss that corporate protection goodbye.

And after the viel is pierced the judge will be more than happy to let them levy upon your personal accounts.



[email]JASON@LEGISLATOR.COM[/email]

[bigun]

Randy,

I don't think the issue is quite as cut and dried as Jason suggest. But, you desparately need legal counsel to protect yourself. I've seen a couple of your post and I gotta tell you, a bk of the corp and a personal bk may well be the best option available to you.

well i wish i could get councel but i have not worked in two months, no money. is there anything i can do on my own thanks randy