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Questions about debtor exam and creditor asking to bring financials to exam help plea

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fish4hc

Junior Member
What is the name of your state (only U.S. law)? CA

My wife was sued for a breach of lease on a commercial building for one of our businesses. We use to have multiple businesses but all but one closed down. That one we still have is an llc. The business that was at the location of the breach of lease was almost same name of current llc business but was sole prop. under my wife. She personally guaranteed the lease and used dba but again not the llc. The llc is my wife, myself and one other.

The landlord has since received a judgement in the name of my wife. Now they are requesting debtors exam but requesting we bring all financial reports, accounts, etc. for the llc. Are they just reaching or does my wife legally have to bring this info. The llc is not named here and has nothing to do with this case. I can see them asking for paychecks and her profits from that business as well as mine but not all financials for the business. Also they are now threatening a till tap but again, i dont see how they could do that when the llc was not named in the judgment, just my wifes name. Am I wrong here?
 


dcatz

Senior Member
You’re right, but will that help your wife at the time of the hearing?

How was your wife named in the Order to Appear (sub-caption and lines 1 and 4)? As the “judgment debtor” or as, for example, “custodian of records”? Have you tried discussing the name similarity with counsel for the judgment creditor in advance of the formal appearance, rather than wait for the disagreement that you can feel reasonably confident will come? Aside from your wife testifying under oath, there is nothing hallowed about the formal hearing and being able to explain to the hearing officer that the judgment creditor had advance notice may help if/when it does arise. If the hearing officer is not convinced, your wife could be ordered back with the requested documents.

Worse still is that the judgment creditor could proceed with what would be a wrongful execution. It behooves you or a legal representative to make the effort to clarify things for the judgment creditor.

As an aside to the wise, your wife should take a minimum of personal assets (cash, jewelry etc.) to the hearing. A creditor who appears armed with a “turnover order” can seize non-exempt assets to apply to the judgment. Especially disgruntled creditors have been known to do it.
 

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