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Corp small claims

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realstar08

Junior Member
What is the name of your state? IL
I closed my business down July 1st 2007. It was a s-corp. I just received a summon from a local Insuance company that filed a small claims against me, ($1500) for back insurance dues. I have no money from the business and no assets. Do I even need to show up in court? Should I go and plead it out?

Please help!
 


dcatz

Senior Member
Do I even need to show up in court?

Are you asking if the S-Corp. will immunize you personally now? The answer is no.

Should I go and plead it out?

You don’t mention anything about a defense. That’s kind of an important consideration. If there isn’t one, the chances are good that they’ll get a judgment either way.

I have no money from the business and no assets.

An IL judgment is good for 20 years and earns post-judgment interest at 9% APR. They’re gambling that your present circumstances will change. In the meantime, a recorded judgment will make every type of credit extension more costly, if you can get it at all.

If you don’t have a defense, one thought is to try to negotiate a resolution (payment plan) that will allow you to pay them according to your ability and avoid the judgment. You want to avoid the judgment. Talk to them. Give them the information that they need to make a favorable decision.
 

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