Corporate liability

[reynard]

What is the name of your state? California

A small privately held corporation faces a pending lawsuit originating from an employee with a work related injury. The partners-who's business is barely making it and thus unable to pay the settlement-believe that a declaration of bankruptcy and refiling under a different business name will absolve themselves of the liability. Can this be possible?

 

[ALawyer]

Work related injuries by EMPLOYEES are covered under workers comensation, and 99.99% of the time the injured employee has no claim against the business or its shareholder, supervisors or owners.

IF a corporation has negative net worth or can't meet its obligations it can file for bankruptcy. ALL its assets are often sold by the bankrupt estate and nothing prevents the old shareholder from bidding for them, and if he's the high bidder, putting it in a new corporation.