Coming After My Business

[chiefmojo]

What is the name of your state? New Jersey

I posted this under consumer credit, but I figured I'd post this because it's related to my business also. Please read the original message below and HELP!

Someone help me please. I finally gave in and decided to file for bankruptcy cause I have accumulated about 40K in debt. Now I just received a notice from my old landlord that had a judgement against me. He must have been notified of the bankruptcy and now filed a motion for the judgement to be granted against my business on the grounds that I operated the business from the premises. Do I have to respond to this? If so, what would be the defense. Or do I just have to bankrupt my business?

 

[willingtocope]

Is the business incorporated, if so how? C Corp is an entirely separate enitity, and a judgement against you should not be transferable. On the other hand, if you were running as a Sole Proprietor, you're both the same thing.

Talk to a BK attorney...

 

[chiefmojo]

coming after my biz

My company is an S Corp.

 

[willingtocope]

I don't honestly know the answer to this. I do know, if a judgement has been filed, you should answer it or he may just get a default judgement.

Again, talk with an attorney.

 

[JETX]

Simple answer.... if this was a residential lease in your individual name only, the corporation has NO liability or obligation.

However, if this was a commercial lease, then there COULD be an arguable presumption that the business would be obligated.

 

[Merriweather]

Avoiding Bankruptcy

I noticed your reference to an old landlord. Did he have a judgement against you before the $40K debt and your decision to file?

The reason I ask is because if the 'old landlord' had judgement against you previously in another set of circumstances and he was unable to enforce the judgement against you he may now know where you are from the public record and issue for enforcement proceedings.

What you ought to do is to seek to negotiate your debt with your creditors regardless of big your debt and how obnoxious and non negotiable the other sides propositon may be. This is based on the common law propositions and principles of law rather than a specific state based statute.

Get a lawyer or do it yourself by writing to your major creditor (who holds the key in any bankruptcy) and make an offer to trade out of bankruptcy. There are ways of making them budge. I do it a lot of the time for others.

 

[chiefmojo]

Residential Lease

This was a Residential lease that I made privately. He went and got a judgment against me personally. Then I filed bankruptcy. Then I got a letter in the mail, notice of motion to grant judgement against my business. So the question is, once judgement has been made against me personally, can this motion be even be granted to then hold my business accountable? Meaning, post trial motions? Should I even reply to the court regarding this notice of motion if I my corporation is not liable because it is a separate entity.

As far as negotiating debt, at this time, I don't think it is in my best interest.