Suit

[Gizmo2002]

What is the name of your state? California

I am being suit from a Law firm that representing a department store. I own a business and a car that worth about $5000. If I don't show up for court and a judgement is put on me. What kind of consequence I face? What can they do to my busineess? I don't have much money in my bank account. Thanks for the advice.

 

[Ladynred]

What type of business ? Is it incorporated, S-Corp, LLC or something else ?

IF they get a judgment, they can sieze your bank account, sieze any non-exempt assets, and garnish your wages - or your recievables if you're self-employed (not incorporated).

If you don't want an automatic judgment, you need to be sure you go to court !

How old is the debt, when did you last pay the original creditor ?

 

[Gizmo2002]

It's a beauty salon business. Is sole ownership not Corp.

What do you mean by exempt? Is it exempt as in the bankruptcy law?


What if I transfer the ownership of the business? The build is lease by my relative and the ownership of businees is in my name. The debt was last year 2002.

Thanks for the advice!

 

[HomeGuru]

Then writer, your biz is not shielded from liability being that it is a sole p and not a corp. Any transfer of the biz now could be considered a fraudulent transfer by the creditor.

 

[Gizmo2002]

By the creditor? What can they do to my business? It's in red right now since it just open and the business debt has not been pay yet. How can I protect myself right now? File Bankruptcy?