if i sign a confesion of judgment can i fill chapter 7 in state of virginia at any time or is there a waiting period for such situations?
State/Country relating to question: Virginia
Hi - my name is XXXXX XXXXX X'm a Bankruptcy attorney here to assist you.What would the confession of judgment be for?
purchase of a companies assets, that we purchased and they now want security in way of confession of judgement in the event of non payment, things are very unstable with economy and our business and in the event it gets worse we would have no option but claim BR and need to know if we do sign the confession would it be dischargable and if there would be a waiting period to claim
Thank you for your response.
1) Was the purchase already made? Or is the confession of judgment something that the seller is requiring before allowing you to make the purchase?
2) Debts belonging to a business cannot be discharged in a Bankruptcy. Only an individual's liability for debts can be discharged in a Bankruptcy. Is the confession of judgment for a judgment against you personally or against your business?
Purchase already made, there's been litigation and because both parties were in default, we've come to an agreement on price but they want us to sign a confession incase we don't pay. They have issued a warrant in debt on both company and personal and have continued that case 4 times while we are negotiating, we are an LLC and they want the confession on both company and personal
Since the purchase was already made, and the purchase does not depend on the confession of judgment, there would be no time period that you would have to wait to file a Bankruptcy. (If the purchase depended on the confession of judgment, then you would have to wait 90 days before filing. Bankruptcy Stat. 523(a)(2)(A).)
You would be able to have your personal liability for the judgment discharged in a Bankruptcy. However, as I already explained, it is not possible to discharge the business' liability for the judgment.
I think this is what you wanted to know. If not, please let me know.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).