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Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 45699
Experience:  32 years of experience practicing law and a businessman.
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4 creditor sued me for money on my business dont have any

Customer Question

4 creditor sued me for money on my business don't have any thing to pay business is about to close what should I do?
Submitted: 1 year ago.
Category: Business Law
Expert:  Richard replied 1 year ago.
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.


Good morning. Can you tell me the entity structure of your business...sole proprietorship, LLC, corporation, etc.? Thank you.


Customer: replied 1 year ago.

LLC

Expert:  Richard replied 1 year ago.
Thank you for following up. You need not do anything if these suits are against the LLC; you can simply let them get a judgment against the LLC. Unless you personally guaranteed the debt, the creditors sole recourse is against the LLC assets and you have no personal liability. The creditors will get a judgment against the LLC, but since the business is going under, there are no assets for them to go after. If you are named individually in the suits, you would file a motion with the court to dismiss you as a defendant because you have no personal liability for the debt of the LLC, which is a limited liability entity. It may be the judge won't dismiss you until the hearing, but the court will only render a judgment against the LLC, not you personally.



Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer. If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service with 3, 4, or 5 faces/stars so I can receive credit for helping you today. I thank you in advance for taking the time to provide me a positive rating!
Customer: replied 1 year ago.

All of them have me sign the personal guarantee papers when i open accounts with them one of (the Land lord) also have my wife signed as personal guarantee.


I already filed bankruptcy in 2004 don't know what to do now.

Expert:  Richard replied 1 year ago.
Thanks for following up. Can you tell me what your personal financial situation is at the moment? What kind of assets do you have?
Customer: replied 1 year ago.

nothing personally both of us, Only the business fixtures and maybe 20,000 in store inventory lost every thing to keep business open and running this is all i have if this is gone we will be in trouble might destroy our lives.

Expert:  Richard replied 1 year ago.
Thanks. To protect what you have left, you are going to have to seek bankruptcy protection again. Since you last filed in 2004, you should be eligible to file again now. Otherwise, when the creditors get their judgments, they will be able to attach these assets. If you file for bankruptcy protection, you can protect some of your things, get these debts and judgments discharged, and get another fresh start for you and your wife.
Expert:  Richard replied 1 year ago.
This is the part of my job I don't like...when the law is not in favor of my customer. I wish I could tell you there was some magic bullet, but, I can only provide you information based on the law so that you can act on the best available information to you. ………..I wish I had better news, but can only hope you recognize and understand my predicament and don't shoot the messenger. I'm sorry!
Customer: replied 1 year ago.

I am very sorry just looking for some help and answers, last question what is the worst thing can happen to me in my situation. can't file bankruptcy till 2014


Thanks for all your Help.

Expert:  Richard replied 1 year ago.
It's my pleasure to help the best I can. The worst thing that can happen is that they get a judgment against you. You really have nothing for them to take and it's likely they will spend any money pursuing you for a collection of a judgment when it's going to cost more to try to collect than you have to give them. Then, when 2014 comes, file bankruptcy and get these judgments discharged.
Richard, Attorney
Category: Business Law
Satisfied Customers: 45699
Experience: 32 years of experience practicing law and a businessman.
Richard and 4 other Business Law Specialists are ready to help you
Expert:  Richard replied 1 year ago.
Thank you so much for the positive rating! I appreciate having had the opportunity to serve you! If I can be of assistance to you in the future, just look me up and I will be happy to help!

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