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John
John, Attorney
Category: Business Law
Satisfied Customers: 4986
Experience:  Licensed and practicing attorney helping businesses achieve their legal and practical goals.
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I am a contractor. I was contracted to do an addition

Customer Question

I am a contractor. I was contracted to do an addition for a client. After three months and several design changes they are trying to get a full refund on all money paid plus damages claiming breach of contract. I am an LLC in Texas and am trying to get an idea of what would happen if a judge found in favor of them as far as time to pay back collection abilities etc.
Submitted: 1 year ago.
Category: Business Law
Expert:  John replied 1 year ago.
Hi, thanks for submitting your question today. My name is John. I have over 13 years of legal and consulting experience in this area. I’m happy to assist you with your question today.
Assuming they won, which isn't a forgone conclusion depending on your contract, they would get a judgment from the court. It would then be their responsibility to try to collect on that judgment. The way they do that is to lien your or the LLC assets. If the contract is just in the name of the LLC and the judgment is against the LLC only, then only the LLC assets may be liened - e.g., bank accounts, real and personal property (land, equipment). This all takes time. Most often plaintiff and defendant would come to some agreement how to pay the judgment rather than liening assets. Only where the defendant is not responsive would the lien process come into play.
I believe this answers your question. However, if you need clarification or have follow-up questions regarding this matter, I will be happy to continue our conversation – simply reply to this answer. If you are otherwise satisfied with my response, please leave a positive rating as it is the only way I am able to get credit for my answers. Thank you, ***** ***** wish you all the best with this matter.
Customer: replied 1 year ago.
Thank you for the prompt response! I feel I am in the right but morejuat trying to assess worst case scenario. My wife is concerned about our house which we have a mortgage on. Would they be able to take our house?
Expert:  John replied 1 year ago.
No, first your house being in both your names protects it from creditors of one you - in other words only if your wife and you were sued jointly for something, which wouldn't be the case here, could it become an asset to be liened. Second, having a mortgage on it plus the homestead exemption make it worth very little to a judgment creditor - after costs etc there would be nothing to collect on.
Hope this clarifies the matter. Let me know if I can be of further assistance. Thanks.
Expert:  John replied 1 year ago.
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