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legalg
legalg, Attorney
Category: Business Law
Satisfied Customers: 7406
Experience:  General Practitioner. Research Attorney
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I gave a loan to a company in Nevada. The loan is due since

Customer Question

I gave a loan to a company in Nevada. The loan is due since 1 November 2016. The company refuses to pay back because it has legal issues with the subsidiaries in China (the US company is only a holding company listed on the stock market OTCBB) and has not sufficient funds in the US. But there is at least some cash in the US which would be sufficient to pay back my part of the loan. What do I have to do if the company does not pay back the loan? Can I freeze the assets in the US? Would that cause the liquidation of the company?
Submitted: 1 month ago.
Category: Business Law
Expert:  Phillips Esq. replied 1 month ago.

Hello: This is Phillipsesq. Welcome to JustAnswer! I am reviewing your post, and I will post my response very shortly. Thank you for your patience.

Expert:  Phillips Esq. replied 1 month ago.

I am sorry to read about your difficulties.

You have to file lawsuit against the company first in Nevada and prevail. Then you would file Motion to freeze the company's assets. Whether your action would cause the liquidation of the company would depend on the ruling of the Court.

You would need the services of a local Attorney to file the lawsuit for you. You can use the following sites to find local Attorneys for business/commercial litigation:

Lawyers.com

Justia.com

Findlaw.com

Goodluck with your case,

Customer: replied 1 month ago.
Thanks for your answer! There are 10 loan creditors but not enough cash to pay back all of the loan. Will all of the creditors be paid out (in equal parts) once I file the lawsuit or only the ones who file a lawsuit?
Expert:  Phillips Esq. replied 1 month ago.

It depends on the loans priority and filings with the Court.

Kindly take a minute and use the popup screen to give a 5-star rating to my response so that I can receive proper credit for addressing your concerns. There is no additional cost to you for giving a 5-star rating.

Thank you for your cooperation.

Customer: replied 1 month ago.
The loan is the only one outstanding. Therefore there should be no other obligations except few salaries (two part-time employees). Do I understand correctly that only those who file a lawsuit will be paid out?
Expert:  Phillips Esq. replied 1 month ago.

No, that's not what I said. It depends on the circumstances at the time of litigation and if other lenders come forward.

Customer: replied 1 month ago.
Can you please help me to understand what you are saying. What are the circumstances? Please assume that not all but some of the 10 lenders come forward.
Expert:  Phillips Esq. replied 1 month ago.

I will opt out to give other Attorneys the opportunity to comment on your case.

Expert:  legalg replied 1 month ago.

Thank you for your question; new professional here.

Basically there are 3 types of loans:

1. secured (ie there is underlying collateral-such as a car loan or a mortgage, or one secured by a lien)

2. unsecured (credit card debt)

3. priority debt (this comes into play in bankrupcy, and includes loans such as: child and spousal support, income tax, payroll and sales tax, etc)

So secured loans have priority. A judgment creditor is a creditor that secures a court judgment, and then executes on that by obtaining a lien, for example, This will change an unsecured creditor to a secured creditor; as such, this judgment creditor would have priority over nonsecured creditors.

Priority loans come into play in bankruptcy- they are the loans that are typically paid first, and that are generally not dischargeable-so that the filing of the bankruptcy does not extinguish them.

Please review this for additional information.

So the order of priority is generally:

1. specific priority loans

2. secured creditor

3. payroll

4. unsecured creditors

Normally a category is fully paid off before one moves to the next category unless there is a reorganization, in which case the bankruptcy trustee determines the amount to be paid to each

Further questions? Please post here to continue the chat.

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Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.

Expert:  legalg replied 30 days ago.

Hello again; just checking in to see how things worked out;
if you have further questions please don't hesitate to reach out to me here on Just Answer.
Thanks!