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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Consumer Protection Law
Satisfied Customers: 17463
Experience:  B.A.; M.B.A.; J.D.
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I have a corp. I entered into electricity contract. I was lied

Customer Question

I have a corp. I entered into electricity contract. I was lied to by broker. My bill went up 25%. I decided to sign up with different company as I could not afford. The electrcity company is suing me for 10000. I have a sba loan with security in everything for next 20 years. I also have a seller second with security rights in everything. If the electricity company gets a judgement, can the lien seize my corp bank account or force receivership? The sba has security interest in cash, accounts receivable, equipment, and real estate.
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Phillips Esq. replied 1 year ago.
Hello: This isCustomer I am a licensed Attorney and I will be assisting you today.
I have a corp. I entered into electricity contract. I was lied to by broker. My bill went up 25%. I decided to sign up with different company as I could not afford. The electrcity company is suing me for 10000. I have a sba loan with security in everything for next 20 years. I also have a seller second with security rights in everything. If the electricity company gets a judgement, can the lien seize my corp bank account or force receivership? The sba has security interest in cash, accounts receivable, equipment, and real estate.
Response:No, the company cannot seize your corporate bank account or force receivership because SBA’s security has priority. This SBA’s security interest issue would be brought up if the company does file lawsuit and prevail and then wants to enforce the Judgment with your already pledged assets to the SBA. The lawsuit would be for nothing because the Court cannot order levy on your bank account or force receivership when SBA has security interests in all of your operations.