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Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 112649
Experience:  Attorney experienced in commercial litigation.
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I have a lawsuit against a co and the co's owner, we

Customer Question

I have a lawsuit against a co and the co's owner, we filed the case at court at 14 Oct, but the co was closed at the last day, before they must answer the lawsuit...now they have new co,under the owner's son name, the old owner not in the new co. ..the
case is we loan money to the old co and owner give me his personal gurantee....the money transition is very simple, have bank approved paper for received also have the old co's payment schedule, the only different is the co closed and new co is under the son's
name, one of the son is signed all payment schedule...we have court judge hearing date at Dec, two side lawyer will attend. due to case very simple, is possible for judge make desion give us judgement at court, also seal the son's co together?....due to the
son also part of the owner in old co and one of the son involve in the borrow money thing with me.... The old owner give personal gurantee, but he sale his house to wife in May this year, can we ask court change back the name? takes how long? how about judgement
need how long? the person we suit, their layer if not cooprate with us, only how long we give them chance to wait....
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
If they can prove that the son's company is a successor of the old company then the son's company could be liable for the debt. The father is personally liable if he gave you his personal guarantee.
The sale of his house can be canceled based on the fraudulent transfer act, since he sold it to avoid paying a judgment.
The court can issue a judgment when your case goes to court in December. Once the court enters the judgment, the defendant has 30 days to appeal or pay. If he does neither, then you can seek to have the sheriff go seize his property and bank accounts to pay you back.
Your attorney will argue to 1) allow you to pierce the corporate veils and consider the son's company a successor in interest and 2) to recover the home for payment based on the fraudulent transfer act.
Customer: replied 1 year ago.
sounds good from your information if things really happens like what you said....my questions is 16-Dec is the court hearing, both lawyer will attend at the court, what happen if defendant's lawyer argue and try delay the judgment? if it passed, if defendant's personal and co's account no enough money, if possible seize the old co's account imd?, due to from now start is over one month time.., any transfer money between now to court date from old co to new co or through any 3rd party,they also can have other way to transfer money to new co, due to new co is no capital, all money is father's money.... can call fraudulent transfer?..due to this law suit amount is not a small amount....
About the house defendant sale his house to his wife in May,2015...he has some other property..looks like in his son's name or not so clear...
Defendant co is close at 6-Nov, co doing big business in the past, over 30 years co..,but loss money in 2015. Son's co set up at the same time, same office, same worker, father left for a week when co close, now return office working, but no more as co's owner, his new title is consultant for new co, sitting at the same rm with his older son.
How to approve the new co is the same co as the old co? how to seal the new co's account? due to this is the key to hold their money in the future to pay.......co's business is wholesale for garment, shipment from oversea to LA warehouse, store pay all the money to their factor( finance co), how court can issue order to seize the son's new co's account?...they have lawyer's advise, they will try delay the time, by the time court allow us to seize new account ......may it is too late....the quick information is the oldest son and two younger son all is the old co's share holder, but small percentage, the older son is the co's money man, I have all the paper to approve he is the person working under his father takeing all my money and also doing all the money transaction for me in the past....
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your reply.
You bear the burden of proving that the son's company took over the old company. If you do so, that would be grounds for going after the son's company as successor in interest.
Also, the father transferring the house to only the mother's name, you need to show he knew that he owed you the debt and transferred the home into the mother's name to avoid having to pay on the debt and the fraudulent transfer act would allow you to go after the house and void the transfer.
Any transfer of funds from any accounts can be called a fraudulent transfer. It is up to your attorney in the upcoming hearing to argue that and present some evidence to the court of that.
Of course the opposing party is going to try to argue otherwise and try to delay it and it is up to your attorney to at the very least ask the court to place an injunction or levy on all of the accounts and the property until the court decides to prevent them from trying to hide the assets further and there is evidence they are seeking to get rid of assets to avoid paying the judgment.
Your attorney needs to show that the new company has taken over old company's business by showing it has the same customers, it has the same officers, employees etc. He should be able to do this fairly easily.
He can get an injunction to stop the accounts or property from being emptied or transferred.