Have Legal Questions? Ask a Lawyer Now.
Hello I am a licensed attorney. I am here to help answer your questions. Please do not hesitate to ask for clarification
If the prior debt was in your name, it would be possible for them to collect on your personal assets, however, if you do not have a personal bank account, and everything is in a d/b/a that should protect your new business and loan proceeds,
however, you need to make sure a new tax id is created and registered with these accounts,
in fact I would create a corporation, and have the loan and all accounts placed in the corporate account, which is treated as a separate entity as yourself,
a d/b/a is not as strong as a corp for protection
A collection agency will run a search by your social security and name,
so if you do not use your social security number collection will be difficult,
Have tax ID on business I had in Ca & am still using now in Texas. I filed tax returns using it there & now in Texas. Would they be able to locate business name even though I didn't use it with them - had an S Corporation in Ca that was the business that failed. Plan or getting an LLC for new business. Can they find d/b/a accounts here as I used 1 for 20+ years in Ca & now here ?
It would be difficult for them to collect on it, unless the loan was in the d/b/a name,
the issue is whether the tax id used was the one with the judgment on it, if it is you will need a new one,
if it is not, even if they find it, which would be rare, they could not collect
Loan was in S corp name in Ca & it no longer exists due to closing in 2006.
than they cannot collect on the d/b/a/ if it is a different tax id and business,
they would search the name on the judgment and the tax id number of that company not your d/b/a/
So they can't just contact various banks on a hunt for an account - the d/b/a accounts had to have our SS # XXXXX be able for us to sign checks & so on.
even if your social security is as the registered owner, the account will on the tax id number
OK...my wife is really worried about levy on accounts even though we don't have a lot, we need it to pay bills. Loan Co knew we had no assets left & now I am 65 & can't understand why they're still pursuing us.
I would not worry too much, you can also create an LLC with its own tax id
and put your money into that account, it would be very difficult for them to collect,
A corporation is treated as a separate entity,
so they cannot be held liable for the past debt
That's what we plan on doing when loan goes through here - hopefully in next month. Waiting on seller attorney to get sales contract so can give to loan company.
That is fine,
you should not worry too much,
Good luck, and if you have any further questions please do not hesitate to ask.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).