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Ellen
Ellen, Attorney
Category: Business Law
Satisfied Customers: 36714
Experience:  25 years of experience helping people like you.
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We defaulted on an equipment lease and the leasing company

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We defaulted on an equipment lease and the leasing company won a summary judgement. The lease was personally guaranteed by both my wife and me, and the judgement was issued against the llc and us individually. The llc was desolved and I started a new llc. My question is: can the leasing company access the new business bank account? This is a totally different business, we are in NY state and the judgement was issued in NY state. What is the best procedure for protecting my new business while I resolve the summary judgement? Much of the funds deposited belong to clients (this is a construction business) and due to insurance regulations I must be completely transparent in my accounting systems.

WebLaw :

*Due to rules of your state bar or mine, nothing herein is intended as legal advice, only intended as general information to better help yourself.*

WebLaw :



So sorry to hear of this dilemma. I am a New York licensed attorney. If my answer is not clear to you, please ask me for clarification by using the reply button.

Customer:

thanks, XXXXX XXXXX

WebLaw :

I am typing your answer.

WebLaw :

Unfortunately the judgment may be executed against the LLC.

WebLaw :

Here is why

WebLaw :

The LLC is an asset owned by you and/or your wife. A judgment against you and/or your wife personally, can be used to attach any assets that you own. This includes your interest in the LLC

WebLaw :


I realize that this answer may not be entirely to your liking, and I regret being the bearer of information that you really don’t want to hear. But it would be unfair to you and unprofessional of me were I to provide you with anything less than truthful and honest information. I hope you understand.

Customer:

As I understand it, due to the personal judgement any future businesses of ours will be affected by the judgement.

WebLaw :

unfortunately that is correct

Customer:

Thank you and I appreciate your honesty.

WebLaw :

It has been my pleasure to work with you

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