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CalAttorney2, Attorney
Category: Employment Law
Satisfied Customers: 10244
Experience:  Civil litigation attorney for individuals and businesses.
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We were sued by 3 former employees when we could not make

Customer Question

we were sued by 3 former employees when we could not make our payroll in 2012 by 2 months. We asked them to give us time but they refused and took us to court, the other 15-16 employees understood that the state was attempting to purge medicaid clts off the role at the expense of the professional therapists and started conducting pre-pay audits, which is why we could'nt pay they he;d our money before we could get it. Of course we lost the case, no attorney, all our funds were in limbo. Can we appeal or is it too late
JA: Because laws vary from place to place, can you tell me what state this is in?
Customer: NC,
JA: Is the employment agreement "at will," union, full time or part time?
Customer: NC is a right to work state and these employees were full time
JA: Anything else you want the lawyer to know before I connect you?
Customer: We are required to pay them 72,000 and they want to take our home and our daughter's property. We put the primary home in bankruptsy amd put the condo in our daughtet's name, this was by design however, because she was graduating from college in Dec of this year and I had promised her the condo, it is paid for. Now all of this is threatened.
Submitted: 1 year ago.
Category: Employment Law
Expert:  Attorney2020 replied 1 year ago.

When was the judgment entered against you? What name or name of entity was the judgment entered into against?

Customer: replied 1 year ago.
in march 2014 and it was against chester west , phyllis west and amw foundation,inc (no longer in use) so when they couldnt get anything from the foundation they came after us
Customer: replied 1 year ago.
can we appeal? we only have a bankruptcy attorney, who is advising as best he can so that we can hold onto the primary dwelling. their attorney will not give this case up, we've continually said we have no money and everyone who is in health care during that period of time knew what happened with medicaid and all the bogus audits, with holding your payroll.they got an attorney who worked on contingency which is quite unfair because we have to pay for every little bit of advice we have gotten to date.
Customer: replied 1 year ago.
Are you still there? or should we close up and wait for response on email
Customer: replied 1 year ago.
can we counter sue? do we have any protection at this point? can we save the condo or so we have to sell?, they have messed up our credit with all these judgements
Expert:  CalAttorney2 replied 1 year ago.

Dear Customer,

Thank you for using our forum. My name is***** am another expert on the forum, your prior expert "opted out" this sometimes happens, but I do apologize for the delay.

Unfortunately, your opportunity to appeal was immediately following the entry of the judgment (NC - 30 days following judgment to file appeal).

The transfer of the condo to your daughter is going to be treated under the "Uniform Fraudulent Transfer Act" (Do not misunderstand the term in the title - the act simply allows creditors to pursue assets that are transferred with no consideration or for less than market value - it does not necessarily imply that you did so fraudulently).

The creditor has every right to pursue you in this manner, and while you can shelter certain assets (such as a portion of your homestead ($60,000.00 as a married couple)), the majority of your assets are going to be subject to collection.

Please note - your daughter cannot claim this exemption for the condo she received from you - that is going to be subject to collection in its entirety.

For a very good overview of the NC Bankruptcy exemptions see:

Your bankruptcy can eliminate your personal liability for these debts (generally - your local bankruptcy attorney should be advising you on the specifics of this claim), but your business entity will remain liable.

There are very few debts that are non-dischargeable in bankruptcy, See:

So - while your bankruptcy will likely result in the dissolution of most of your assets given the aggressive nature of your creditors, and I would suspect that they will pursue the property that you transferred to your daughter (there really is no good legal argument to prevent this), you can get a bankruptcy discharge to have a final end date on this collection activity and be done with it.

As far as a counter-suit, I am really not sure what to tell you, there doesn't appear to be any basis for one.

I am very sorry that you had an unfortunate series of events affecting your business and your industry, but failing to pay your employees is going to result in very aggressive enforcement, followed by collections activity, and the results that you are suffering now may be unfair on a personal level, but your employees have every right to do so (and all of the employees that didn't take legal action against you were foregoing significant legal rights that they did have against you).