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my contractors attorney has faxed a letter stating that because

Customer Question
they have not been succesful...
my contractors attorney has faxed a letter stating that because they have not been succesful in serving me the complaint they have fulfilled their obligations under civil code 415.50 and will seek permission from the court to serve me by publication which will resuklt in a default judgement against me and they can put a lien on my property
Is this true can they really do this?
Thank you Melinda
Submitted: 6 years ago.Category: Legal
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Answered in 20 minutes by:
3/1/2011
Lawyer: lwpat, Attorney replied 6 years ago
lwpat
lwpat, Attorney
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Satisfied Customers: 25,387
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The answer is yes they can. They would have to show to the court that you have been avoiding service and that they have made reasonable efforts to serve you. Then the judge can allow service by publication and the case will proceed even if you do not file an answer.
lwpat
lwpat, Attorney
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Customer reply replied 6 years ago

The condo building that my contrator built in 2007 was under my L.L.C. my contractor was over 6 months late on completeing the project and went over the budget by $175,000 which I foolishly signed a prommisory note saying I owed him. Because the market crashed during that period I could not sell the units I rent them.

 

I have a bank construction loan for 1.9. million the property today is only worth 1.7. million so there is no equity in the property. Can I file my L.L.C.for bankrupcy? what will happen to the contractors prommisory note.?

Also will the bankrupcy have any inpact on the bank loan?

Thank you Melinda

Lawyer: lwpat, Attorney replied 6 years ago
Did you sign the note personally or as the LLC? It makes a huge difference if it was a personal guarantee. Same question for the bank but I would assume that it is personally guaranteed.
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Customer reply replied 6 years ago
The promissory note was signed under the L.L.C of course the bank made me personnally guarantee
Lawyer: lwpat, Attorney replied 6 years ago
The LLC can file for bankruptcy and the contractor's loan can be discharged. However, you have a problem since you have personally guaranteed the loan to the bank. The bank will take back the ownership of the condo building and look to you for the balance on the loan since the BK will dissolve the LLC. You need to sit down with the bank and go over your options. I am not really a BK attorney and did not realize from your first post we would go in that direction. I will ask someone else to look at your post and see if they have anything to add.
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