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  1. #1
    Join Date
    Jul 2010
    Posts
    2

    Default Default Judgment Against a Corporation

    My question involves business law in the state of: Florida

    My company stopped doing business about a year and a half ago, but is still listed as an active company with the state. There are really no assets and very little money, if any. A client won a default judgement against the company within the few several months against the corporation. I was not personally named anywhere in the paperwork or judgement, only the corporation. A defense response was requested from the state, but since the company lost and did not have any defenses, nothing was sent. The summons said that a default judgement would be rendered if noe response was given. I still have not received any additional paperwork from the state indicating that the judgement was default, probably because the full 20 days are not up.
    The company has no money to pay out for the judgement and I barely have enough to support myself now. What are the chances or probability that the person can try to come after me personally or "break the corporate veil"? How long does it normally take before the trying to collect comes about and what all is involved with it? Does the company or I have any chance of not paying?
    Thank you.

  2. #2
    Join Date
    Mar 2009
    Location
    Key West, FL
    Posts
    2,350

    Default Re: Corporate Judgement

    If the plaintiff did not try to break the corporate veil in the trial, they can't do so after the fact. That is a null issue.

    Your corporation still exists technically so, as you know. it can still be sued. In fact, a dissolved corporation can be sued for up to two years after such. That only makes sense if it had substantial assets that were distributed to stock holders or officers after it was dissolved, in an effort to defraud creditors.

    Are you the registered agent? Any paperwork has to be sent to the registered agent. There is absolutely no liability being the registered agent.

    They can't collect from you, they have no judgment against you and it is now too late to try to get one.

  3. #3
    Join Date
    Mar 2008
    Posts
    1,995

    Default Re: Corporate Judgement

    Quote Quoting zerocash
    View Post
    My question involves business law in the state of: Florida

    My company stopped doing business about a year and a half ago, but is still listed as an active company with the state. There are really no assets and very little money, if any. A client won a default judgement against the company within the few several months against the corporation. I was not personally named anywhere in the paperwork or judgement, only the corporation. A defense response was requested from the state, but since the company lost and did not have any defenses, nothing was sent. The summons said that a default judgement would be rendered if noe response was given. I still have not received any additional paperwork from the state indicating that the judgement was default, probably because the full 20 days are not up.
    The company has no money to pay out for the judgement and I barely have enough to support myself now. What are the chances or probability that the person can try to come after me personally or "break the corporate veil"? How long does it normally take before the trying to collect comes about and what all is involved with it? Does the company or I have any chance of not paying?
    Thank you.
    If I were you, just lay low and see what happens.

    If you didn't file any dissolution documents, you should be OK as most states in dissolution declarations make the principal responsible. They would need to show that you did something illegal or unethical to sue you personally, so unless they can find grounds to do this, I wouldn't worry.

    The next steps in collecting on a judgment is they send you an information subpeona asking for all the assets and liabilities of the company. If the company has no assets, bank accounts etc., then there is not much they can recover there either. On the other hand, if you have company cash left in the bank, they can garnish that.

    In FL, if you're a homeowner, I recall your home is exempt from creditors.

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