Involuntary Bankruptcy Proceeding Against a Judgment Debtor
My question involves bankruptcy in the state of: Washington
A default judgement was gained against my LLC because, when I showed up in court to defend my company, I was told that I needed a lawyer and was not allowed to speak. My LLC was specifically named in the final judgement but not myself as an individual.
Recently, I received a SUMMONS TO DEBTOR IN INVOLUNTARY CASE. The IN RE (Name of Debtor) on the INVOLUNTARY PETITION attached to the summons is the name of my LLC (which was dissolved in April.) However, listed under ALL OTHER NAMES, is my name. To be exact, it is my name (comma), dba my former business name without the LLC. Let's call my company XYZ LLC. Previously, my company was called XYZ, and it became an LLC later. During this transition, I started my business with the plaintiff. The contract was signed under the LLC however.
Am I, as an individual, or even me dba my pre-LLC company now included in the judgement if it is granted?
My dissolved LLC has no assets. This person is a single creditor bringing this action against my LLC. Other than trying to bring me into the suit as an individual and thereby making me liable for my company's debts, what does this person have in mind? Revenge and further discovery are all I can think of.
Thanks.
Re: Have I Been Included As an Individual in an Involuntary Petition
It's high time you hired a lawyer.
You are obviously in way over your head.
If you don't get a professional to handle this for you, you run the risk that the enemy will come after you personally by "piercing the corporate veil" (google it, it applies to LLCs, too).
Re: Have I Been Included As an Individual in an Involuntary Petition
I'm familiar with "piercing" thing and that is what I'm concerned about. I'd love to get a lawyer but that is expensive and there is no money. Do you know of a way I can be appointed one by the state? Any strategies appreciated. I spent a year in law school so could at least make an effort.
Re: Have I Been Included As an Individual in an Involuntary Petition
WA does not appoint attorneys in civil cases (except in one or two extreme exceptions which aren't present here).
If you're criminally charged, you are entitled to an attorney (though if you can afford one, this generally means you won't qualify for a PD).
Re: Have I Been Included As an Individual in an Involuntary Petition
Quote:
Quoting
Sheryl Smith
I spent a year in law school so could at least make an effort.
Then you know just enough law to be dangerous.
Even I wouldn't handle something like that by myself and I can run rings around any One L.
Re: Have I Been Included As an Individual in an Involuntary Petition
1. You need an attny. At least meet with a few - consultations are free - but you may be hard pressed to find one familiar with handling involuntary proceedings. Try higher-end firms even if you have to pay a few bucks for the consultation.
2. You need to answer petitioning complaint to preserve your rights if this is an improper filing.
3. If you have 12 or more creditors the involuntary needed to be submitted by 3 of those creditors, not just 1. And. . . those creditors had to hold claims that are non-contingent and NOT in "bonafide dispute". If you have less than 12 creditor then 1 creditor can seek the involuntary but I beleive that one creditor's claim cannot be in bonafide dispute.
4. Since you have some legal background (AJ is right - a little knowledge is dangerous), you want to carefully read 11 U.S.C. 303.
5. For all we know, you are a candidate for a bk and, while the initial filing was involuntary, maybe you personally need one - but not the Chapter 7. Conversion to a 13 or 11 may be the path you choose.
Best of luck.
Des.