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Can you delay a judgment against a personal guarantee by threatening to file bankruptcy in the name of an LLC?
Wiki User
∙ 12y ago
No.. Not unless the LLC is the debtor. Whatever issues the llc has, are at that moment; of no concern to the guaranteed Creditors. They have no personal guarantee from the LLC. There is no Direct responsibility for the Guarantee from the llc.
However, the Creditor can seek the assets of the Personal guarantor, including the assets held in the LLC to the extent that they are owned or controlled by the personal guarantor [borrower] 50% ownership would = 50% crossover from the personal guarantor's % of ownership.
It might delay enforcement until it can be made clear to the court and relief from stay is awarded. But It will not normally delay the judgment in the prior matter.
Get a consultation with a Specialist in this area of law. The comments here are based upon my lay interpretations and is not to be construed as legal advice.
Trenton Sims
California Broker
310.422.0435, 310.807.9230 FX Tsims@GreenPlanetFunding.com
Wiki User
∙ 12y ago
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Does a personal chapter 7 bankruptcy cover a corporation personal guarantee?
Yes, if you include the guarantee you made to the creditor in the bk.
Can assets be protected from a personal injury judgment by filing bankruptcy?
Yes. Consult a knowledgeable bankruptcy attorney.
Can you file a chapter 7 bankruptcy if a lender files a personal judgment for deficiency?
Yes
Does a personal bankruptcy eliminate a personal guaranty on business debt?
Yes. I filed for that reason alone. I signed a lease for a business. I was told I had to sign a personal guarantee. I had to file a personal BK because of it. When I left the lease they tried to sue the business....but the business had nothing, so they came after me because I signed a personal guarantee. I filed a Bankruptcy and it was discharged.
Will filing bankruptcy eliminate criminal court fees?
If you are sued and a creditor gets a judgment against you, you may be able to discharge your personal liability on that judgment in a Chapter 7 bankruptcy. This will depend on whether the underlying debt is dischargeable (meaning you can wipe it out in bankruptcy) or nondischargeable.
Can you declare bankruptcy on a judgment for a car accident and if so would you be able to get a license again if it was revoked as a result of the judgment?
No, judgments awarded due to personal injury or property damage are not dischargeable under bankruptcy law.
Will a judgment be dischared if you go bankrupt?
This really depends on whether the judgment is a dischargeable debt in bankruptcy. There are some debts that you cannot eliminate in bankruptcy and they will continue to exist after the bankruptcy. Generally judgments from credit cards, medical bills or personal loans can be discharged but they can become non dischargeable if the creditor claims fraud or misrepresentation within the bankruptcy.
If you filed bankruptcy and are now facing foreclosure can the bank get a personal deficiency against you?
Yes, if the state and loan documents allow for a deficiency judgment, the bank can sue for one after the home has been sold at the sheriff sale and there is a deficiency. If the homeowners are sued after the public auction and the bank gets a deficiency judgment, then bankruptcy can be used to discharge the judgment. However, bankruptcy can not be used in advance before a deficiency judgment or other debt even exists to preclude its possibility.
If you file Bankruptcy on your business can they take your personal assets?
Only if then can show that you committed fraud, by piercing the corporate veil (i.e. using the business as your personal property), or if you gave a personal guarantee for business loans/debts.
Are personal injury judgments admissable to bankruptcy?
No. If you owe money to another base on a personal injury judgment against you then it is really not fair to that person for you to have the debt discharged in your bankruptcy proceeding. Civil settlements/judgments are in the category of nondishcargeable debts and will remain with you until you pay them!
What options do you have when an appeal court issues a default judgment against you in Michigan?
The only viable option is for the judgment debtor to protect as much personal and real property he or she owns. Exemptions for lawsuit judgments in Michigan are the same as those that are allowed in bankruptcy. It might also be possible for the judgment debtor to use non-bankruptcy federal exemptions such as SS benefits, government/military pension, etc.
If you file business bankruptcy do you also file personal bankruptcy?
I suppose you could, but even if you did manage to get the financing together to open another business, any profits from it would be subject to seizure by the court and the bankruptcy trustee to pay off the bankruptcy judgement. There is no bankruptcy "judgment." If the bankruptcy is over and you have your discharge, you can open a business, and any money you make is yours. Providing the first bankuptcy is discharged.
