If a business has a large lawsuit judgment against them can they declare bankruptcy and wipe it out?
Litigation concering business' is handled differently than personal lawsuits or BK. Lawsuit/judments against a business can sometimes be dismissed in a BK discharge. If the judgment pertains to personal injury, civil rights violation, etc. it is not ordinarily dischargeable in BK proceedings.
And it needs to be recognized that a company (or a person) does not go Bankrupt on a specific thing. If the company has assets they must be used to pay creditors before any debts are discharged....and to the degree that they can't raise cash (through sales of assets, pats of the biz, even getting new loans) to pay off the debt, the Stockholders are the first to lose.
While the court may ultimately determine who gets what...in a business situation there is frequently a group of creditors that try and work things out for the court approval. The court must follow certain rules, with certain rights of claim taking priority over others (like payroll over suppliers), and may allow one class a higher payback than another (again like payroll, normally paid 100% up to very high levels and where suppliers may get much less)....but really everyone of a class is treated equally. So, generally you would get paid something and they really can't do it to avoid paying you....without having many others they don't pay equally, and stockholders/owners who lose a whole lot, also.
Basically, more commonly than not, for a Company to go bankrupt and escape paying debt, the Stock in the company becomes owned (the company becomes owned or controlled), by the people they didn't pay. (They just get paid in ownership of stock instead of money).
Business bankruptcy, of course depending on the size of the business, can cost astounding amounts of money in itself.
Can you declare bankruptcy on a judgment for a car accident and if so would you be able to get a license again if it was revoked as a result of the judgment?
The disadvantages of declaring bankruptcy in business include the need to pay the fees for lawyers and the court filings. This can be difficult if money is already tight. Also, the bankruptcy will stay on the owner's credit history for ten years which will make it difficult to get loans in the future.
Recently laid off got in a car accident no insurance cost of repairs equals 10500 I would like to repo the vehicle in it's damaged state then declare bankruptcy is this possible?
It is highly unlikely that the lender will accept a vehicle as damaged as you say. It will likely be listed as a lien loss and totaled. Do not wait to file bankruptcy. File it now and list the auto lender. This is the only protection you will have. Once they obtain a judgment against you, your options are severely limited.
Bankruptcy is of an individual or a corporation, or entity that includes all the assets and liabilities. Mortgage is part of all the liabilities against the filer. What can be removed and what can stay depends upon the kind of bankruptcy it is- ch 7, ch 11, or ch 13. Best bet contact a good bankruptcy Attorney.
A business owner has full authority and liability for their business. This means they can make the final decision on all matters pertaining to their business. They also receive all profits (after paying things like taxes) and are responsible for paying all debts. This contrasts with a corporation, which is considered a separate entity from those who run it. A corporation can declare bankruptcy while its CEO remains wealthy; this does not happen with business…