Business Debt/LLC lawsuit

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Expert: - 7/13/2008


Question
My company is an LLC with two managers (husband and wife), we have been served with court docuement on a lawsuit from DEX Media, We are not able to pay what is owed (about 65,000) If we lose this lawsuit (expected), can DEX attach to our personal assets?

Answer
Dear Linda:
Thank you for your question. I regret that you find yourself in a financial difficulty. I am familiar with Dex Media, as a vendor they are very aggressive in pursuing collections matters in this manner. I strongly suggest you seek legal advice in relation to submitting your case in court. You should consider appearing, even if you are assuming that the court will find in favor of the plaintiff. If you don't they will automatically and you won't have the ability to plead hardship or anything to address repayment of the judgment. You want the court to know exactly why you could not pay in the first place and why paying on a judgment may put both your company and you in financial ruin.Judgments may be able to be structured in installments for repayment. As for liabilities and attaching to personal assets, having a contract containing a personal guarantee is one way that a creditor can exercise the ability to do so, but if you dissolve a company because of this, you may be eliminating protective measures afforded you by your States statues and other laws pertaining to debt collection. If you need help in finding competent legal counsel, visit www.findlaw.com or visit www.lawhelp.org.
I wish you the best in this matter, and if you found this answer helpful, please take a moment to provide a positive rating so others may benefit as well.

Respectfully,
Christine Janklow

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Christine Janklow

Expertise

As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.

Experience

My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.

Organizations
Provisors;Turnaround Management Association; Los Angeles area

Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."

Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising

Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.

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