Civil/Commercial Litigation (Lawsuits)/judgement against my company
I'll stick to the facts though the story is long! A judgement was awarded against my company, which is an LLC. I live in Florida, Sarasota county. Neither my business or me can afford to pay thihs judgement. My questions are as follows:
1. Can my business bank account be frozen with no further notice or does notice need to be givin to me
2. Can my personal bank account be frozen at all? I am not a defendent but I represent the company and my name is appearing on the court records as a defendent! The case is against the company not me personally.
3. Finally, as I am personally going bankrupt as a result of many events, not the least of which the one that precipipated the lawsuit (which was a small claim by the way), at that time I also plan to re-organize4 my business. AThat is, shut down the checking out, abandon the corporation. Establish a new corporate EIN number and re-open under a new name. This is all legal right? After that will the debts from the old company be uncollectible.?
Thank you. I look forward to your answers.
Before I respond further to your question, I must make clear that I do not represent you, and cannot give you individual particularized legal advice. No attorney client relationship is created by this email. For legal advice, you should hire your own attorney, and follow their advice. My role with AllExperts is limited to providing general information and suggestions for educational or general knowledge purposes. Before you take any action, consult with your own attorney.
I don't practice law in your state, and suggest you confer with a practitioner who does.
Typically, a bank account can be levied or frozen as part of judgment enforcement, and you would likely get notified by the bank that they had to respond to a court order. I would not expect that you would receive notice prior to action; otherwise I can't imagine how anybody enforces a judgment in your state.
I am confused by your second point. If your name is on the court records as a defendant, then you are a defendant. If you think that is in error, talk to an attorney licensed in your state about appealing the judgment or vacating it.
Notwithstanding the prior issue about your personal liability, if you dissolve the debtor company its debts die with it unless the judgment creditor pursues you with a piercing the corporate veil or fraudulent transfer action. To protect yourself properly, hire a lawyer licensed in your state and/or speak to your bankruptcy attorney.
I hope this helps, good luck to you.
SMITH & RAVER LLP
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