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Question
I filed chapter 7 personal bankruptcy and received a discharge several months ago. After receiving my discharge, a creditor filed a summons and complaint against my single member LLC, suing for money and equipment assets. I know technically they can sue the LLC, but it is now defunct, has minimal assets left that have greatly depreciated, and my personal liability for the debt has been discharged.
It seems that mostly what they are saying in their summons and complaint is something I should admit too, but I have my discharge, which I am using as my only affirmative defense.
Is there anything I need to worry about? I need to answer the complaint tomorrow, and will be admitting to a lot of it, but will be asking for dismissal because of the bankruptcy discharge, as I no longer have any liability for the debt. And with the LLC being defunct, there is just nothing for them to win. Am I correct in saying this?
Michael:
If it is as you say, you should be fine. Ideally you would have some documents from the state showing you have dissolved or closed the LLC. Additionally, if you filed any annual returns, tax returns, or other bank/income statements, you should have those ready to show there are no assets. I'm not saying you need them tomorrow, just down the line if they pursue it. You want to be able to prove there are no assets as best you can. This is probably a fishing trip by the creditor.
Regan
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Answers by Expert:
Regan Shinski
Expertise
I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit reporting.
Experience
Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports.
Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry.
I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA).
I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage.
In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.
Education/Credentials
BA - University of Minnesota
Past/Present Clients
(private)
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