Legal Question in Landlord & Tenant Law in Illinois

I won a judgment in small claims against an old landlord. Judgment was against his corporation not him personally; he is now filing individual bankruptcy and listed me as a creditor, but is not including his corporation in the bankruptcy. Can I still collect?


Asked on 5/26/11, 7:30 am

1 Answer from Attorneys

Doubtful - it would take some research. It's possible that the corporation's principal asset is the building you rented in, and had a mortgage that is now being foreclosed, so there may be a foreclosure pending separate from the personal bankruptcy, and unless you recorded your judgment the lender may not have been responsible for notifying you of the foreclosure.... and some attorneys in situations like these will advise to let the bank foreclose since the corporation will be worth nothing without the building, and then protect you if you are something like the mortgage guarantor, by putting you through personal bankruptcy and letting the corporation float on its own, or sink. So the only way to test this out is to check whether there is a foreclosure, record your judgment against the corporation, notify the lender, and start supplemental proceedings to collect against the judgment debtor (the corporation) typically through a citation to discover assets or if you have corporate bank account info (like on the back of a rent check....) try a direct garnishment. Supplemental proceedings will cost something (court costs) and may not be worth your while. But may be.... As we attorneys often know, getting the judgment's the easy thing -- collection is where it can get tough.

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Answered on 5/26/11, 8:46 am


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