Legal Question in Business Law in California

I was a business owner in CA and I owed the landlord money at the end of 2007. I handed over my business to a new owner and moved out of state to start over and find work. I am still not able to pay my 7,000 obligation. I have two children and my income is 10$ and hour. Can they sue me in a new state? If so, can I file bankruptcy on an LLC when it was 4 years ago since I owned it? The collection people are threatening to sue but I just don't have the money. No assets except my 1,000 car that I use work.


Asked on 1/20/11, 7:03 am

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

First, you need to consider whether you have personal liability for the debt to the former landlord. If the lease were in the name of an LLC and you didn't execute a personal guarantee, you have a pretty strong defense.

Next, even if you are personally liable, the landlord or the collection people that bought the debt from him may make a big commotion trying to get you to pay, but they will think carefully before going into Texas and filing suit on a California debt which they probably couldn't collect even if they got a judgment.

Finally, there is the issue of whether the new owner of the business is the one they should be going after, not you.

You're not 100% in the clear, but I wouldn't worry a whole bunch about it.

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Answered on 1/26/11, 12:08 pm


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