Legal Question in Credit and Debt Law in California

i have a judgment against LLC. owner claims LLC has been cancelled since 2010 I confirmed with the sec of state and it does show LLC as canceled. Yet found entity with same name, address and owner is active with the franchise tax board but under a different number. FTB stated this entity is listed as LLC but is a corp. Active entity is not listed with the sec of state as a corp. I believe owner is neglecting to file LLC as Corp to avoid exposure . This owner is very wise in questionable practices.

The owner has wealth and the means to pay judgment but instead has to hide behind the ludicrous LLC loopholes. Several attorneys stated i have a good case but the judgment ($19,000) would dry out since owner can drag this on

Is this really the American judicial system?

Asked on 10/02/13, 7:40 am

2 Answers from Attorneys

Charles Perry Law Offices of Charles R. Perry

Without seeing the paperwork, I cannot comment on your situation.

It is true that attorney's fees incurred in collecting the judgment may not be recovered in most cases. I cannot tell you whether how much you would spend to collect the judgment. It may be that a sternly worded letter to the judgment debtor will suffice to start payment. It may be that you can do some investigation to turn up assets that will result in collections.

Best of luck to you.

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Answered on 10/02/13, 7:47 am

Joel Selik

If your judgment is against a defunct LLC, you cannot collect against the LLC. But you may be able to go after assets that were transferred, or otherwise show the LLC did not close properly. This may actually allow you to go after the owner, with the correct facts. You may also be able to amend the judgment to name the new LLC as a mere continuation.

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Answered on 10/02/13, 8:45 am

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