Legal Question in Business Law in New York

Our LLC sold assets to another LLC (now closed) for $120,000 (15k down, 30 year amortization, 5 year balloon). The members of the LLC that bought the assets also personally guaranteed the payments. We also have lien/mortgage on their home (this was signed by the father who owned the home of one of the LLC members). Two years in the buyers stopped paying and closed their business. They refuse to answer our emails and calls. The owner of the house is deceased. The house was sold last year for $1 to the daughter (one of the buyers). They still have some equipment from the business. What is the best course of action at this point to collect on the remaining balance (approximately $70,000). They are employed. They do have some personal assets. Should we have been notified about the sale of the house, etc?


Asked on 12/12/11, 8:22 am

2 Answers from Attorneys
Christopher Moye The Law Office of Christopher Moye

I think that you're dealing with a number of serious, serious issues here (not the least of which is the sale of real estate for $1 in what was quite possibly a fraudulent transfer of assets to avoid liability). This is absolutely not something that you can handle on your own. You honestly need to contact an attorney to work all of this out.

I know that you may be thinking that you have already lost $70,000 and you don't want to lose more money but that's just not the way to look at this matter. Your fact pattern (and remember, I don't have ANY information other than what you provided here) suggests that you may be able to attach the equipment from the business and sue the daughter who received the house. Again, I don't have enough information to offer an intelligent analysis of your matter but I'm 100% confident about the fact that you need to contact an attorney ASAP.

Best,

Christopher Moye, Esq.

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Answered on 12/12/11, 10:53 am
Roman Fichman Esq. Law Practice of Roman Fichman Esq.

I agree with my colleague. This is the time to "lawyer up", so to speak, and seek damages. Generally, even if you win, one of the hardest challenges, in these types of cases, is to find assets / property that would be subject to a judgment. In your case, you already have identified such property / assets / income sources, so you should be much more confident in your ability to collect once you prevail.

I would be happy to chat with you further. Feel free to contact my office at your earliest convenience.


Roman R. Fichman, Esq.

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Answered on 12/12/11, 1:48 pm


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