If you go into a corporate partnership with someone and invest money and the partnership breaks up and money invested is not paid back can you file a lien?

File a lien on what? If this is a partnership ( not just an investment) then you are joint owner of everything. You sound like you do not agree with the split of the property at the time the partnership ends. Also you are either a corporation or a partnership, not really both. Sounds like time for an attorney, actually sounds like time for one when you set this up.

A lien is an encumbrance against real property to prevent its transfer until the lien is satisfied. In a corporation personal assets are protected, so its not clear what you think you could file a lien against. Also, unless a person grants a lien to secure debt, then you would have to go to court to authorize a lien to be placed.

Why not tell us the real story so we can try to help.

Ok, thanks for both of your responses. Here is the exact story... There was a company that we invested in meaning gave hundreds of thousands of dollars over a 12 month period. Originally, there was supposed to be a lien on the place of business (building) before putting any money in. Well things happened and the lien was never done, the only thing we got was a promisary note signed by both parties for the initial amount of money put in until the final paperwork was completed, which it never was. The parties couldn't come to a mutual agreement on things. Months later after things soured a lien was file with the clerk, and we initiated court action (forclosure on the building) but then they stopped it. Can the lien be stopped?

Did the corporation own the building? Have they declared bankruptcy or closed up shop? Was the promissory note secured by the building? Who stopped court action on what grounds?

Thank you again for your response, the owner of the building is either an individual or the corporation, I'm not sure. The business I believe is still operating from that building. There had been talks of Bankruptcy in the past, so I'll bet that's where he is heading.

As for the promisary note it is listed with the company's name and the president of the company (Borrower). It generally lists if any listed defaults occur this note and any other obligations of the borrower to the lender shall become due ASAP without demand or notice. There is no mention of the building as collateral. We do not want the business. We just want our money and be gone and hopefully learned a valuable lesson.

If the building is not owned by the corporation then you can't file a lien against it. Since the promissory note does not list the building as collateral, you have to file suit against the corporation. If you win the suit, which you should, you would then have to attach assets of the corporation for payment.

Ok, if the borrower files suit against us claiming we gave him no money, how can that be if we have all receipts and deposit tickets and so on? Does he have a leg to stand on, what if he files bankruptcy? Thanks again, by the way is this a free advice website?

You have a signed prommisory note. Why would someone sign one unless they were handed a check? But having the receipts and other documents helps as well.

If, however, he files for bankruptcy, a judge will liquidate the assets of the company according to a schedule of debtors. Your claim would be considered along with other creditors.

Has anyone asked you for money?

No, no one has asked for money. So if I understood you correct if he files for bankruptcy we are screwed? Our claim would be included in his B.K. I just found out that he filed a lawsuit against us on the last day he had to respond to the foreclosure, I guess you have 30 days or so to respond to a lien placed on your property. The court date is set for next week. What do they do at the first court date? Is it to see if there is enough evidence to go further, I hope that this won't drag on for years, we really need our money.

Thanks

I don't really know. If he filed a countersuit it would depend on the grounds of that suit. It would also depend on the nature of the hearing. I assume you have an attorney. If you don't I suggest getting one. If this issue involves mid 6 figures as you indicated, then you need an attorney.

But yes, if they file bankruptcy you are fairly screwed so to speak.

It appears that you invested 100's of thousands of dollars on trust, not informed choices. The money should have never been given until all the paper work you wanted was inplace. Now this does still happen a man sent me a 1000 dollar check yesterday in good faith that I will sign paper work over to him, If I was dishonest he could well be out a 1000 dollars.
And we have only talked over the phone a few times, so people still give money to people all the time without doing it right.

It really sounds (sorry) that you needed a good attorney back before you invested the money. And it appears the people you gave the money to, or the partner you had, someone cheated someone and is trying to get away from it.

Thanks,

Yes we have an attorney. Do you know what they do at the first court date? What does that determine? Is there a time frame he has to respond to the foreclosure? Is that why he waited until the last day to file a lawsuit.

Please don't tell me we're screwed. How can that be when he signed a promissory note. So if he goes B.K. with the corporation he can just include us in his debt and be done. What about the lien we placed? Yes, giving money without final paperwork was stupid, but you know when you think you have a good thing started everything else gets put on the back shelf. With all the bank deposit tickets showing the deposits we should have some grounds. Do you know what will happen at the first court appearance.

Thanks

Hello boomster:

It doesn't matter that you have receipts. He's not going to say that you didn't give/loan him the money. By declaring bankruptcy, he's just saying that he can't pay you back.

However, you are saying you have a court date to respond to a lawsuit HE filed against YOU. That means HE THINKS you owe HIM money.

Suing you for money and filing for bankruptcy are not compatible.

What is going to happen at this first appearance?? Most cases settle LONG before a court appearance is necessary. However, I'm sure it says on the summons exactly what the appearance is for. If not, you have an attorney. That would be where this question should be addressed.

excon

Well the summons states that they do not owe any money to us. So as far as I know he is not asking for any money just that he does not owe us any. Can that be? Where should it go from now? His lawsuit against us is in retailiation to our lien filed against his building.

Hello again, boom:

Lawsuits ARE for money - nothing else. They're NOT for retaliation. He can't, on the one had, say you don't owe him money, and on the other hand file a lawsuit against you for money.

You may not understand what he filed. He probably just answered YOUR lawsuit.

In the law, specific terms are used. We can help a lot better if the terms used are accurate.

excon

Your right, he probably just responded to our actions so the foreclosure wouldn't go through. I don't know for sure what the summons exactly states. They said something about him saying he doesn't owe us any money. But there is a court date, what do they do at the court date?