[hwangong]

As I mentioned in another thread, my father has a debt with casino in NJ in amount of $6800.
They gave him a Civil Summon, he made a payment arrangement, but he failed to satisfy it. He only made the first payment of $300 and no more. Then, they tried to place levy on his account while he doesn't have any account open. By the bank's mistake, they ended up placing levy on my account which has nothing to do with my father.

I called and argued against the bank again and again, and finally, my bank admitted their mistake and they returned the money they put on hold for this levy. I was told by the bank's legal department that the levy is removed and money returned. Money is really returned but I don't know what legal actions are taken to removed that levy, or whether it's just bank's correction for their mistake.

Now should I still fine an objection to bank levy to NJ Superior Court to prevent any further incident? Or could I just take my money and forget about this?

I also wonder what that casino could do from now on because I'm pretty sure they will be pissed now and take further actions for this. My father is not in this country anymore. I don't know if they can chase after my father out of the US. What I am worried the most are my partnership business with him and the car that I'm driving which is under my father's name.

The franchise business I'm running is the partnership with both my father and me. Would they be able to harm this business if my father's name is on it? Would they be able to touch the business fund even though it is all mine since my father is not here anymore(meaning he doesn't work for this business at all)? I'm worried about them garnishing the income or even just letting the franchisor know about this issue.


What if I change it to sole enterpreneurship(sp?) by deleting him? Would this keep them away from my business, or is it too late to change anyway? Could they take my money then because the source of my money is the income from this business where both my father's name and my name are on the documents?

So frustrated... :(

[joshdom]

They can't do anything against you. They could only take money from you if you signed a contract agreeing to be guarantor for that debt. If you have any issues with the bank, a threat for civil proceedings is often all it takes but if nothing, then yes you definitely have a case.

[joshdom]

In relation to the business, they would have to go to court and ask your dad to appear. He should go and tell them he has no money (he will have to fill in an income form). If he cannot pay the debt it will be written off. If the court decides the casino are entitled to a share in the business, then they are entitled to it. Your father could be extradited back to the us but for a small amount like this it is highly unlikely. The court can decide against him in his failure and anything in his name can be taken until the sum of the debt is recovered. The only way for you to be 100% safe is for your dad to declare himself bankrupt or pay the debt. Any further questions just ask

[Zazonker]

Interest in a partnership is an asset that can be assigned through appropriate legal action. Should they go that route and win, they could become your "economic" partner, replacing your father's interest. Depending on how the business is set up, that would probably give them the right to half of the profit from the business and half the profit if you ever sell. It wouldn't give them the right to participate in the business or in management of it. Profit from current operations would not include wages earned for your work, so if everything you take out of the business is wages or salary and your father is drawing nothing, you probably don't have a profit -- but the way you show these things on your books can affect this.

Can they harm the business? Well, yes. You can see how messy the above could get when you actually start living through it.

Since you are not currently a party to the action against your father. I would recommend converting to a sole proprietorship. Your reason for doing such should be that your father left the country and the business and, at the time he left, there was no equity in the business. (There may be gift tax issues here, but I'm guessing that it is small enough so it doesn't matter).

This would not guarantee that you have no problem. But, if the casino never identifies that your father used to be part owner of the company, they wouldn't have the info to raise the issue. If they do raise the issue, you can argue that there was no value in the business - first with them, then in court. There is also an issue that they would have to deal with concerning the timing of the judgement vs the timing of the transfer of the business ownership. If you win, you are homefree. If you lose, except for court costs you are no worse off than you would have been had you not done it.

[hwangong]

Thank you all for your help!
I would take your advices.
Thanks again. :)