Check out some similar questions!

JPhelp · Jul 14, 2011, 08:31 PM

Hi It really is not the same matter, but my ex biz partner owes me about 29k as of now. Since his credit was bad when we had a business together, we used my credit to open a business (business CC, company car, office furniture, cash loan, Ipad and Imac) to get them. Since he and I are split *he also removed me from 50% owner from LLC) without my authorization. He possesses all of them. I claimed them as small claims for now for max of 5k for outstanding balance but he owns a small company and I can't garnish. So if I put a lien on the company, if he tries to dissolve or sell company, am I entitled to get paid? How do you put the lien on him?

ScottGem · Jul 15, 2011, 03:35 AM

First its not a good idea to piggyback your question on someone else's. Especially when they are unrelated. This can lead to confusion. You should start a new thread. So I've moved your question to its own thread in the correct forum.

Did you sue him personally or the company? Is the company a sole proprietorship or LLC or other protected entity? If so you can't attach it.

AK lawyer · Jul 15, 2011, 07:04 AM

Originally Posted by JPhelp

... *he also removed me from 50% owner from LLC) without my authorization. ...

How exactly did he do that? It may be that he did that improperly.

Originally Posted by JPhelp

... but he owns a small company and I can't garnish. ...

Garnishment is a procedure to collect money owed by a judgment debtor to a third party, such as this small company. If, for example, the company owes him money, you could force the company to pay to you what it would otherwise owe to him.

If, on the other hand, you mean "execute", it would depend on whether your judgment is against his company, as well as your former partner individually.

Originally Posted by ScottGem

... Is the company a sole proprietorship or LLC or other protected entity? If so you can't attach it.

Many people misunderstand the corporate veil. It protects owners of corporations (and of LLCs) from liability for company debt. It does not work the other way, so as to shield the corporation from liability for the owners' debts. You can seize the company in satisfaction of the owner's debt.

Originally Posted by JPhelp

... So if I put a lien on the company, when he try to disolve or sell company, am I entitled to get paid? How do you put lien on him?

I don't know if there is a mechanism to put a lien on the company. If there is a "Bulk Sales Act"in your jurisdiction, it is designed to protect creditors in this situation. But in any event, entitlement is one thing; actually getting paid is quite another. He made off with partnership assets which didn't belong to him. What makes you think he will sell or disolve the new company the right way? In all likelihood he would simply sell off the company assets.

I suggest that you find a collections attorney to get what he owes you.

JPhelp · Jul 17, 2011, 05:10 PM

Thank you. AK Lawyer. I spoke with several lawyers and they seeded to tell me it's a hard case. Seizing a company may not work because quite honestly I'd rather disolve but if I do that he will make no money or getaway with all his debts to me...

I honestly do not care how lawyers can collect money for me but I want to make sure every record is in public record. In FL, even though judgement is filed against him, I may not see the money for 10 years and that is too long. I gave him payment plan and that failed, and he also had written agreement and he still failed to pay. I offered a settlement without a lawyer (Certified letters) and no show.

Since all items that he owe, only in my name so perhaps calling a police as a stolen property may work?? I am not sure if this is possible.

I called the local court and thought about filing a replevin of statement but it costs $400 and I can only file up to $5k. Any suggestions?

Fr_Chuck · Jul 17, 2011, 05:45 PM

First what do you have in writing, that the money was "loaned" you still did not answer if this is a Corporation or merely owned.

Also is there a series of loans, did you loan him money for this, then loan him money for that. Can you sue for each loan independently in small claims

JPhelp · Jan 25, 2012, 06:00 PM

I filed a small claim to start then now filed a civil and my lawyer is filling a default because my ex-biz partner never showed up at the court. Since I filed the civil the court has done nothing but asking for default. I feel court is doing nothing but collecting filing fee from me. If anyone has any tips please send my way. I am in this process since last July. I am not sure what to do and feeling depressed and crying hard inside.

ScottGem · Jan 25, 2012, 06:09 PM

I'm not sure what you are expecting the court to do. The court only holds hearings and rules based on the evidence. If the partner has not showed up for court hearings you ask for a default judgment. This should be granted.

The court doesn't collect the judgment for you. you are resp[responsible for that.