Legal Question in Business Law in California

Corporate Liability after Dissolution

I own a company and sold products to another corporation. Shortly after purchasing many products from me, the corporation filed a Chapter 7 because of their personal debts and listed my company as a creditor. Under Chapter 7, the debts of the corporation could not be discharged and requires a dissolution of the corporation. After the bankruptcy was closed, they dissolved the corporation. Yet, before the bankruptcy was closed, the party filed an application to start a sole proprietorship under a similar company name, this, I suspect, to continue the flow of income from the dissolved corporation through their corporate customers. After all, they are still using the same corporate phone numbers and employees. Do I have a right to file a claim against the new sole proprietorship? Would I have to prove that this is the case, or is it obvious since the company name is similar and the phone numbers are the same? How should I proceed?


Asked on 6/17/09, 8:26 pm

1 Answer from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Corporate Liability after Dissolution

How should I proceed?

By consulting with a bankruptcy 'litigation' specialist to sort out what, if any, rights you may have to object and seek redress in the BK court, and what motions and proceedings it will take to try to enforce them. Simply using a similar name, using the old customer list, and hiring the old employees is not necessarily evidence of BK fraud, so you'll have to have a lot more info to work with.

Read more
Answered on 6/17/09, 9:11 pm


Related Questions & Answers

More Business Law questions and answers in California