Legal Question in Business Law in California
my husband and I owned a company that failed in 2009.
we have not yet closed the books on said company as we are still dealing with the CA state board of
equilization, and our home is in forclosure
The company borrowed $8000.00 from my grandmother but only $2000.00 was repaid. She died 2010
my uncle is the executor of her estate (he worked with us but had owned no part of company) wants to sue for the rest. He is also owed money by the company for wages lost
we have no assets to pay this debt and there are 6 other lawsuits aganinst us
what is my response to his possible suit
2 Answers from Attorneys
Sounds like you need to be calling a bankruptcy attorney rather than looking for internet Q&A solutions. You probably should have at least consulted with a bankruptcy attorney in 2009. Don't put it off any longer.
You didn't mention one rather important fact -- was/is the business a corporation, LLC or partnership? This has a lot to do with personal liability, as you no doubt know.
With lawsuits, perhaps the most important single piece of advice is to make a defense rather than lose them by default. This is almost always the better course, even if only to give you a stronger posture for negotiation of an out-of-court settlement.
Depending upon (1) whether any of the suits allege (nondischargeable) fraud, and (2) what other assets you have, bankruptcy may be you best (or only?) alternative, and as Mr. McCormick says, it is time to have an initial discussion with a bankruptcy attorney.
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