Legal Question in Construction Law in California
California building contractor
I had a sole proprietor construction company few years ago and I have a money judgment to pay by court order and i have been making payments every month, one time I was late on one payment and they suspended my contractor's license.
Lately I formed a corporation as a responsible managing officer and i inactivated the old license. If i default to bay the rest of the judgment can they suspect the corporation? any advice will be greatly appreciated.
3 Answers from Attorneys
Re: California building contractor
Ultimately, the only ways to shake the judgment will be paying it, filing bankruptcy, or hoping the judgment will expire without being renewed. I do not know whether stopiing payment could result in a suspension of a corporate license based on your being the RMO; perhaps not, and it might be worth a try (how bad is the downside for you?), but if the judgment creditor wants to get paid bad enough, it will find anoher way like garnishment of your draws.
Re: California building contractor
Ultimately, the only ways to shake the judgment will be paying it, filing bankruptcy, or hoping the judgment will expire without being renewed. I do not know whether stopiing payment could result in a suspension of a corporate license based on your being the RMO; perhaps not, and it might be worth a try (how bad is the downside for you?), but if the judgment creditor wants to get paid bad enough, it will find anoher way like garnishment of your draws.
Re: California building contractor
I have a client whose contractor's license has been revoked for a reason similar to yours, having a judgment against him. We advised him to file for bankruptcy to discharge the debt, at which point he can get his license renewed. I'll be glad to discuss this and other options. David Burkenroad
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