Legal Question in Credit and Debt Law in California
I own a small sole proprietary internet business that over the last 3 years has been collapsing. This is due to a market change in my industry I did not foresee. I have tried to keep my head above water by paying everything with my own credit cards. I am now over $60,000 in debt and will likely file for bankruptcy. I fear I will lose my business when I file, but that�s a whole other story. Today I got served a summons for a bill from 2007 that I neglected to pay for inventory. Seriously, i forgot all about it and they only contacted me a few months ago to try collecting on it. The weird thing is they left it at my Mail Box Service (NOT a post office box), and never got one n the mail. It was filed on February 22, but I did not get it until March 5th.
In any event it also has my MOM�S name on it! She has nothing to do with my business and I can only assume her name is there because a few years ago she put my name on her bank account in case something ever happened to her. However, we realized that wasn�t a good idea and we did take my name off last year and instead filed a Power Of Attorney. Her name is not on anything of my business or personal credit and vice versa. Obviously she is freaking out about this.
Any suggestions on how to get her name off of this, and if I do file for bankruptcy, do I need to file before the 30 days from the filing date of this summons?
Any help would be appreciated. I had a very successful business for 10 years. Sadly, 5 years ago the market completely changed, and instead of letting it go, I tried to salvage it� and got myself way over my head. I don�t think I have slept a night of sleep in a year. I am very stressed and panicked, and this summons didn�t help any. Then again, maybe it is what I needed to start the bankruptcy. I NEVER thought this would happen t me. I can�t even afford to pay my rent right now, let alone hire an attorney!
Any help or suggestions would be appreciated.
1 Answer from Attorneys
Your mom should file an answer indicating that she is not an owner, partner or officer of the company and asking for the matter to be dismissed as to her. She could call the attorney and explain and he might dismiss as to her, but if not, then she should answer to protect herself. If you plan to file bk, it can be filed even after the judgment is entered against you. To protect any assets, file the bk before they try to enforce the judgment by garnishing wages or liening property. Los Angeles County periodically has free clinics to help you file bk on your own. Consumer Law Project can be contacted at ph: (213) 385-2977,
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