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Bankruptcy Question

Discussion in 'Business Operations' started by DLAWNS, Nov 29, 2008.


    DLAWNS LawnSite Fanatic
    Messages: 5,780

    I posted a thread in the Commercial lawn forum about being bankrupted. My question is if I was to get a judgment against them before they claimed bankruptcy would they still have to pay or could they just bankrupt the judgment. This is the second time this happened and I'm about fed up. Any other things I can do to prevent this crap from happening?

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    If you have a judgement against them, it cannot be included in a bankruptcy. Judgements, taxes, student loans, are a few of the things that cannot be 'bankrupted'.

    DLAWNS LawnSite Fanatic
    Messages: 5,780

    Thanks for the reply, man. One more question, is that a state or federal law? Could it be different from state to state? Just wondering. Thanks again!
  4. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Messages: 4,891

    the judgement would be discharged in a bankruptcy.

    If for any possible reason it wasnt. You will be so far down on the creditor list that you will never see a penny,.

    DLAWNS LawnSite Fanatic
    Messages: 5,780

    Awesome, lol. Thanks for the info.
  6. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    Yeah, you can show up in court the day those folks go through the process
    of declaring their bankruptcy and contest it, which few (read: no) creditors ever do.

    That is a bankrupcee's worst fear, that a creditor will actually show.
    Most never do, truth be known it's due to them being out of state and reasons like that,
    but you have every right to be at their bankruptcy hearing.

    You may wish to consult with an attorney as to your rights, it is even possible
    the state attorney can help you, might ask at the courthouse long before the
    day just to see what they tell you.

    DLAWNS LawnSite Fanatic
    Messages: 5,780

    Thanks for the advice...I plan on showing up even if I don't get a dime, at least it makes me feel a little better.

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    That's wrong....legal court decisions like judgements CANNOT be included in a bankruptcy. Of course, doesn't mean you'll ever get paid, just means that they still owe you and can't get out of that fact.
  9. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Messages: 7,646

    The "judgments" that cannot be discharged in bankruptcy are judgments for intentional injuries such as assault, debts incurred by fraud, alimony/child support and a few more. Judgments for ordinary debts, breach of contract, etc., are usually discharged in bankruptcy.
  10. old oak lawn

    old oak lawn LawnSite Senior Member
    Messages: 703

    This is the correct. DLAWNS, if they filed bankruptcy and claimed your business as a debt your $$ is gone. showing up for Court is wasting your time. jmo. good luck

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