Is Getting Judgment Against Dissolved Corporation Stay or Discharge Violation?
Posted: Wed Jan 18, 2017 4:48 pm
Creditor files a lawsuit against a corporation. Corporation is dissolved
and the sole shareholder assumes all debts to the extent of the
corporation's assets and creditor is notified of the bankruptcy.
Shareholder files Chapter 11 case. Creditor files proof of claim in the
bankruptcy case, but a few days later gets judgment against the corporation
and records it less than a month after filing the proof of claim.
Ultimately, a plan is confirmed and a discharge received. Fast-forward 5
years. Judgment against corporation is still sitting in the county records
and the debtor wants to sell his real estate along with the business
formerly held by the dissolved corporation housed in such real estate (to
pay off all debts, actually). Escrow and title now say the holder of this
judgment against the corporation needs to submit a zero demand letter or a
satisfaction of judgment or rescission for payment out of the proceeds not
to be made because the business assets are being sold though the bulk sales
act has already been complied with re notice.
Was the entry and recordation of the judgment under the name of the
dissolved corporation even after a proof of claim for the same debt was
filed in the owner's case a stay violation?
Is the refusal to provide a zero demand letter a discharge injunction
violation?
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WRITING.
Giovanni Orantes, Esq.*
Orantes Law Firm, P.C.
3435 Wilshire Blvd. Suite 2920
Los Angeles, CA 90010
Tel: (213) 389-4362
Fax: (877) 789-5776
e-mail: go@gobklaw.com
website: www.gobklaw.com
**Certified Bankruptcy Specialist, State Bar of California, Board of Legal
Specialization*
*Board Certified - Business Bankruptcy Law - American Board of Certification
*Board Certified - Consumer Bankruptcy Law - American Board of Certification
Commercial Litigation
Estate Planning
Outside General Counsel
WE ARE A "DEBT RELIEF AGENCY" AS DEFINED BY FEDERAL LAW.
SERVING BAKERSFIELD, LOS ANGELES, ORANGE COUNTY, RIVERSIDE, SAN BERNARDINO
AND SANTA BARBARA AND THE WORLD FOR CHAPTER 11 AND 15 CASES.
Creditor files a lawsuit against a corporation. Corporation is dissolved and the sole shareholder assumes all debts to the extent of the corporation's assets and creditor is notified of the bankruptcy. Shareholder files Chapter 11 case. Creditor files proof of claim in the bankruptcy case, but a few days later gets judgment against the corporation and records it less than a month after filing the proof of claim. Fast-forward 5 years. Judgment against corporation is still sitting in the county records and the debtor wants to sell his real estate along with the business formerly held by the dissolved corporation housed in such real estate (to pay off all debts, actually). Escrow and title now say the holder of this judgment against the corporation needs to submit a zero demand letter or a satisfaction of judgment or rescission for payment out of the proceeds not to be made because the business assets are being sold though the bulk sales act has already been complied with re notice.Was the entry and recordation of the judgment under the name of the dissolved corporation even after a proof of claim for the same debt was filed in the owner's case a stay violation?Is the refusal to provide a zero demand letter a discharge injunction violation?
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