Personally discharged, now lawyer suing for business debt included?

[lineenter]

Family business failed. All participants filed CH7 and have been discharged without objection. Included were all business debts that may have been personally guaranteed and those not. This particular debt was included on all and the creditor received notification. There was no objection.

A sheriff arrived at my door this morning. Indicated this was a secondary address. This is my home and was never on any corporate papers. Named in the suit were the company and a family member who was also discharged. I had spoken with this lawyer and told him 4 weeks ago everyone had filed. He was the most obnoxious priXX of anyone during the entire process. He sent a collection notification to my home while I was still in bankruptcy. I called and he said it was legal as it was business. However a previous notice had included the consumer collection clause.

Out of anyone we owed this is the only time anyone has done this. But, I can't live like this. I realize we are not obligated personally, but we have to answer the summons in writing or show up at court. Do we just file Chapter 7 as a business Pro Se to end this?

I think the costs are about $300. Any advice? I don't want to live the next 10 years to worry about having knocks at my door. Would a Chapter 7 business liquidation end all suits once and for all? Business wound down about a year ago.

[keepmine]

I'd turn this over to your bk attorney. and ask how to proceed. You sure need to answer the summons in some way. You don't want a default judgment.

[onlineuse]

HHM can better answer this I think, but what were told is that any contracts/debts etc other than business taxes you don't need to worry about. If you've included them in your personal schedules they had the chance to object personally and did nothing so they're done.

If you are not using the business let them sue and get a judgment, or go to court and try fighting it. They are not suing a person more than likely, they just had to have someone to deliver the complaint to.

Far as I am told, your personal bankruptcies wiped out any liability you would have personally. Other than that, all this lawyer is doing is wasting his or her clients money. If the business is defunct and everyone that they could have sued has filed, they are just wasting money.

HHM may correct me, but my lawyer was pretty clear on this.

The larger point is those that want to argue you don't need to go bankrupt if you have a corporation - yeah sounds good on paper but as many find out they'll still have sheriffs at your door.

[bige1030]

Named in the suit were the company and a family member who was also discharged.

That family member must file a notice of bankruptcy with that court, noting that s/he was discharged. As for the company, they can still sue it.

I realize we are not obligated personally, but we have to answer the summons in writing or show up at court. Do we just file Chapter 7 as a business Pro Se to end this?

The named family member has to answer, noting that the debt was discharged. As for the corporation, you can do nothing and leave the creditor to their own devices to get what they can from the corporate assets left, if any.

The corporation can file Chapter 7, but only individuals can get a discharge in Chapter 7. Businesses do not get a discharge after liquidation. The automatic stay will offer some protection, though - but I don't know if it goes away when the case is closed.

In general, corporations are only discharged if they file Chapter 11 and are not liquidated as a result.

[wrinkleigh]

We were told that this could happen. We can receive a discharge for our "personal" liability, but creditors could still serve us trying to get money from the "corporation".

Our lawyer told us that if this happens, to let him know, he had a nice "drop dead" letter as he called it, to send to them, since our corp is closed with no assets.

Call your lawyer.