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Can a judgment of sexual discrimination be dismissed in a bankruptcy where the company and owner are named defendants?
Anonymous1 views3 answers
as the named personal defendant can i dismiss the judgment against me with a chapter seven and then prior to judgment let my corporation slip into dormancy by no longer conducting business while opening a new corporation under someone else's name that provides the same service to the same clients in its place?
I agree with Attorney Nachbar. The plaintiff will have a short time to file an adversary proceeding against you to challenge your discharge of this claim. If they do so and prevail, the debt will not be discharged.
I believe your question is whether the judgment can be discharged (dismissal has another meaning in bankruptcy). If the judgment is final and non-appealable, was it recorded in the Bureau of Conveyance? It if is a lien on property, you would have to deal with that. I agree with the other attorneys about a challenge based on "willful or malicious" injury. It would be expensive to defend against such a challenge and you might still have to pay it. As far as transferring the assets to a new corporation, that could be considered a fraudulent conveyance if done before the bankruptcy as, I assume, you are the shareholder and would be entitled to the liquidation value of the business. You would still be the equity holder no matter what the name of the corporation is. the corporation would have to comply with "bulk sale" procedures and receive fair market value for the sale of assets to a new corporation. Better to deal with it than avoid it.
