Is taking a company to court that will file bankruptcy worth it?
A LLC in Pennsylvania owes us 00.00 and we were debating taking them to small claims court (district magistrate). I am 99% confident that we would win. However, it is likely that the LLC is going to file bankruptcy. My questions are:
(1) Will the bankruptcy vacate/eliminate the judgment?
(2) Will the judgment show up on the owners credit report or are they protected due to the LLC nature of their business?
My concern is wasting the filing fees to win the judgment only to get NOTHING in return. I obviously want paid back, but in the absence of that I would at least like this to be on their credit report but I’m not sure how much the LLC protects the individual owners. If they are abandoning the business, what protects us as consumers?
Any thoughts?
THANK YOU in advance for any advice/info!
The filing will wipe out your judgement, and the owners are not responsible anyway…only the LLC.
Sorry.
If they file bankrupcty before you can get your settlement then you will get nothing from them, however if it can all get through court quickly and their filing bankruptcy is not right around the courner then you can get the money and once you have it, it cannot be taken away. If they are actually bankrupt then there is no money to pay you back though so in the end even if you win they may not have the money to pay you back.
if you want a chance to get ANYTHING – you better bring suit BEFORE they file – you will at least be on the list to share in liquidation – probably very little though – if you do nothing after that point, you would get nothing –
you can always try and keep track or the principal owners/mgmt and see if they try and start a new company later and then do everything you can to warn people in your business not to deal with them
hi,
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