Corp. judgement (attorney, transfer, costs)

[mark stevens]

I lost a lawsuit to one of my former workers. He will soon be trying to levy my buisness bank accounts. I have already opened new ones but should I close the account he knows about or or keep them open with small amounts to try and throw him off the trail? Also my buisness is a corporation so I asume he has no rights to my personal accounts, correct? he has callled my personal bank told them he was me and asked for the ballance of my accounts.

[thepinksquid]

Was the lawsuit addressed to you personally or to your business?

[esmith143]

Originally Posted by mark stevens

I lost a lawsuit to one of my former workers. He will soon be trying to levy my buisness bank accounts. I have already opened new ones but should I close the account he knows about or or keep them open with small amounts to try and throw him off the trail?

I am not a lawyer, but I suspect that either option will end up costing more than if you stop playing games and pay up what you owe.

Also my buisness is a corporation so I asume he has no rights to my personal accounts, correct? he has callled my personal bank told them he was me and asked for the ballance of my accounts.

Not necessarily. See here: A California Corporation Provides Asset Protection, But It Can Be Lost - Piercing the Corporate Veil

He may also be able to challenge transfers from corporation accounts into personal accounts.

Next time around, form an LLC instead of a corporation.

[earlyretirement]

Yeah, I'm also curious to know if the lawsuit was addressed to you personally or towards the corporation?

I agree with the other poster that mentioned you should have set up an LLC. I've set up several LLC's and they are really great if you set them up properly, don't "Pierce the veil" and keep things separate. They can be very powerful if well utilized.

It sounds like you should be talking to an attorney and you don't have one (it might be why you lost your case). I'd recommend talking to an attorney about this.

Also, if you lost the lawsuit, I'd recommend doing the honorable thing and paying him what you owe him. No need to "throw him off the trail". You lost and you need to pay up. Do the ethical thing. At this point it doesn't matter who was right and who was wrong.....you lost and are ordered to pay him. Don't make the situation worse by not paying. You could incur more legal bills and court costs or worse by not paying. Or worse, have a lien put on your car, property, etc. If you can't afford to pay all of it, work out a payment plan with him. JMHO.

Good luck.