While I haven’t seen the movie, “You got served” I’m pretty sure it’s different from the legal “serve” that I received today.
This actually wasn’t completely unexpected. About a week ago I received a call from a process server (I was at a BBQ) when she was at my apartment. A week later (Friday’s must be the ideal serving time), she showed up.
The bad news: She served me right in front of my employee.
The good news: She basically just handed me some papers and it totally looked like a courier deal. My employee didn’t even ask anything of it as I quickly jumped back to what we were discussing.
All in all, this actually went down very well. When I missed the “serve” last week I was really freaked out. Looking at the paperwork today though, I’m not too worried.
The lawsuit is Citibank filing a personal judgment against me for one of my business credit cards I had with them. The thing is, I listed all my business debts on my personal bankruptcy filing and so I’m 99% sure that they cannot go after me personally for this debt. I was expecting the “serve” to be at my business, but nope, it’s 100% just at me personally.
Oh, and they listed me as a “married man”. Ha! I wish…
Anyway, I have an e-mail into my bankruptcy attorney to double check that we listed this account, but even if it wasn’t listed I’m pretty sure I can contest the judgment against me (at least personally).
Anyway, it made for a pretty eventful day. I also completely rearranged my home office and I now look out a window and can enjoy some beautiful Seattle sun.
Photo credit: http://www.flickr.com/photos/babygirlvans/
{ 1 trackback }
{ 2 comments… read them below or add one }
How was your business structured legally prior to the BK filing? Was your business a legal corporation in the State of Washington, or were you running it as a sole proprietorship?
If you were running the business as a sole proprietorship, it is my understanding that you have far less protection than if the business had been a partnership (i.e., LLP – Limited Liability Partnership, which is a legal entity for two or more individuals who own a business) or a corporation (i.e., LLC – Limited Liability Corporation, or, what my sister and her husband have as RE brokers, which are “personal corporations”).
If you didn’t incorporate the business and just had a business license and a DBA (known as “doing business as” documentation for the name of your business). As a sole proprietor, then you are and would be responsible for all of the debts, including the credit cards. As a sole proprietor, the credit cards are based upon your personal credit worthiness and score. For a corporation, credit cards and other forms of funding are being provided to what is often an unknown business entity with little or no history, capital or funding.
For a small business structured as a sole proprietor, credit cards offer great benefits – fast capitol for office equipment and paying for the occasional business lunch. Credit cards issued in the business’s name provide a separate account so business and personal accounts and finances are independent, making it easier to determine the business’s financial stability, forecasting P&L, tracking revenue and expenses, and, most importantly, preventing the comingling of personal and business monies come tax time or later if the business owner should be audited.
I know you probably know all of this, but for those who are following your blog and are unfamiliar with how businesses are legally structured and how responsibility for business debts is determined, I hope this is helpful.
So, how was your business previously structured prior to the BK. And, when this is all said and done, will you reorganize the business’ legal structure and if so, how? What has your attorney and accountant advised?
They choose Friday in order to ruin your weekend. This kind of person gets great joy out of causing you misery, and they try to maximize it. That is how they live with themselves, in a kind of upside-down world, where they aren’t the despised being that they truely are.