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tonsers
Posts: 431
Registered: ‎02-07-2008
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Corporation's judgement on Officer's account?

Just looking through my dad's credit report, I see that there is a judgement that was actually for the corporation that he is Presdient of.

 

I checked out the paperwork that was filed with the court, the person who sued listed the debtor as:  "Company Name/Dad's Name" - is this correct since it is a corporation?

 

Obviously this should have never gotten to this point (his name should have been deleted before it went to court) but he didn't get the chance.  Long story that I'll explain if more info is needed.

 

At this point, is there anything that we can do to get this off of his credit report?  They are hoping to refinance at some point and this is a major baddie.

 

Thanks in advance for any help you can offer!  

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tonsers
Posts: 431
Registered: ‎02-07-2008
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Re: Corporation's judgement on Officer's account?

I should also add that this judgement has been satisfied by the corporation.... if that matters! :smileywink:

 

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203bravo
Posts: 736
Registered: ‎08-25-2008
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Re: Corporation's judgement on Officer's account?

It may have some impact depending of if this was your dad's company or if he was simply an employee.  Also, how the suit was filed will be important - if it was your dad's company and not a LLC or INC then your dad would most likely automatically be heald liable.

 

If your dad was an employee - was he personally named as a defendant, if he was then he is liable, but there there should be a seperate verdict and judgement just for his part.

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tonsers
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Re: Corporation's judgement on Officer's account?


203bravo wrote:

It may have some impact depending of if this was your dad's company or if he was simply an employee.  Also, how the suit was filed will be important - if it was your dad's company and not a LLC or INC then your dad would most likely automatically be heald liable.

 

If your dad was an employee - was he personally named as a defendant, if he was then he is liable, but there there should be a seperate verdict and judgement just for his part.


Thanks, bravo, for the response.

 

He is not just an employee of the corporation, he and my mother own it.  It is a California Corporation.  The defendant listed on the court paperwork was "Company Name/Dad's Name" in the same line.  It is on the business credit report as well as the company credit report.  So it sounds like there is nothing he can do???

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203bravo
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Registered: ‎08-25-2008
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Re: Corporation's judgement on Officer's account?

how was the company incorporated?  i'm assuming that they at least used a TIN since the business has a report.  Also, what was the case?  was it by chance a creditor that was collecting a default?  Usually creditor will require the ower to be jointly liable for the accounts for small businesses.
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tonsers
Posts: 431
Registered: ‎02-07-2008
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Re: Corporation's judgement on Officer's account?


203bravo wrote:
how was the company incorporated?  i'm assuming that they at least used a TIN since the business has a report.  Also, what was the case?  was it by chance a creditor that was collecting a default?  Usually creditor will require the ower to be jointly liable for the accounts for small businesses.

Bravo, I'm not sure how the company was incorporated???  It's a CA corporation, established 35 years ago.  They have several employees - but my parents own all the stock.

 

I believe that a TIN has to do with taxes?  (Please excuse my lack of knowledge on this - the whole corporate thing is kinda foreign to me!).  I don't know about TIN, but there is a Federal ID# on all of their tax documents... maybe this helps?

 

Thanks!

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tonsers
Posts: 431
Registered: ‎02-07-2008
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Re: Corporation's judgement on Officer's account?


203bravo wrote:
how was the company incorporated?  i'm assuming that they at least used a TIN since the business has a report.  Also, what was the case?  was it by chance a creditor that was collecting a default?  Usually creditor will require the ower to be jointly liable for the accounts for small businesses.

As far as what the case was - it was for a product that was not paid for.  The corporation did pay after it appeared on the credit report.

 

FWIW, this was not even the company's debt - but that's some drama for a different thread.  Just wanted to start with this to see if my dad could get off the hook...

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llecs
Posts: 32,869
Registered: ‎08-04-2007
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Re: Corporation's judgement on Officer's account?

As hinted, he could have been listed as a co-defendant.
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tonsers
Posts: 431
Registered: ‎02-07-2008
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Re: Corporation's judgment on Officer's account?

Yes, I guess he was listed as a co-defendant - I just I was just misinformed - I thought that if it was a corp, then judgment could not go against officers. 

 

Oh well, there is an alternate approach, although less desirable.  I'll start a new thread for it.

 

Thanks for your help!

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203bravo
Posts: 736
Registered: ‎08-25-2008
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Re: Corporation's judgment on Officer's account?

Tonsers -

 

I saw your other post and choices are limited since the judgement has been paid.  Could move to have it vacated at this point - that's about the last recourse.

 

Best of luck.


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