Q: Can i file small claim against a LLC defendant which the individual "JWS" managing member filed Chapter 7 Bankruptcy?
I filed a small claim against him and his corp A, jointly. After the trail before judgment, he filed Chapter 7, personally and Chapter 11 on Corp A. This stops all collection efforts; however, he has another corp named corp B that he owns 100% which also owes money to me. Can I file sue against the crop B? He is the President and 100% owner on corporate A and B.
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A: First check on both bankruptcies if he declared them as assets in either bankruptcy. If he did not declared the ownership of the Corporation B in his individual bankruptcy, then check if he declared the stock ownership on the business bankruptcy. If he did not declared the Corporation B in either bankruptcy, then you may bring a claim against the Debtor for hiding assets that belong to the bankruptcy Estate. If the Trustee takes possession of those assets, then a distribution to all creditors may be made in a pro-rata basis. If the omission to disclose was willful, his bankruptcy may be disallowed by the Judge.
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