Skip to main content
Charles Alexander Naegele

Charles Naegele’s Answers

342 total


  • Could I demand all the documents from Junk Debt Buyer in Court?

    Dear Experts, I am sued by a JDB through a Law Office in San Jose, CA. As with many others, I panicked and did not know what to do (including posting questions here or consulting a Lawyer.) I filed general denial answer and served plaintiff Bo...

    Charles’s Answer

    If you believe that you owe the debt, liability or whatever they are suing you for and you think you might lose at trial, you may consider filing for bankruptcy before a judgment is entered against you. This is because after a judgment is entered against you, if you file for bankruptcy, the creditor can file a lawsuit against you in bankruptcy trying to get their debt out of bankruptcy. If there was a prior state court proceeding and a fraud judgment, the bankruptcy court won't re-litigate the merits of the issue and as a result you may be out of luck. By filing before a judgment is entered against you, it is much harder for the same creditor to prove fraud in the bankruptcy court (which they must in order to win) because its a tougher standard to win on.

    I would consider hiring an experienced trial attorney first (if you don't already have one), which can get expensive if they know what they are doing, and simultaneously consult with a bankruptcy attorney to evaluate your options right away.

    See question 
  • Can a vendor sue me for balance due from my successor in my business?

    Business in Vegas, being sued in ca. I let my friend take over my business without signing any contracts. She ran the business for a while and then left without paying off a vendor that is now suing me. I have used the vendor before, but t...

    Charles’s Answer

    Yes they can sue you as many Plaintiffs sue everyone in the chain of business dealings as well as joining defendants with the most money to get paid jointly and severally. If the business is in Vegas and the amount is over $75,000, they can try to sue you in federal court under diversity jurisdiction. Otherwise, they'll have to prove you had a connection to them in Nevada and sue you in Nevada (while personally suing you in California or wherever you may be) or sue in California if they have authority to sue there. Depending on how much of a liability it is and your chances of winning, you have to weigh and balance hiring a lawyer to defend yourself in litigation or file for bankruptcy. Bankruptcy is cheaper (usually) and more of a sure thing, but it hurts your credit more than defending the lawsuit. You should contact an attorney to evaluate your options right away.

    See question 
  • LLC or sole-proprietorship for website?

    I run a website and have no debt, i'm not taking out any loans, and my sales/expenses are minuscule. The site is like a forum with social features. Do I need business liability insurance? Will forming an LLC be ideal? What will the site's terms pr...

    Charles’s Answer

    Deciding when to form a limited liability entity (Corporation or LLC) is totally up to you and depends on a number of factors including sales, employees, employment agreements or other contracts, marketing/image, and how you want to grow in the future. If you only intend to do blogging or selling things on eBay, a sole proprietorship may suffice as California charges an $800 tax each year for running corporations or LLCs. However, if you plan to grow and hire employees, or make out of state sales or start a marketing plan, I highly recommend you consider forming a legal entity or at least consult with a lawyer about forming a legal entity right away.

    See question 
  • I am being sued for unpaid wages, restitution to employees. will bankruptcy chapter 7 discharge them?

    one attorney told me "no", another one said, "yes, after 6 months, they are dischargable" which is it?

    Charles’s Answer

    Here are the answers:

    1) Wages Owed to Employees 180 days prior to filing bankruptcy: Priority Claim -- This means it is not dischargeable.
    2) Wages owed to employees earlier than 180 days prior to filing bankruptcy: unsecured - this means it is dischargeable
    3) Judgment for unpaid wages against you - they can start a lawsuit in bankruptcy to have this portion declared non-dischargeable under 523(a)(4) defalcation in a fiduciary capacity - you'll need to fight this battle in bankruptcy court.

    There are special rules for union wages.

    Hope this helps

    See question 
  • Do i have a choice to keep my car & house in chapter 7 bankruptcy?

    my wife owes about $3500 on her car (under her name alone) & is behind 2 pmts. i have an old truck (under my name alone) that is worth about $1000. we need & want to keep them. will they take her car being that she is behind 2 pmts upon filing...

    Charles’s Answer

    You are probably better off in a Chapter 13 bankruptcy which allows you to make up payments over time and keep your house and your car. However, you need to have a minimum amount of income in order to qualify. Chapter 7 can be risky because if you don't make up the payments, the lender can still take your car or house by filing a "motion for relief from stay" and they can also seize it after your Chapter 7 is over in about 3-4 months. Therefore, Chapter 13 is the better option for you.

    See question 
  • What is the average price for chapter 7 bankruptcy for a small business in california, santa clara county?

    i am a small corp & i need to file bankruptcy. i am completely broke & am wondering what is the average cost for bankruptcy chapter 7 in california, santa clara county?

    Charles’s Answer

    You can file a corporate Chapter 7 bankruptcy in which the court basically takes all of your assets and distributes them to creditors or if you have no assets, the corporation basically shuts down. This can be beneficial over "doing nothing" or dissolving your business for a number of reasons, but they are highly fact specific and unique to your situation. The cost is around $2,000 in legal fees and approximately $300 for the court fee.

    See question 
  • I have a judgement against me in small claims for $4000. He levied my checking, now he wants to take my horse. Can he?

    I started making payments last month.

    Charles’s Answer

    If you file for bankruptcy, you may be able to "exempt" your horse using the "wildcard" exemption which would mean he could not take your horse. You should consider bankruptcy in addition to all of your other possible remedies.

    See question 
  • I am a small corp. & am being sued. i have no money, going out of business. where can i get free legal rep to file an answer?

    I am a sub-contractor on a prevailing wage project. i was inexperienced, & hired the wrong employees. they are evil people that know how to con the system & have file fraudalent lawsuits against other companies. about 4 mons into the job, the ...

    Charles’s Answer

    • Selected as best answer

    You should consider consulting with a bankruptcy attorney immediately. Unfortunately, the labor board is very partial towards workers and awarding back pay judgments to employees who the labor commissioner believes were unfairly cheated out of back pay wages. It sounds like this may be your situation and you may have several employment related judgments against you soon.

    It is imperative that you consult with a bankruptcy attorney BEFORE the labor court awards judgments against you because then these same employees can start a lawsuit in bankruptcy court called an "adversary proceeding" to have their judgment declared non-dischageable. The bankruptcy court has to take the facts of a prior proceeding as true in California (9th Circuit law) so you will also most likely lose in bankruptcy court if you wait until a judgement.

    If you file bankruptcy before the judgments, then then your liability towards the contractors will be discharged and they will have to prove fraud or that you cheated them out of money in the bankruptcy court, which is a higher standard and harder to win in bankruptcy court than in the labor court.

    I highly recommend you contact a bankruptcy and bankruptcy litigation attorney immediately.

    See question 
  • I am filing for bankruptcy. Will the labor board decision against me be discharged? that is not the reason for the bankruptcy

    I had to go to this hearing with no notice. and the person that took me stated that he worked 7 days a week, 17 hours a day, and had no records. i helped him because our family is close to his son. we paid $10,000 to repair his teeth from the meth...

    Charles’s Answer

    In addition to the answers provided by the other lawyers below, the person holding the judgment for $135,000 can start a lawsuit against you in bankruptcy called an "Adversary Proceeding" to have the entire amount declared non-dischargeable. If they can prove you were their employer and you did not withhold wages, then they may be successful. In addition, bankruptcy courts in California are required to assume the facts of a prior judicial proceeding as true (to prevent multiple litigation of the same facts), so if the labor board determined that you were the employer of this person, and that you fraudulently withheld wages, then you may have a problem in defending yourself in the adversary proceeding. You should contact a competent bankruptcy or bankruptcy litigation lawyer immediately to determine your options.

    See question 
  • I live in CA and plan to rehab properties in CA and buy rental properties in NV. Should I form an LLC in NV and register in CA?

    Hi, I live in CA and my plan is to rehab properties in CA and buy rental properties in NV. In my case, should I form an LLC in NV and register in CA as a foreign corporation or the other way around? Does it really make sense in terms of saving ta...

    Charles’s Answer

    Doing business in both CA and NV will mean you'll have to probably register in both, no matter what. Generally, there won't be any tax benefit to incorporating in Nevada if you operate a business in California, so if you see yourself doing business initial in California, incorporate there. Then, if you start doing business in NV, you can foreign qualify there later. Otherwise, if you incorporate in NV now, you'll have to foreign qualify immediately in CA and pay CA taxes anyway, and have to file documents in both states.

    Disclaimer: This information is informational and does not create an attorney-client relationship. Mr. Naegele is an attorney practicing in the San Francisco bay area in the fields of taxation, business, international law, estate planning and bankruptcy.

    See question