I am trying to negotiate a settlement agreement with a corporation that I have discovered is suspended by the secretary of state

Asked about 3 years ago - Van Nuys, CA

The settlement letter and check they have sent me is unacceptable. However I am worried that I could end up with nothing if the company goes bankrupt. The question is , if I cash the check, can I later void the settlement agreement since the corporation was suspended at the time the agreement was made?

Additional information

By the way this is happening in the state of California. This is a very bad company and the only reason they are settling is because I have indisputable evidence of fraud.

Attorney answers (2)

  1. Frank Wei-Hong Chen

    Contributor Level 20
    Best Answer
    chosen by asker

    Answered . If you signed the settlement agreement already, you generally cannot back out.

    You do not indicate the reason or reasons why the settlement check is unacceptable. However, the downside of not taking settlement money is that you will likely not be able to collect anything (or the cost of litigation will far outweigh your recovery) such that it iwould not be economical nor prudent to push the suspended corporation into litigation.

    The information presented here is general in nature and is not intended, nor should be construed, as legal advice.... more
  2. Mitchell Paul Goldstein

    Contributor Level 20

    1

    Lawyer agrees

    1

    Answered . Corporations do not get discharges in bankruptcy. No one can discharge a debt that is proven to based on fraud. However, the corporation can liquidate and leave you with little or nothing. If you accept the check, then you agree that it settles the amount owed. You cannot reverse your agreement later.

    Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice.... more

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