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The defendant is CEO of a corporate, he transfer all his personal cars, house, bank account ets… and company goods to his family

Sylmar, CA |

The defendant is CEO of a corporate, he transfer all his personal cars, house, bank account ets… and company goods to his family member or friends name. He came to court tell the judged he is unemployed and cannot pay what he owed to plaintiff. You think the judge he is going to dismiss the case?

Attorney Answers 3

Posted

No, I do not think the judge is going to dismiss the case, even if the CEO was lying. You don't state the procedural context in which the case is pending, but most likely, the court will ultimately grant a judgment in favor of the plaintiff and against the CEO defendant, since inability to pay would not be a viable defense.

After obtaining a judgment against the defendant, it will probably be necessary to file a new/separate lawsuit for fraudulent transfer/fraudulent conveyance in order to collect on the judgment. A fraudulent conveyance is a transfer by the debtor of property to a third person undertaken with the intent to prevent a creditor from reaching that interest to satisfy its claim.

http://www.avvo.com/legal-guides/ugc/fraudulent-conveyance-in-california?ref=kb_serp_title_
1

http://www.avvo.com/legal-guides/ugc/fraudulent-transfer-and-fraudulent-conveyance-in-california?ref=kb_serp_title_3

Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is general in nature and is not intended, nor should be construed, as legal advice for a particular case. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, consult with your own attorney.

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Hillary Johns

Hillary Johns

Posted

Assuming that what the defendant is saying is true. I handle lots of business and family law trials; it's not unusual for a defendant to cry poor when it's completely untrue in these types of cases. In fact, the converse could be the case.

Posted

This appears to be a business litigation question, not an "incorporation" question. You have not provided enough information to determine what a judge might decide to dismiss the case.

You need to consult with an atttorney who engages in business litigation and get a legal opinon. Avo is not the place of an answer to this type of questioin.

Good luck!
Phillip M. Smith Jr.
Los Angeles Tax & Business Attorney
Licensed in the United States Tax Court
www.culvercitytaxandbusinesslaw.com
www.corporateattorney.com
www.worlclasslawyers.com
Call: 323-292-4116 or 562-505-1004

THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can only be provided after consultation by an attorney licensed in your jurisdiction. The answer to question does not create an attorney-client relationship or otherwise require further consultation. Mr. Smith is licensed to practice law throughout the state of California with offices in Los Angeles County. He is authorized to handle IRS matters throughout the United States, and is also licensed to practice before the United States Tax Court. His phone number is 323-292-4116 or his email address is philsmithjr@worldclasslawyers.com.

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Posted

Cases don't get dismissed because of an inability to pay a judgment. And in CA, judgments are good for 10 years, renewable for another 10, and they accrue post-judgment interest at the rate of 10%, so this isn't a viable defense strategy.

You provide no facts about the substance or merits of the case, That's what determines whether the plaintiff's case survives or not.

If you're the plaintiff, see a business litigator to get your case on track and collect any judgment you end up getting. It may be appropriate to seek pre-judgment remedies now, such as attachments of property, but that's for your own lawyer to decide.

Avvo doesn't pay us for these responses, and I'm not your lawyer just because I answer this question or respond to any follow-up comments. If you want to hire me, please contact me. Otherwise, please don't expect a further response. We need an actual written agreement to form an attorney-client relationship. I'm only licensed in CA and you shouldn't rely on this answer, since each state has different laws, each situation is fact specific, and it's impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue.

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Hillary Johns

Hillary Johns

Posted

Yes. Hire a lawyer.

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