What is the process to pierce the corporate veil once the corporation has filed Ch. 7 bankruptcy in CA?

Piercing the corporate veil is heavily fact sensitive. There are several factors used to demonstrate this cause of action, including showing that the corporation was undercapitalized, and that there was commingling of funds between the corporation and shareholders and/or officers. The oversimplification is that you must show that the corporation was a sham. The fact that the business failed and was a start-up that would not show profitability for several months is not in itself worthy of piercing the corporate veil.

This is a sophisticated area of law where counsel is likely needed or at the least very helpful. Perhaps an attorney would take it on a contingency basis or as a hybrid (reduced hourly rate combined with a reduced percentage contingency).

You may want to appear at the meeting of creditors and ask questions of the debtor representing the corporation while he or she is under oath. This will give you an opportunity to question the debtor which in itself lets the trustee adminstering the bankruptcy know that there are possible issues with the case. That said, if the business simply legitimately failed and you did not get paid because of this, trying to pierce the corporate veil on your own to recover your money would probably bring you more aggravation than satisfaction.

I would look for local counsel as quickly as possible to discuss the facts in detail because this forum does not lend itself very well to fully answering your question.

This information is not, nor is it intended to be, legal advice. This does not constitute the formation of an attorney-client relationship. You should consult an attorney for individual advice regarding the specifics of your situation