The U.S. Bankruptcy Code does not address or govern the requirements for formation of a corporate entity in California. As noted above, it therefore California law that will govern a creditor’s action to determine whether an individual debtor or a parent or subsidiary...
As we have written before here, California courts have elaborated a two-part test for use in considering whether or not to allow a creditor to pierce the corporate veil in a collection effort. This test requires the creditor pursing the assets of an individual debtor...
Piercing the corporate veil is a poetic term for an attempt by a creditor to legally prove that a corporate entity lacks a separate identity from its owner or principal. In Chapter 7 or Chapter 13 bankruptcy matters, it is sometimes necessary to prove that an...
It’s common for businesses to acquire quite a bit of debt when first starting out. When businesses take on debt it’s referred to as commercial debt. If you’ve gotten behind on your business debt payments, you’ve likely received calls from debt collection agencies....
Collecting a debt can be hard work, particularly when the debtor is out of state. If you have successfully obtained a judgment against a party that owes you money, you have a right to collect that judgment – regardless of where the debtor is located or if your...
Some businesses fail to follow up on collection matters for fear of coming off as “too aggressive” or unsympathetic to a business’s financial situation, especially during these uncertain times. However, neither of these approaches need to be the case. Experienced...
Most businesses do not want a delinquent commercial account on their record, nor do they yearn to file a lawsuit to collect money. It is critical, however, that commercial debt collection be handled efficiently and with speed to ensure that a business does not suffer...
Are you struggling to collect on a business debt? You may be able to find legal recourse under the Uniform Commercial Code (UCC). The UCC is a comprehensive set of laws governing all commercial transactions in the United States, including secured transactions. A...
Parties who are owed commercial (business) debt have several judicial tools that can be used both before bringing a lawsuit and after winning a lawsuit over the debt. A party seeking to collect money owed but not yet paid from a commercial business may choose to...
Commercial debt collection refers to debts that one business owes to another. Often, this is a debt for goods or services that the purchaser never pays to the supplier. Business owners in Los Angeles are often focused on receiving prompt payment to avoid having to...
