creditor owed money by a company who fake dissolved
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creditor owed money by a company who fake dissolved
I’m a creditor Dane county, WI owed money by a corporation that supposedly dissolved. I found out they were sneaky. The registered agent of the ‘dissolved’ corporation created a new corporate identity and transferred old corporate assets to the new entity to evade creditors. old business never closed – ‘new’ business remains, has similar name operates at the exact street location as old company under the old signage. Which WI law was broken here?
Asked on August 26, 2019 under Business Law, Wisconsin
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
You may well be able to "pierce the corporate veil" and sue the new corporation for the debts of the old. This is a very complex doctrine, and so at the risk of oversimplifying it, the law does not let the corporate form to be deliberately used to defraud creditors. If you can show that the "new" company is essentially the old one under a new name and took over the assets of the old one, you may be able to get the court to allow you to press you claim against the new corporate entity. A lawyer would be very helpful in doing this; if the amount at stake is not worth hiring a lawyer, Google "piercing the corporate veil Wisconsin" to see the law on, and what you need to prove, this.
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