Does my closed business have to bring records to small claims court to resolve a bill?
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Does my closed business have to bring records to small claims court to resolve a bill?
A friend and I had a corporate business that closed 2 years ago due to ill health. It was dissolved by the state. I signed a personal guarantee for an open-end business charge account. The bill is $800, plus court and attorney fees. The creditor got a judgement against me in small claims court. I am now disabled and unable to pay and had to file personal bankruptcy. The attorney now wants all the business documents for the last 18 months. Can’t I file a motion to dismiss or something like that since the business is closed? I can’t afford an attorney.
Asked on August 18, 2011 Illinois
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If you filed for personal bankruptcy and you have not had a discharge of your debts yet, there is an automatic stay under 11 U.S.C. section 362 as to all legal proceedings against you including debt collection proceedings.
If the requested documents pertain to your own personal documents, the attorney is not entitled to them if you are in a bankruptcy proceeding personally or have been discharged. If the requested documents pertain to the dissolved corporation and there is no court proceeding or judgment against it by the credit card company, the attorney is not entitled to this information as well.
You should advise the bankruptcy trustee handling your bankruptcy as to what this attorney is requesting in that he might be in violation of your bankruptcy's automatic stay provisions.
Good luck.
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