Do we have any opportunity to try and collect from a new LLC?
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Do we have any opportunity to try and collect from a new LLC?
It owed us money ($2k) for work performed 2 years ago. We filed in small claims court, received a judgement and garnishment. Never collected against the garnishment. The bank indicated XYZ’s account had zero funds. XYZ was subsequently dissolved administratively by the state for lack of filing an annual report. This year the company re-opened for business as an LLC. in the same city but at a different location. They are offering same services, have same business name (except now as XYZ International, LLC.) The organizer of the LLC is the same person who signed the original contract with us.
Asked on October 23, 2012 under Bankruptcy Law, Missouri
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If the name of the new limited liability company is the same as the one that you have a judgment against then you can try and levy upon the entity's bank accounty.
However, if the name is different then under the laws of all states in this country you are delaing with a completely different entity where the judgment you have would not be valid for a levy on the new entity's assets. The key is ascertaining from your secretary of state's office if the re-opening of this business is a whole new business or the same. If the same, then your judgment is good for a levy on the entity that just re-opened.
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