2007-08-16 06:34:37 · 5 answers · asked by Huynh T 2 in Politics & Government ➔ Law & Ethics
Not expressly. The lawsuit will continue against the entity and if judgment is granted, the person who wins gets in line with the rest of the creditors as a judgment creditor (behind secured creditors in most situations). Therefore, depending on the deal worked out with the bankruptcy trustee, and the assets of the corporation, the creditor may get all or a portion of the proceeds paid. Also, there may be a way to "pierce the corporate veil" and obtain recovery from the board members, members or owners of the company, depending on the factual situation. A lawyer will help you decide whether recovery is likely against the company and/or key individuals.
2007-08-16 06:47:51 · answer #1 · answered by Tara P 5 · 0⤊ 0⤋
no can not get out, but if the company does not have the resources to pay the verdict, then companies goes bankrupt assets dived among creditors etc
then the question becomes can you pierce the corporate veil and sue the owners personally? fact sensitive on that one
2007-08-16 13:45:33 · answer #2 · answered by goz1111 7 · 0⤊ 0⤋
Generally yes, but it depends upon the nature of the liability. Some liabilities arising from fraud or illegality are not dischargeable.
2007-08-16 13:43:39 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If they are incorporated then the company will be sold and the assets spread around to there creditors...
2007-08-16 13:41:03 · answer #4 · answered by Anonymous · 0⤊ 0⤋
NO!
A judge will see thru that and not allow it to negate the law suit.
It's immediatly considered evasion, and not permitted.
2007-08-16 13:42:16 · answer #5 · answered by ed 7 · 0⤊ 1⤋