company changing status

[dtm1966]

What is the name of your state? Texas

I am owed about $3000 from a company called CINCO. When I went to file a case in small claims court my research discovered that the company had had it corporate privileges suspended two years before the debt was incurred and its charter revoked one year before the debt was incurred for failure to pay franchise taxes. So I filed the claim against the sole owner and operator personally for the debt. After being served he did the following things in this order: paid the back taxes and had the corporate charter reinstated, declared CINCO bankrupt and then declared personal bankruptcy.

So of course the small claims court case was stopped. He went through with the personal bankruptcy but has filed a motion to dismiss the CINCO bankruptcy.

Questions:

Can I file a small claims case against CINCO for the debt now that it has been reincorporated. Since the debt was incurred when he was operating CINCO as a business not a corporation and he was personnaly lible, does his personal bankruptcy wipe the slate clean.

If I can file against CINCO and if CINCO looses, is there any way to collect the money. CINCO is a contracting company which owns no assets. It makes about 45% markup on personnel it places at other businesses. CINCO is still doing business and collecting income but the owner can probably pay himself an income large enough to prevent the company from showing any sort of profit.

Thanks

 

[JETX]

Your questions raise some fairly complex issues of 'alter egos' and mixed ownership that really require a complete review of the timelines and party's involved. However, I will try to offer some 'general' information.

Can I file a small claims case against CINCO for the debt now that it has been reincorporated. Since the debt was incurred when he was operating CINCO as a business not a corporation and he was personnaly lible, does his personal bankruptcy wipe the slate clean.

That depends on the specifics of the original claim. Your post now implies that there were possibly THREE separate entities involved.... the corporation, the individual and possibly "operating CINCO as a business".
If the cause of action arose against the individual or his/her d/b/a (a business), then the debt would only apply to the individual... and be included in his bankruptcy. However, if the cause of action arose against the corporation, then the individual nor the d/b/a (business) would be normally liable for the corporate debt.... and exempted from his personal bankruptcy.

If I can file against CINCO and if CINCO looses, is there any way to collect the money. CINCO is a contracting company which owns no assets. It makes about 45% markup on personnel it places at other businesses. CINCO is still doing business and collecting income but the owner can probably pay himself an income large enough to prevent the company from showing any sort of profit.

Probably. Most businesses own some type of equipment... computers, cash registeres, furniture, etc. I get a 'Writ of Execution' and then simply step in and seize any of their assets (company assets have NO exemptions!!). The first two things I take in this situation is their entire network (server, backup tapes, etc.) and their 'accounts receivable' records. This causes them a severe hardship in trying to continue operations, and the AR file shows their clients and incoming funds. I then garnish those incoming payments until the judgment is paid.