Entirely Legal
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- era4O4
I just learned that a company can hire you, rack up a ton of debt, and then form a second company that can buy the first company's assets (and not the liabilities) so that they never have to pay you. And it's entirely legal.
How f'n convenient.
- ideaist0
= capitalism!
- dan53820
= fake capitolism, no need to do that if it wasn't for regulations with loop holes.
- bigtrick0
i hope not from personal experience, era4O4?
- Jimbo820
Yep. I know a few people that have been screwed by w*nkers doing this.
- duckofrubber0
The only ways to get rich in America are to screw people over or to inherit money made from screwing people over in the past. Capitalism is about fucking over the many to benefit the few.
- era4O40
Well, now you know one more:
Don,
As far as I understand from your email, you provided services to XXXXXXXXX in 2008. That company is still in existence under the name XXXXXXXXX Holdings LLC, but I do not know if it has any assets to speak of. The company I work for is a separate one that bought certain assets and liabilities of XXXXXX and is operating under the XXXXXX name in the cash advance business. I will not be able to help you in pursuing claims against XXXXXX Holdings.Regards,
Jane
- ukit0
Well the least you can do is publicly humiliate them by printing their actual names, name of the company etc.
- sigg0
launch a relatively large helium filled silver balloon into the air with the companies logo splashed all over it.
from a pay phone make a call to the police saying the company balloon has broken free from its tether and you think a young boy may be trapped inside.
it will make the national news, when it lands they will see there was no boy, they will assume it was a hoax all along and said company will be sued for all it's worth and ruined for life.
pretty simple actually.
- but try to be original, say it's a small girl.kld
- or small woodland animal.WrappedInBooks
- sequoia0
somethings missing here. how can it be possible for them not be liable for the debt?
- floccinaucinihilipil0
"...rack up a ton of debt..."
^ this is the part to avoid. Deposits, billing at milestones, etc.
Sorry that this doesn't help with your current situation.
- NickInfozure0
The company is being fraudulent if they dont pay you, and they can be proved to be able to do so. It might take a while.... but what you are describing is not legal (but does happen).
Normally happens when new investors come in and they dont want to take on the liabilities or the credit record of the original company. Normally in this situation the investors or the founders will front the cash to clear the debts.
- era4O40
No, man. Keep in mind, it would cost me at LEAST their balance to sue them for their balance. So I'd end up in the red just to prove a point...
- I think if you win you are able to sue for your legal fees...I thinkWrappedInBooks
- lvl_130
sorry to here that don. that is some bullshit.
- erikjonsson0
fuck that cock shit.
sorry for you man
- akrokdesign0
they can take out life insurance on you without you knowing, and then collect the cash.
- jerseyred0
I remember reading that a person cannot hide behind the corporate veil of an LLC if it's the case that it's a small company. Sometimes these small LLC's believe that they're protected but I recall reading about a Florida case that argued and set precedent that if an individual, or group of individuals, are the sole owners of the LLC then their actions directly contributed to the crime rendering them unprotected by a corporate veil.
I've also learned of a statute called "theft by deception" which is a misdemeanor that can be used if you've received a bounced check -
Title 17-A, ยง354: Theft by deception
- monNom0
Yeah, that's not how it works (leagally). A purchasing company gets both the assets AND liabilities. They can only have the liabilities removed through the bankruptcy process, which attempts to pay off the creditors from the assets available based on seniority, or to offer the creditors equity in a newly formed company that is unencumbered by prior debts (chapter 11). Essentially, in a chapter 11, everyone agrees to take a percentage loss in return for the possibility of making good on a new, unencumbered company.
Now that's not to say that they didn't fraudulently transfer the assets of the company to another company, while leaving the liabilities in place... essentially stealiing from the creditors, who have first rights to the assets. You'd have to hire a lawyer to try your case, and you're likely right at the bottom of the seniority totem pole. Might be worth talking to somebody about at least getting them in trouble.. not sure who that would be.
In the future get partial payment up front EVERY TIME. Best practice is no materials leave your hands until the full bill is satisfied, though we all know that can be difficult.
- FredMcWoozy0
You forgot about liens.
A lien follows the person not the company.
- Take some business courses so you learn more then one small section of an argument.FredMcWoozy