If I made a land loan to an LLC and the owners signed a personal guarantee but we foreclosed due to lack of payment, if I received a judgement against the now dissolved LLC, can I collect against the owners?

I made the loan over 6 years ago and we foreclosed 5 years ago. I tried to get in touch with the lawyer we used 3 years ago to see how to proceed and the costs involved but it appears he may have moved. Can you help?

Asked on January 22, 2013 under Bankruptcy Law, Oregon

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

You need to take the paperwork to an attorney to review here.  This is not the forum since things really need to be read to help.  It is my understanding that judgement sin Oregon are good for 10 years.  But I see problems here since although the owners signed the note personally you may not have sued them and a judgement against a dissolved LLC could be an issue depending on where the LLC was incorporated.  For example, if it was a Delaware LLC the law there requires that you  resolve all outstanding judgements so they could not really get away with not paying.  And most states have laws that would "adopt" for lack of a better word - the law of the state in which the LLC was formed.  If there are assets still available is an issue and if you were properly "established" as a creditor at the time of dissolution is also an issue.  Good luck.


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