Suing A JDB - Can They Discharge Judgment in BK?

[queenofwands 13]

Just curious, if I am successful in getting a judgment against a JDB under TCPA and FDCPA/RFDCPA, can they discharge it in a bankruptcy?

[willingtocope 1,336]

Yes.

[Coffee_before_tea 268]

Time to pierce the corporate veil, and go after them personally.  Here's an article on the matter.  

 

http://www.nolo.com/legal-encyclopedia/personal-liability-piercing-corporate-veil-33006.html

[WhoCares1000 743]

The only time you can pierce the corporate veil is if you can prove that the officers are negligent and that is very hard to do. They will show video of their training sessions where the trainers tell the new employee to not violate the various debt collection laws and the employee decided to go rouge. Besides, the officers can declare BK too if it comes to that and you are back at point 1 unless you want to spend tons of money fighting the discharge.

[Guest usctrojanalum]

Individual collectors can be held liable under the FDCPA, while they could always file bankruptcy too, (and are more likely than a corporate defendant to file bankruptcy) think it'd be pretty rare for a JDB to file BK unless the damages against them were crippling. 

[willingtocope 1,336]

Looking at the OP's other posts, it appears she's dealing with a mom & pop JDB whose LLC may have expired.  They might be inclined to run away.

[WhoCares1000 743]

If the LLC has expired, then the owners lose the corporate protection offered by the state the LLC was filed in and hence, become sole proprietors and hence take all the risks. Regardless, both the company and the individual owners can file for BK and short of proving in BK court that the debt falls under one of the categories to not be discharged, the OP will not collect.