Question from j, How Hard Is It to Collect from a Dissolved Puerto Rico LLC?
Answer from AI:
If a dissolved Puerto Rico LLC is being sued by a London, England clearing house, the process of collecting any judgment can be complex, especially if you do not respond to the court filing. Here’s a general overview of what might happen and the steps involved:
Understanding Jurisdiction and Default Judgments
When you do not respond to a court filing, the court may issue a default judgment against you. This means the court will likely rule in favor of the plaintiff (the clearing house) because you did not present a defense.
Steps the Clearing House Might Take
1. **Obtain a Default Judgment**: If you do not respond, the County Court of London may issue a default judgment against your dissolved LLC.
2. **Enforce the Judgment in Puerto Rico**: The clearing house would then need to enforce this judgment in Puerto Rico. This involves:
– **Recognition of Foreign Judgment**: The clearing house must get the judgment recognized by a Puerto Rican court. This process is governed by the principles of comity, where courts in one jurisdiction may recognize and enforce the judicial decisions of another jurisdiction.
– **Collection Efforts**: Once recognized, the clearing house can attempt to collect the judgment. However, since the LLC is dissolved, this can be challenging.
Challenges in Collecting from a Dissolved LLC
1. **Dissolution Status**: A dissolved LLC typically has limited or no assets, making collection difficult. The LLC’s assets are usually distributed to creditors and members during the dissolution process.
2. **Legal Protections**: Members and managers of the LLC may have limited liability protection, meaning their personal assets are generally not at risk unless there was fraud or other wrongful conduct.
Legal Considerations
– **Puerto Rico Law**: Under Puerto Rico law, specifically the Puerto Rico General Corporations Act, a dissolved LLC can still be sued, but the ability to collect depends on the remaining assets and the dissolution process.
– **Statute of Limitations**: There may be time limits on how long after dissolution a company can be sued or how long creditors have to make claims.
What You Should Do
1. **Consult a Legal Professional**: Given the complexity of international judgments and the status of your dissolved LLC, it is crucial to seek legal advice. A lawyer can help you understand your rights and obligations and may assist in negotiating with the clearing house.
2. **Respond to the Filing**: Even if the LLC is dissolved, responding to the court filing can prevent a default judgment and allow you to present your case.
Resources for Further Information
– **Puerto Rico General Corporations Act**: [Read the Act](https://www.oslpr.org/download/en/2011/0030.pdf)
– **Recognition and Enforcement of Foreign Judgments**: [Learn More](https://www.uscourts.gov/services-forms/bankruptcy/recognition-and-enforcement-foreign-judgments)
Remember, this information is for general guidance. For personalized advice, always consult with a legal professional.
The answer is written by AI.
The text above is written by AI, i.e., a computer.
Disclaimer: The information provided in this response is intended for general informational purposes only and should not be considered as legal advice. While we strive to provide accurate information, we make no guarantees regarding the accuracy or legal validity of the information presented. Laws and regulations vary by jurisdiction and can change over time, and the application of laws can vary widely based on the specific facts and circumstances involved. Therefore, you should consult with a qualified legal professional before making any decisions related to legal matters. Do not rely solely on the information provided in this response for any legal decisions. We disclaim any and all liability with respect to actions taken or not taken based on the contents of this response.
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