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Our Attorney acted quickly. He dug into legal research and read cases from across Texas.
At the hearing, we argued that, while the bankruptcy might temporarily ‘stay’ any action
against the Company, it had no legal effect on proceedings against the Owner as an
individual with a personal guarantee. Supported by case law, the Judge agreed and signed
a judgment against the company’s Owner for the full amount of the debt, plus legal costs
and attorneys’ fees.
Our Attorney had doubts that any recovery would come from the Company even before
the Company filed for bankruptcy, but the personal guarantee provided a second chance to
get paid.
Story provided by Connor Smith, an attorney in the Litigation & Bankruptcy Section of
Doré Rothberg McKay. While in law school, Connor captained his team in the National
Bankruptcy Moot Court Competition besting 50 other law schools. He also clerked for our
Firm, and the experience led him to focus on helping trade creditors collect their accounts
before and during bankruptcies.
