If you have a judgment against a corporation that has forfeited its charter in Texas, you may be wondering if you can still sue the corporation. The answer is yes, but there are some important things to keep in mind. First, the process of suing a forfeited corporation is generally more complicated than suing a non-forfeited corporation. Second, even if you are successful in suing the corporation, it may be difficult to collect on the judgment.
What is a forfeited corporation?
When a corporation is forfeited in Texas, it means that the corporate entity has been dissolved and can no longer conduct business. The shareholders of the corporation may be liable for the debts of the corporation, but the corporation itself no longer exists. This can happen if the corporation fails to pay its taxes, or if it commits certain other offenses. If you have a claim against a forfeited corporation, you may still be able to sue the shareholders of the corporation, but you will not be able to sue the corporation itself.
How to sue a forfeited corporation in Texas
If you're a Texas business owner, there's a good chance you've had to deal with the state's strict corporation laws. One of the most frustrating aspects of these laws is that they can result in your corporation being forfeited if you don't follow all the rules.
Fortunately, you can sue a forfeited corporation in Texas and get your business back on track. The process is not always easy, but it is possible to recover your losses and get your corporation reinstated.
If you're thinking about suing a forfeited corporation in Texas, here are a few things you need to know:
1. The first step is to file a notice of contest with the Secretary of State's office. This will let the state know that you intend to fight the forfeiture.
2. You'll need to file a petition with the court, along with a bond, within 30 days of filing the notice of contest.
3. The court will then set a hearing date, at which time you'll need to present your evidence as to why the forfeiture should be reversed.
4. If the court agrees with you, it will order the Secretary of State to reinstate your corporation.
The pros and cons of suing a forfeited corporation
When it comes to suing a forfeited corporation, there are pros and cons to consider. On the one hand, a forfeited corporation may have assets that can be seized in order to satisfy a judgment. On the other hand, a forfeited corporation may have no assets at all, making it difficult to collect on a judgment.
If you're considering suing a forfeited corporation, it's important to weigh the pros and cons carefully. An experienced attorney can help you understand your options and make the best decision for your situation.
What happens if you sue a forfeited corporation in Texas?
If you sue a forfeited corporation in Texas, the court may dismiss your case. This is because a corporation that has been forfeited has no legal existence and therefore cannot be sued.
How to avoid being sued by a forfeited corporation in Texas
When a corporation forfeits its charter in Texas, it loses its legal status and can no longer conduct business. All of its assets revert to the state, and any debts it owed become the responsibility of the shareholders. However, there are still some ways that a shareholder can be held liable for the debts of a forfeited corporation.
If you're a shareholder in a forfeited corporation, there are some steps you can take to protect yourself from being held liable for the corporation's debts. First, make sure that you're not listed as an officer or director on the corporation's paperwork. Second, keep good records of any payments you've made to the corporation and of any assets you may have acquired from the corporation. Finally, if you have any questions about your liability, consult with an attorney.
Yes, you can sue a forfeited corporation in Texas. If you have been harmed by the actions of the corporation, you may be able to seek damages through a civil lawsuit. You will need to consult with an experienced attorney to determine if this is an option for you.