If you receive an arrest warrant, don`t panic, it just means someone is accusing you of hurting them. The first question you should ask yourself is: how do I get this document? If you are served by a sheriff or a trial server, or if you have filed the arrest warrant at your door, you must go to court. If you receive it in the mail, or if the person who accuses you of misconduct gives it to you, you can ignore it because that person has not complied with their service requirements under the law. On the date of the trial in question, the judge will first ask, “How was this person served?” and if there is no sworn insurance from the owner or trial server, the matter will not continue. If you do not show up on the return date, the court will give you a default judgment. A default judgment meant that no one seemed to defend against the complaint, and the court a verdict. You have every right to participate, but it is important to understand what factors the court will consider. Often, clients who are in debt want to go to court and explain to the judge that they simply cannot afford to pay. The judge can sympathize with the situation, he or she is not there to determine whether you can pay, but to determine whether the debt is valid or not. The judge at trial date will ask whether the debtor or accused owes the money or denies guilt. If you owe the money, then the court would give a verdict. You have a better chance of being tried if you are sued by a collection company – someone you`ve never heard of, like Asset Acceptance, NCO, CG Services, Cavalry Portfolio – instead of being sued by the company you`ve dealt with, like Ford Motor Credit, Bank of America or Inova.
If you know how to counter their evidence and make them prove that they really have the debt, you have a chance to win. The areas of law, accounting and evaluation are becoming increasingly complex. Given the overlapping approaches in these areas, it is increasingly important for lawyers to understand the accounting, tax and valuation effects of the legal constructs they are developing. With this knowledge, lawyers can deliver the desired results to their clients and minimize unintended consequences and compliance constraints. If you want to download our full eBook, which contains all the blogs in this series, you can do so here. With regard to the fact that venture capital firms also favour assets such as intellectual property or a flat-rate pledge on all assets, a personal guarantee agreement is often not necessary. But this is not a general statement. By looking for lenders, you can find one that requires a personal guarantee for you as a founder and owner.
And it`s important that you think about that risk. Do you want to be personally responsible for the debt your company pays for? I am the bankruptcy lawyer, Robert Weed of Northern Virginia. I shared that information about the debt arrest warrant, because I think you should know your decisions.