If you are a contractor and somebody sued your company and obtained a judgment against it, you have a short period of time to dissociate from the contractor license used by that company. If you fail to timely disassociate within the time allotted by law, the judgment will become a permanent mark in the records of the California Contractors State Licensing Board (CSLB) and against the license used by the company with a judgment against it. Once the judgment becomes a permanent mark against a license, the CSLB will typically suspend all other contractors licenses that you are associate with, even a new license for a totally different company. If you hold an associated license, your contractors license will be suspended.
The Contractors State License Board will then send you a Notice of License Suspension for Associate License advising you that a contractor license that you are presently associated with has been suspended due to an outstanding judgment against a company that was using a totally different license. If you have received a Notice Suspension of your associate license, you should immediately seek the advice of a skillful and experienced San Diego bankruptcy attorney regarding whether it is advisable to file bankruptcy on a judgment that is against the company with a suspended license, or whether a personal bankruptcy filing might be a better option.
In most cases simply filing bankruptcy for the company with a judgment against it is sufficient to reinstate your contractor license. Even if the company with a judgment against it is out of business, the company can still file a bankruptcy. You just need an officer of the company to sign the bankruptcy petition that is filed by the company that is now out of business. Once you file for the company with a judgment against it, the CSLB will undue the license suspension due to associate license and will reinstate your current contractor licenses.
You may also need to file a personal bankruptcy for yourself. In many cases, a personal filing can help you get out of debt and get a fresh start. So in addition to reinstating your contractor license, a personal filing can let you start with a clean slate.
Call Bankruptcy Legal Center to set up a free consultation with an experienced attorney to discuss how a bankruptcy filing can help you reinstate your contractor license today. We know how to deal with the CSLB and we can help you. Call us at 619-501-9711.