Business Bankruptcy Law | Small Business Bankruptcy Laws

I made a huge mistake- Due to being low on business, I took a job at cost. Then the suppliers took 5 months to bill me, and there were several thousand dollars of costs that I forgot to account for. I have already sent the final bill to the client, and due to the fact I didn’t make any money off the deal, I didn’t do due diligence so the deal ended poorly (very unhappy with us), and now they won’t pay the difference since I already told them they had the final bill.

I don’t have the several thousand needed to pay the suppliers in my accounts, and don’t have enough assets to make things work. All I can do is declare bankruptcy right? How do I do that anyway? I looked it up online and all I can find is big business or individuals. this is a small corporation of only a few people.
lol I can’t afford a lawyer- I have no money anymore. No personal money or business money. Lost it all this year- got nothing.

I guess I just need to wait to be taken to court over it?

He owns a very successful business and is not claiming his true income, debts and assets. The lien is actually against the building he operates the business from but is titled to him personally. He also pays all of his personal bills, and an extremely expensive hobby (close to 100,000 annual) through his business but does not list any of this on his chapter 13 paperwork. Will this lien be removed or will it stand through his bankruptcy. Do I have any options? Chapter 13 is for personal only not his business.

I was running LLC co(April 06) with another partner.The partner deposited co.money in his personal a/c.He took money to purchase truck for co. but never purchased.
When confronted that it was a fraud and my intention not to continue with business,he changed the locks(Sep.1 06) of warehouse and disappeared.(He did not even let me remove my personal things like my diary and photo album)I went to police station but they said it is civil matter and they can not help.Later on his lawyer sent me letter informing that his client has changed locks and willing to dissolve the co.
I called him several times but he did not answer.
I approched American arbitration association(as per our operating agreement).He did not deposit full fee (deposited part)and the arbitrator dismissed the case.
I approched the court and filed complaint( civil) claiming my original investment and profit till date of locking and the date was in Jan 08.In the mean time on Dec 5 he filed bankruptcy under chapter 13.
His lawer sent letter saying ‘automatic stay is in effect’. On the claim amount he wrote ‘disputed’.
I feel cheated as the co was in profit as per a/c books maintained by accounting firm.After lock out he started business in his personal name using assets of LLC Co.I do not know what to do as my whole savings are gone.
On 29th Dec.07 I filed a complaint with Sherriff but was informed that they can do nothing as it was a civil matter.
Pl somebody advise me what can I do?
Already it is more than 16 months and I have paid more than $ 7000.00 to American arbitration association and attorneys since he changed locks(sep.1,06)

I was running LLC co(April 06) with another partner.The partner deposited co.money in his personal a/c.He took money to purchase truck for co. but never purchased.
When confronted that it was a fraud and my intention not to continue with business,he changed the locks(Sep.1 06) of warehouse and disappeared.(He did not even let me remove my personal things like my diary and photo album)I went to police station but they said it is civil matter and they can not help.Later on his lawyer sent me letter informing that his client has changed locks and willing to dissolve the co.
I called him several times but he did not answer.
I approched American arbitration association(as per our operating agreement).He did not deposit full fee (deposited part)and the arbitrator dismissed the case.
I approched the court and filed complaint( civil) claiming my original investment and profit till date of locking and the date was in Jan 08.In the mean time on Dec 5 he filed bankruptcy under chapter 13.
His lawer sent letter saying ‘automatic stay is in effect’. On the claim amount he wrote ‘disputed’.
I feel cheated as the co was in profit as per a/c books maintained by accounting firm.After lock out he started business in his personal name using assets of LLC Co.I do not know what to do as my whole savings are gone.
On 29th Dec.07 I filed a complaint with Sherriff but was informed that they can do nothing as it was a civil matter.
Pl somebody advise me what can I do?

My husband (AKA jerk) of 20 yrs is turning this into a huge fight. I don’t want to fight. I am dealing with a pain disorder & am under medical care and I am seriously unable to work. He wants to kick me out with 00 worth of CC debt (ours, but in my name) and claim he’s in debt for 0K. He has assets, like a small 4 seater plane, construction equipment, work vehicles and tons of small things like computers, office equipment, etc. He has a great job but is threatening to quit to "prove" he couldn’t afford to help me financially.

I’ve asked him ONLY for financial help with food & medicine. I’m applying for disability but it takes a couple years and a lawyer, so I can’t rely on that. I’m stuck. I’m seeking legal advice tomorrow (if I can find one to offer free advice since Wyatt Earp refuses to give me more then 0 for groceries.) I have until July 1, he’s selling the house we’re living in now (for 0,000 and they need in by July 1st, however he’s "claiming" that all the money is going to pay off his business debt and that it will still leave him in the hole for 0K.) I don’t want to fight, I don’t want anything really. Is that stupid or what? I know and I will fight if I have too, though.

What I DO need is advice. He claims that he is not financially responsible for me if we’re legally separated. Is that true?
I have made copies of financial records that I found but it only basically proves that he is indeed in debt. Thankfully, my name isn’t on any of it except the 00 CC’s.

He told me that I am responsible for his debt as well (even though its 100% work related and my name is NOT on any of it.) But is that true?
Can he fight me in court and make me responsible for HIS debt?

Can I get him to pay off the 00?
Is he legally responsible to at least provide me something to cover regular expenses and medicines? If so, how will it happen since he’s trying to prove he’s in so much debt and can’t afford to?

I’m willing to go through bankruptcy if I have too, but would rather NOT since I have great credit and it’s just 00 and I KNOW he could pay for it, but he won’t.

He’s not physically abusive but he is mentally, emotionally and verbally abusive, he’s also not mentally stable but I can’t get him any help with that (that’s a whole other story) and I know none of this is easily proven.

We have no children. We’re in Alaska, I have family that I CAN go to in California if I have too, but don’t want to. If I did go there though, would that change things with legalities in a separation or divorce?

So any help or advice or suggestions are needed. I know I said I’m seeking a lawyer tomorrow, but I’m so anxious about it right now since we just came to the conclusion we’ll be separated and that he’s going to be a jerk about it.

Thank you for any help!

I’m filing for Chapter 7 bankruptcy in the state of Minnesota, and to my knowledge they allow us to choose either State or Federal exemptions. I have no assets but a decent amount of debt from a business that went under. I have some cash in the bank and thats really it.

Because I dont have a house my question is how the Federal Wildcard works. I’m looking at the 2004 wildcard (it could be different now) "Up to ,250 of unused homestead exemption amount, for any property" . I don’t have a homestead so basically does this mean I can use up to ,250 for my personal property? . The other section of the wildcard says "5 of any property" so this is why I ask. With the law changes this could all be different since 2004. Please advise?

I was a senior faculty at a well known university and due to my connections was able to place my dept students as internees with a well known health care company. However recently these internees were placed as ‘junior research contractors’ , which means the health care client payed a vendor company and that vendor company paid me ( after keeping a neat profit ) and I paid the internees handsomely with tuition reimbursement and stipend , after keeping a small sum for myself as profit.The profit per intern was not that high but due to more internees I placed, I could make a decent gross profit.
I had to run the internees payroll in advance every 15 days though , I was supposed to be paid every 50 days by this Vendor company.
It was the 1st timer for me in this contracting territory. All looked good initially , until the 1st payment. I could not get any further payments from this vendor.
She gave me personal reasons that – she is undergoing a divorce and her assets are frozen for the moment but all will be well later on.
I reported this to the Company Manager who called a meeting with myself and her. He assured me that his lady , called Kathy ( from the vendor company ) was very dependable and I should be getting my money, later on , no worries. Kathy looked like any other ‘business blond’ wearing full pant suites, tried to charm everyone and even visited these interns and got them expensive gifts. So everyone only had to say good words about her. Later on, when no payments came from Kathy’s company , I reported it again to Bob ( that Manager ) and he said he really could not retain Kathy’s payment.
Only later did I realize this was all a set up. That Bob and Kathy had more than business relationship. I cut short their internships , after receiving nothing but the 1st payment from Kathy and later I sued Kathy’s company, after she ceased all communication with me and would’nt return my calls. Bob too , started appearing evasive and told me not to disturb him.He said he paid 0K to Kathy. I was running a 100K loss with Kathy. She filed chapter ( I don’t know… 7,9,11? ) bankruptcy and gave the judge a 130 page memo explaining her stance.It looks like I was not alone, there were others also in the same boat. But she still lives in a Million palace , by the canyons, in CO . What should I do to recover my money ? Does anyone know an adept lawyer in CO , who could squeeze money out of these fake bankruptcy slimes ?
How should I approach this ..?

In the last year the bank foreclosed on my house, and I sold my small business for ,000. The bank says I still owe the mortgage balance (after deducting the foreclosed value of the home). I paid the ,000 to family members that I had owed money to. So now, since I have now assets, should I still file Ch. 11 bankruptcy?

Is it because state pension funds have some of the stock? It’s already in the low single digits and ultimately these companies will fail, so why prolong the agony?

Is it because the unions are against this, since their lucrative contracts will be avoided once the creditors take over? Those contracts are unsustainable anyway, so why not break them now?

Is it that Congress somehow doesn’t understand that Chapter 11 is not the same as Chapter 7, i.e., that the companies will still make cars and stay in business?

Is it that because of the financial crisis, the car companies wouldn’t be able to find DIP financing? In that case let the govt guaranty the DIP financing, rather than just loan money into a black hole?
Holy Cow, if people don’t buy the product a business produces, then the business should be allowed to fail, so that its assets can be used to produce something that people want to buy.

I need legal advice on how to handle a debt problem. I owe ,000 to 3 USA credit cards each, so a total of ,000. I am broke, but according to all the lawyers that I have consulted (all of them belong to the California American Board of Certification, the national certification board for bankruptcy, or the ones rated on the Best bureau Business,) tell me that I can file for bankruptcy, but the judge will not allow the debts to be discharged (Is a long story and all the lawyers ask me why and once I explained them, they agree that is not advisable).
I have lived a hell suffering because I think is not ethical to avoid paying, but I am broke, my plan was not to do this, they offered me credit cards with balance transfer and I used them as a way to borrow money while I was solving my problems here, but things did not worked the way I planned and suddenly I cannot obtain more balance transfers and the debt is there but I am broke.
So, I am not looking for a lawyer to file bankruptcy, I am looking for a lawyer that answers my questions that I will have through the collecting and suing process.
I am Mexican, I have lived in Mexico the last 7 seven years of my life. I do not have any assets in the US nor in Mexico or anywhere, I do not have any assets at all.

The same lawyers that I have contacted, I have asked them for a legal consultation, but, they do not offer that, some of them have suggested me to look for a lawyer with practice in the debt collect law. So, my first question is where to look for a reliable lawyer. The questions that I have right now for this lawyer are below, just in case you want to give your opinion if have had any experience on this.

What happens if I answer the call and tell them that I will not pay them?

If I tell them that I do not have any asset in the USA?

And I am not living in the USA?

And I am broke?

I am not American (this may cause that the bank send a notice to migration)?

They may find out that I have some relation with that address in California is that a problem for the people that live there?

Are they ever going to go the California address?

They may find out my address in Mexico, is that a problem?

If in the future I want to go to the USA, Will migration sends me to jail or does not allow me to be there?

How long does it take from the initial of collecting until the release of charges from being sued?

What happen if they sue me?

Is it legal for a corporation that defaulted the IRS to file bankrupcy to get rid of IRS DEBT?
this is a business that didn’t pay the IRS its employees taxes for several months and want to file bankrupcy and create another 2 Companies LLC(limited liability)keep the assets and continue to operate..is this legal?the company doesn’t have any $ other than equipment ,vehicles to pay the IRS.What happens if the IRS gets to find out about this plans of bankrupcy and the 2 new LLC companies before they happen? could they stop the bankrupcy and the business gets more in trouble for trying to avoid payment?

They plan on going under chapter 11 and 7, to keep their assets.

My mother has 2 houses going into foreclosure worth close to a million dollars, credit card debts, SBA loans, home equity loans, e.t.c. I have a few questions. One, will they EVER come after me(her son), or my father for her debt. Say I drive a BMW and live in a mansion with thousands in my bank account, can they come after it because of my mom? How bout my dad? Also, she’s thinking of filing chapter 7 but none of the lawyers want to touch her case. They’re excuses are: "The amount is too large", "too much work". Most importantly though, her SBA loan was done through a "broker" of sorts, a small business loan taken out from a business that doesn’t exist. The broker used some loopholes to do this, I think this is why lawyers won’t touch us. Please help me sleep in peace at night, will the creditors, banks, come after me or my dad’s assets/money? Also, how do I find a lawyer who handles large cases like this? The total amount for filing should be 1million+

Thanks so much ya’ll.

Hello,
we got into a bad business a couple years ago and have a lot of debt and lost the business. we haven’t been paying our credit card bills since January. We have been getting letters and nonstop phone calls for a few months now. We have a bankruptcy lawyer and are going to file for personal bankruptcy because the business debt is personally guaranteed. However, we can’t file just yet (not until September for personal reasons). We are wondering how long does it take for the creditors to come after us and claim our assets. is that possible? what are our options other than filing for bankruptcy right now. We are also losing our house and we are moving into a rental in July.

Here is the deal, My wife and I both owe k in credit card debts combined. We have stopped making the payments back in December of 08. We just couldn’t afford to make the payments anymore. The reason the amount of the debt is so high is because we bought a house back in 2006 and our realtor at the time was representing both us and the seller and we got the worst part of the deal. Anyways we had to keep borrowing money from the credit cards to pay the mortgage payments on that house. We finally couldn’t afford to make the mortgage payments on that house so we did a short sale in 2008. Now again we have stopped making the credit card payments since December of 2008 and we simply do not have any money. Both my wife and I are self employed and we have a vending business. However we don’t make a lot of money with this business. Anyways the credit card companies have been calling us day and night and the collections have done the same thing and we don’t pick up on any of them. So the other day a process server came to our door and handed us a letter telling us that we had to appear in court. Obviously one of the credit cards filed a lawsuit against us for the amount of money owed and are seeking a judgement against us. That letter was for my wife’s credit card. My turn is coming pretty soon. So we are not gonna go to the court obviously. We don’t have money to pay our credit cards at all. The house we live in now is in both me and my wife’s name but it has gone down in value. We bought it in 2007 for 5k and now it is only worth 0k. All the furniture and stuff we have in the house has already been paid for. We are leasing the car from Honda. So we don’t really have any assets in our name. All we have is the vending business. With that said, since we are not gonna pay a dime to the credit cards since we can’t afford it and assuming that they will get a judgement against first my wife and eventually me, what should we do here. If they do get a judgement against my wife, what can they take away? Should we file for bankruptcy? We can’t afford an attorney. What are we supposed to do to wipe the slate clean and not be bothered by these credit cards anymore. At time point we don’t care about our credit. Please help me out.

My ex general partners want to close the business and exit the lease early. I am still on the lease with them. I have tried to get off of the lease, but the landlord won’t allow it because my partners have no assets, therefore they are a greater risk. I listed all of my assets on the lease agreement which us 3 partners personally signed. My main question is, can I lose my 2 condos over this. If yes, how? What happens? Can I claim bankruptcy? If I do, will I lose my condos, or will I be able to keep them. Will I need to hire a lawyer? How will I pay my lawyer, with what money?
The business is not making any money. The partners do not have money for next month’s rent…

I’ve been caught up in a confusing and possibly illegal situation. Earlier this week a friend of mine asked me to deposit her business check into my business account, and cash it if for her. Which i did, but when i was returning the cash to her she asked me if i can do it again with another check. i asked her why she’s doing this and she replied she was going to file bankruptcy and this is what her lawyer told her to do.
SO BASICALLY…she was writing out checks from her business credit lines and asking me and a couple of other people to deposit into our accounts and cash it for her. While she was going to file for bankruptcy.
***isnt she trying to hide her assets?
now that i’ve figured out "my friend" has got me involved in her fraudulent transfers/deposits. i still have some of her money in my account. what can i do with it, how can i get it out, with out giving her cash and helping her, with hiding her assets

Hello,
we got into a bad business a couple years ago and have a lot of debt and lost the business. we haven’t been paying our credit card bills since January. We have been getting letters and nonstop phone calls for a few months now. We have a bankruptcy lawyer and are going to file for personal bankruptcy because the business debt is personally guaranteed. However, we can’t file just yet (not until September for personal reasons). We are wondering how long does it take for the creditors to come after us and claim our assets. is that possible? what are our options other than filing for bankruptcy right now. We are also losing our house and we are moving into a rental in July.

(Advice for a close friend)
No major Assets.
Self employed – Would this effect his Corporation?
If he goes chapter 11 – (he can qualify) he doesn’t owe anything
but would have to wait 10 years before he can earn credit.

My thought. Wait it out. If his business does really well. He can pay off the debt at a reduced rate which would look alot better.
Or wait 3 years less… Because I think that goes off in 7 years right?

I have recently lost my job after being in the telecommunications industry for ten years. I have had no luck finding a new 9-5 job with a regular salary. I have been forced to take a job full time at a restaurant.

I have over ,000 in credit card debt most with APR’s in the high 20’s. I have done my best over the last 6 months to keep up with my minimum payments but am finding it impossible recently to balance my debt along with my living expenses. By living expense, I do mean the bare minimums. Rent,utilities, gas, food etc.. I have not wasted funds on entertainment or purchases other than does required for work.

I had an hour long conversation today with a debt consolidation company. It is has been in business since 1965 and is non-profit. I actually used their services in the past to consolidate debt that I managed to pay off about 8 years ago. They analyzed all of my assets, income, debt and overall financial situation. They determined that I was running at a 65% deficit between what I am brining in and what I owe. They recommended that, although it may sound harsh, my best option was to file for bankruptcy. They determined that I would not be able to keep up with any type of repayment schedule that they would negotiate with the banks and that a fresh start may be my best option.

I have avoided the thought of filing for bankruptcy in the past for several reasons. But now that my income is at an all time low and my job prospects do not seem to be sorting themselves out in the near future, I do not now what other options I have available to me. Needless to say, the stress of the whole situation has been making life extremely unpleasant.

I am single, have no kids, and will not be purchasing a house in the near future. The only asset I own, is an 8 year old car.

I have five questions:

1) Other than having a bankruptcy ruling on my file for the next ten years and not being able to secure credit, what are the other disadvantages of filing for bankruptcy?

2) I do not have disposable income. I am making enough to pay for essentials. Would my chances of having the entire debt excused be good? Or would I still be responsible for paying a percentage?

3) I know from my corporate experience that my credit file would be reviewed during the job applications process. I am considering a career with the Federal Government. How would a bankruptcy ruling be looked upon by the government during the job application process?

4) How much with a reputable bankruptcy lawyer cost me?

5) I have also read that another option is to do nothing and ignore my creditors. The following excerpt below is from http://bankruptcy.findlaw.com/ . Is this plausible?

Do Nothing
Surprisingly, the best approach for some people deeply in debt is to take no action at all. If you’re living simply, with little income and property, and look forward to a similar life in the future, you may be what’s known as "judgment proof." This means that anyone who sues you and obtains a court judgment won’t be able to collect from you simply because you don’t have anything they can legally take. (As a famous song of the 1970s said, "freedom’s just another word for nothing left to lose.")

Except in unusual situations (being a tax protester or willfully failing to pay child support) you can’t be thrown in jail for not paying your debts. Nor can a creditor take away such essentials as basic clothing, ordinary household furnishings, personal effects, food, or Social Security, unemployment, or public assistance benefits.

So, if you don’t anticipate having a steady income or property a creditor could grab, bankruptcy is probably not necessary. Your creditors probably won’t sue you, because it’s unlikely they could collect the judgment. Instead, they’ll simply write off your debt and treat it as a deductible business loss for income tax purposes. In several years, the debt will become legally uncollectible. And in seven years, the debt will come off your credit record.

I am planning on contacting a bankruptcy lawyer for further advice but wanted to get an idea as to what I am dealing with before I further the process.

I appreciate any feedback the Yahoo community is able to provide!

Thank you in advance!!

My sister in law is thinking of declaring bankruptcy. I’m concerned about this because I hold two rental properties with her. We are holding the homes in an LLC. So I think were okay but just wanted to double check. Is there anyway that the creditors could come after the business’s assets?