Business Bankruptcy Law | Small Business Bankruptcy Laws

What happens to the shares of a public company that declares Chapter 11 bankruptcy protection and comes back into business at a later date? For example, General Motors declared bankruptcy in June 2009 and after asset sales it came back into business in July 2010 and got listed on NYSE in November 2010. I believe the ticker symbol “GM” didn’t change from bankruptcy. So the old shares are valid or they are worthless? I know that the value of shares of a company declaring bankruptcy is ZERO unless there’s any money left after paying all the creditors through the bankruptcy court.

But in case of a company that comes back after re-org or restructuring through bankruptcy, what is the value of “old” shares? For example, say Kodak files for bankruptcy. Currently, its total equity is -1.7B. Say, it is able to sell some of its patents for 2B and pays off all the debt and decides to come back into business as it has printer business and other patents. What would then be the worth of the current shares of EK? I am not much familiar with law terminology so anything in simple terms is much appreciated. Useful links for further reading would be great as well…

I have always been into businesses. Most of them worked and made me money and one business failed and was bankrupt. But overall i made good money. i have a friend of mine in Qatar suggesting that we open a construction business there (i have experience in that). Of course i want to do everything possible to make good money. but what scares me is that there is always a small probability that the business goes bankrupt even if i have experience. I heard that in qatar and the gulf in general if you’re business goes bankrupt you are still liable and you might even go to jail if you do not pay even though you are bankrupt. The idea scares me even though i am determined to succeed but we never know. anyone knows about bankruptcy laws in qatar or gulf in general

My parents are divorced and I live between my mom’s house and my dad’s house. However, the address on my driver’s license is my mom’s address. Once I arrive to Montréal however, I will be exchanging my license for a Québec license which will have my new Québec address on it (one of the apartments I’ve been looking at). I am wondering which of my parent’s income to put in order to receive the most money from OSAP. My mom does not work, however she is disabled under the Canada Pension Plan so she receives a substantial amount from the Disability Benefit. I will also be receiving some of this money (Child’s Benefit, 214$ per month) as a child aged under 18-25 of a disabled parent attending school. On the Income Tax Return, my mom makes much more money than my dad does. My dad owns a small business, a cigar shop in which he is the only employee. Business is not good, he has a considerable amount of debt from credit cards and currently owns no more credit cards. He didn’t file for bankruptcy but almost did. He currently lives on the upper level of his store, so he technically doesn’t have a house. When I go to live with him, I stay in that upper level of the store. Needless to say, his yearly income on the tax return is much less than my mother’s. In your opinion, which of my parents should I put for the income part of the application?

The answer for me is to put my dad as he makes less money, but the problem is that the address on my license is my mother’s. However, I’ll be changing my license for a Québec one in about 7-10 days and that one will have a completely different Québec license. Please advise me with what to do and which parent to put, I would really appreciate it. Thank you so much!
To "It’s me":
Yes, they live in different households. However, would they cause me any problems if I put my dad’s income on the application but the address on my driver’s license is my mom’s? That would technically mean that I lied about living with my dad wouldn’t it? I actually live between both (1 week here, 1 week there) but the address on all my official documents is my mom’s. The license will be exchanged very shortly to a Quebec license with a new Quebec address on it but I’m just wondering in case…Thanks for your help.
To "Miss Priss":
My mom and dad both live in Ontario. I have lived here my life. I am only moving to Quebec for university in September.

for instance there are any number of individuals such as CEOs, actors, athle;tes and the like who make several millions of dollars a year, even as the government goes bankrupt. In most cases these individuals have signed contracts that entitle them to whatever money they receive, although this is subject to change under certain circumstances. At any rate, it would seem to me that someone who is making million or more a year could stand to have at least a mere million taken from their annual salary, and would likely not even feel the difference from this reduction. Moreover, a reduction of million from the salary of 1,000 such people would alone generate billion over the course of a year, which would take on a whole new meaning when multiplied several times. With that said, has no one considered the idea of garnering additional income from cuts such as the aforemetioned, with or without the addition of cuts from wasteful spending as it relates to entitlement programs and/or other programs? I just think that the salary cuts I have mentioned would have a much better chance of improving the economy with less of an impact on the American people in general.

As far as raising taxes, I am not sure if this is being considered by Obama as an alternate way of increasing revenue in light of the government bankruptcy, but the fact is that this will do no such thing, in fact it will more likely make things worse than they are currently. Small businesses for instance will lay people off or hire less due to having to pay more in taxes. Raising taxes will also likely cause inflation due to monietary manipulation in the event that things continue on this path.

Hello a while ago I signed up for a taekwondo gym. I paid ahead of time. Then one day an employee there tells me that the company is closing. I was unhappy that the tkd place closed down, but I am also unhappy I had already paid 400$ to them in advance. It was a small business then one day they decided the price to keep running the place was more expensive. I guess it went out of business, but the owners did not file bankruptcy. I was wondering am I legally entitled to my money back since the tkd place closed? Money is tight for me and 400$ is a lot for me. Thank you for you help in advance.

We bought a house by land contract 2 years ago. We have never missed a payment and the mortgage is, as of now, paid up to date. The guy we purchased from (the guy who still holds a mortgage on the property) was a small business owner and his business went under. Now, he is filing Chapter 13 bankruptcy because of his business losses, but this only allows him to protect the house he personally lives in, despite the fact the mortgage on this property is good. His lawyer is telling us to just keep making the mortgage payments (directly to the mortgage company rather than thru him) and well be good because it’s not in default. The mortgage is thru GMAC, who we hear are not fun to work with. Are we going lose the house? Should we stop making payments? Scared sh*tless right now, we have three children, have invested a lot of money into the house on renovations (roughly K), and we recieved the K Home Buyers Tax Credit when we signed the contract. Feel like we’re in deep. HELP!!!

My mom is thinking about filing for bankruptcy since she’s up to her eyeballs in credit card debt, not to mention a debt that my dad incurred that he now owes money to the IRS and money on a judgment against them for a small business that failed a couple years ago. I don’t know all the details, but that’s the gist of it. So her question is whether or not the bankruptcy will affect what she owes on both the judgment and to the IRS? I guess getting rid of her credit cards will allow her to pay the judgment and IRS off quicker if they aren’t affected by bankruptcy, but she was just wondering because she is thinking about trying to file for bankruptcy on her own because she obviously can’t afford a lawyer.

I have no one to talk to about my situation, not even my best friends and family. This is a very private decision.

However, I need to know if I am thinking clearly and would so appreciate your help.

When the economy collapsed, so did our business. One year later and we are still living off of savings, depleting our retirement accounts just to stay alive. While I certainly realize that we were at least lucky enough to have this to fall back on, we are in our mid 50’s and this money is what we planned to retire on. Couple that with ,000 in credit card debt that has been incurred to pay our vendors when the business went down, by trying to do the right thing and not filing for bankruptcy, and this has taken a tremendous toll.

We have a differing opinion about how to move forward. I want to sell our home, in which we have significant equity, and move into a smaller, more modest home. The problem for my husband is that this is our dream home, a 3000 sq ft home we built 5 years ago and planned to live the rest of our lives in. I hope I don’t sound too obnoxious when I say it is a very beautiful home.

Of course we won’t get out of the home what we have into it, cash wise. We will be taking a pretty big loss because property values have dropped. I don’t care. While I WANT to live in this home, I don’t NEED to live in this home. My husband is not budging, and is content to spend what we have saved until the business can get going again. When………I have no clue. It’s not looking good.

I am so afraid to lose everything that we have worked so hard for these past 20 years. And if we continue on this path, we will.

I want to sell the house, restock the 401K to where it was, pay off all our credit card debt and purchase a more modest home.

He wants to stay in the house, use our saving to live with hopes that the business will come back.

I feel so desperate that I am thinking of filing for divorce so that I can at least protect my half of what’s left, forcing the sale of the home. I NEED that security. I can not live, hoping that things will turn around while watching every last cent of our retirement go to pay interest payments.

We have been to counseling for weeks now and he is still not giving. We have one HS child left at home. This would devastate our family, but I need that security.

Am I being unreasonable?

Thank you.
He is the one that wants to keep the "material" thing (the home), not me.

I want the security.

I am not trying to "recoup" cash. I want to take the cash to pay the bills we have racked up, buy a smaller home (smaller home, lower bills) and go from there.
I am not trying to "recoup" cash. I want to take the cash to pay the bills we have racked up, buy a smaller home (smaller home, lower bills) and go from there.
Mikey, We have a financial adviser and he is with me.

Now I have talked to many people about this topic and a lot of them say (respected business people) that wal-mart is like K-mart and Woolworth and they will die eventually from under selling the suppliers and a bunch of other stuff. I am about 50 50 here however what they are trying to do as it is become apparent to me is to CRUSH and KILL AND SMASH you if your in business in the retail industry. That’s at least what the deal was until a few years ago now they want to do it to more industries. My cousin wants to become a doctor and he told me that they are trying to open clinics now in some of them (medical industry) so here they go with another industry trying to SMASH you there eventually to go see the doc you might have to go to wal-mart. What’s worse than this? They tried to take over the banking industry too, I was reading that they were trying to buy out banks and I think it was some large bank but thankfully the government passed a law that said that they couldn’t do that but knowing wal-mart they will keep twisting arms until they get what they want. Speaking of which they twist the arms of public officals to get the massive amount of land they need for their stores I mean think about it; do you think I could buy a business that
large even if I had the money? NOPE: environmentalist would be on me in a flash but wal-mart has a way of manipulating people. Also many suppliers like valasic pickles have had to declare bankruptcy due to their limitless demand from them to get lower prices lol. So there we have it are they bound to take over one industry after another? CRUSH KILL DEMOLISH SMASH YOU!! That’s their goal if you want to take on the responsibility of one of the greatest things
in this country being an entrepreneur. So just don’t start your own business or anything they already have food stores in some of these wal-marts so you might not even be able to start something in the restaurant and food industry. Anyway opinions??

Peace

My parents declared Chapter 13 bankruptcy. They had a business in land development and thanks to the housing bubble it collapsed. My dad unfortunately personally gauranteed some of the corporate paperwork.

Now the problem is they are starting to make more money, but the settlement keeps taking the money. Is there any way to try to make more money? Or are the doomed to their current lifestyle for the next 5 years? Any thoughts? Perhaps a bank in the Caymans?

I thought I was paying my tax person not to make mistakes. So now I have to pay for her mistakes?

Is there any way I can ask her to pay my back taxes? Or ask for the money back that I paid her to do my taxes?

I am a small business owner and I may have to file for bankruptcy because of this mistake.
What do you mean by penalties? Does the government charge interest or late penalties on back taxes?
I didn’t ask if the tax preparer was obligated, I asked if I could ask for them to pay. When I do ask, what should I say to make them feel more obligated to pay?

Now I have talked to many people about this topic and a lot of them say (respected business people) that wal-mart is like K-mart and Woolworth and they will die eventually from under selling the suppliers and a bunch of other stuff. I am about 50 50 here however what they are trying to do as it is become apparent to me is to CRUSH and KILL AND SMASH you if your in business in the retail industry. That’s at least what the deal was until a few years ago now they want to do it to more industries. My cousin wants to become a doctor and he told me that they are trying to open clinics now in some of them (medical industry) so here they go with another industry trying to SMASH you there eventually to go see the doc you might have to go to wal-mart. What’s worse than this? They tried to take over the banking industry too, I was reading that they were trying to buy out banks and I think it was some large bank but thankfully the government passed a law that said that they couldn’t do that but knowing wal-mart they will keep twisting arms until they get what they want. Speaking of which they twist the arms of public officals to get the massive amount of land they need for their stores I mean think about it; do you think I could buy a business that
large even if I had the money? NOPE: environmentalist would be on me in a flash but wal-mart has a way of manipulating people. Also many suppliers like valasic pickles have had to declare bankruptcy due to their limitless demand from them to get lower prices lol. So there we have it are they bound to take over one industry after another? CRUSH KILL DEMOLISH SMASH YOU!! That’s their goal if you want to take on the responsibility of one of the greatest things
in this country being an entrepreneur. So just don’t start your own business or anything they already have food stores in some of these wal-marts so you might not even be able to start something in the restaurant and food industry. Anyway opinions??

Peace

Now I have talked to many people about this topic and a lot of them say (respected business people) that wal-mart is like K-mart and Woolworth and they will die eventually from under selling the suppliers and a bunch of other stuff. I am about 50 50 here however what they are trying to do as it is become apparent to me is to CRUSH and KILL AND SMASH you if your in business in the retail industry. That’s at least what the deal was until a few years ago now they want to do it to more industries. My cousin wants to become a doctor and he told me that they are trying to open clinics now in some of them (medical industry) so here they go with another industry trying to SMASH you there eventually to go see the doc you might have to go to wal-mart. What’s worse than this? They tried to take over the banking industry too, I was reading that they were trying to buy out banks and I think it was some large bank but thankfully the government passed a law that said that they couldn’t do that but knowing wal-mart they will keep twisting arms until they get what they want. Speaking of which they twist the arms of public officals to get the massive amount of land they need for their stores I mean think about it; do you think I could buy a business that
large even if I had the money? NOPE: environmentalist would be on me in a flash but wal-mart has a way of manipulating people. Also many suppliers like valasic pickles have had to declare bankruptcy due to their limitless demand from them to get lower prices lol. So there we have it are they bound to take over one industry after another? CRUSH KILL DEMOLISH SMASH YOU!! That’s their goal if you want to take on the responsibility of one of the greatest things
in this country being an entrepreneur. So just don’t start your own business or anything they already have food stores in some of these wal-marts so you might not even be able to start something in the restaurant and food industry. Anyway opinions??

Peace

married almost 20 yrs, she disappeared with daughter (14) for 2 weeks with no contact left son (18) on farm. the husband offered her large cash settlement to leave farm
running she refused. farm sold his mom borrowed them the cash for the farm (basically like a bank) ex wanted the money but not to pay off the debts. her theroy is she should get money and he gets the debt.his mom received her money back and now his ex claims she wants spousal and she is going to claim bankruptcy on her share of the debts unless he takes all the debt.but as of now
he no longer has the farm or that type of cash flow to cover those debts on his own. but as stated they were business parteners she sold many items from the house and she kept the money.she walked away from the business and family (only taking the daughter) and has worked various jobs since she has left and now is claiming she is unable to work and he needs to pay for her living?this man has lost everything his dream his life his farm his daughter for 2 yrs his son, his ex would not let him have contact with his daughter.she is looking for someone to take care of her financially .so he has nothing now and is still 100,000.00 in debt and she wants him to take it all and pay her spousal but they were parnters half the debt should be hers and there should not be spousal. he pays for his daughter but why should he pay spousal when they were business partners and she wasn’t financailly dependent on him, as she stated she worked the farm.the 1st judge said he wanted farm to still run be smart (to ex wife) and make a deal(to ex husband).. the husband tried..should she be entitled to spousal support, she refused the offer, forced the sale of farm, has racked the debts up with interest due to not agreeing to releasing the money to pay the debts off, but they were business partners who jointly worked on the farm and jointly earned from the farm and jointly made the debts and loans? they are still going through court. her lawyer has given her terrible advice she should of taken the cash settlement and not forced the sale of the farm.. as her life would of still been easy.as of now the ex husband works for another farmer, and she works on an assembly line. in your opinion as i know there are courts for these issues.. in your opinoin would you think she should be entitled to spousal support?

….If they never signed a contract or any kind of written agreement?

My grandfather loaned his sister’s grandson, Zach,(my second cousin) a loan of twenty thousand dollars. He claimed he was going to better his life by taking flying lessons to become a pilot. He convinced my Papaw that this was basically a "education" loan. My grandfather, being the generous and giving person he is lent him the money and set up a payment plan with Zach to get the money back over time. This was in April of 2009. My Papaw was diagnosed with cancer in June 2009 and passed away in November 2009. Zach made payments until November 2009, when my Papaw passed away.

Before my Papaw passed, he told my aunt (which is over his estate) to make sure that Zach keeps making payments. Now Zach has become extremely disrespectful to our immediate family. He doesnt make any payments, he doesnt return calls or texts and he gloats and posts pictures of a new small business he has opened on Facebook. My aunt even met with him and lowered his payment so he would be able to pay.

So what I am wanting to know is, without having any written agreement between Zach and my grandfather, can we take him to court to get the money back?

Also another detail is today we ran into him at the bank and he said "I just filed bankruptcy, my lawyer should be in contact with you"

I gave my Lawyer a deposit for my personal and business bankruptcy its going on 16 months he got me a case number for my personal and then it was dismissed do to lack of filing income statements and a few other things. Is there anything I can do to get all my money back from him.

They all seem to be so busy and even the receptionist has her own voice mail. This is frustrating. I’m ready to do business and pay the f-ing money and I don’t want to drive all the way there and find out they can’t help or I need to come back and do another thing. UGHHHH!

I am about to file Chapter 13 bankruptcy for my personal credit and just found out the my company owed taxes and the government put a hold on my personal chase account.
My business owes other money and now I am scared that other creditors will go after me personally. Can they ?
My business is a S corp.
I thought the reason of being incorporated is to protect your personal liabilities.
Do I need to include the other creditors on my filling? please help

I have always had an interest in going to law school. I will be completing my undergraduate studies in about five months. I am just curious as to whether there are any scholarships and grants available to law students. My parents do not have money to pay for law school, nor do I, especially considering the fact that law students are permitted to work no more than 20 hours per week, so I have heard. I am not considering any top-tier (expensive) law school programs, merely law schools such as DePaul University or Loyola University, both located in Chicago, IL, or any other inexpensive law schools. Any suggestions would be helpful.

Just for some background info:
I am getting my bachelor’s in business administration with a concentration in management. I am currently working for a bankruptcy and foreclosure law firm as a legal assistant. I have plans to attend graduate school for a master’s in accountancy degree. However, as I have stated, I have always had an interest in attending law school, just don’t think I can afford it. Thus, I picked accounting which I do love dearly, but not as much as law!

i have a business bank account and the bank took all of the money out of the account because i owe them money from a previous business account. limited liability means that my business is separate from me personally by the Georgia law.
could the bank do that ?
also i am in bankruptcy me not my company i am protected by the bankruptcy law and my business is a limited liability company that is protected by the Georgia law so could i file a suit against them. I have made no transactions on this new account it is just open 3days ago and the next day the bank took my deposit for a old dept that was a business account that is no longer in business.