Business Bankruptcy Law | Small Business Bankruptcy Laws

Want 10 Bucks? Good at Accounting?
Comprehensive Partnership Transactions Please Help Me I’m Stuck..:)? Promise to send Best answer 10 dollars.
***This problem from Principles of Accounting 11th edition******
The following events pertain to a partnership formed by Mark raymond and stan bryden to operate
a floor cleaning company:
2011
Feb 14 the partnership was formed. Raymond transfered to the partnership ,000 cash, land worth ,000, a building worth 0,000, and a mortgage on the building of 0,000. Bryden transfered to the partnership ,000 cash and equipment worth 0,000.

Dec.31 During 2011, the partnership earned income of just ,000. The partnership agreement specifies that income and losses are to be divided by paying salaries of ,000 to raymond and ,000 to Bryden, allowing 8 percent interest on begining capital investments, and dividing any remainder equally.
2012
Jan. 1 To improve the prospects of the company, the partners decided to take in a new partner, Chuck Menzer, who had experience in the floor cleaning business. Menzer invested 6,000 for a 25% interest in the business. A bonus was transfered in equal amounts from the original partners’ Capital accounts to Menzer’s capital account.

Dec. 31 During 2012, the company earned income of ,200. The new partnership agreement specified that income and losses would be divided by paying salaries of ,000 to Bryden and ,000 to Menzer (no salary to raymond) allowing 8% interest on begining capital balances after Menzer’s admission, and dividing the remainder equally.

2013
Jan. 1 Because it appeared the business could not support the three partners, the partners decided to liquidate the partnership. The asset and liability accounts of the partnership were as follows: Cash, 7,200; Acct. rec. (net), ,000; Land, ,000; Building (net), 8,000; equipment (net), 6,000; Accounts Payable, ,000; and mortgage payable, 4,000. The equipment was sold for 0,000. The accounts payable were paid. The loss was distributed equally to the partners’ Capital accounts. A statement of liquidation was prepared, and the remaining assets and liabilities were distributed. Raymond agreed to accept cash plus the land and building at book value and the mortgage payable as payment for his share. Bryden accepted cash and accounts receivable for his share. Menzer was paid in cash.

REQUIRED
Prepare entries in journal form to record all of the facts above, Support your computations with schedules, and prepare a statement of liquidation in connectioin with the January 1, 2013, entries.
1 day ago – 3 days left to answer.
Additional Details
**********Could email the working papers if would make easier, just need email*******

Chapter #17 Problem 8

I’ll leave out the details but I am almost certainly going to file. Already spoken to 3 lawyers and picked one. Would like to hear from folks whov’e been through this in the past. I’m curious what "life is like" after it’s all said and done. Do you have regrets? I never in a million years thought I would be ever filing bankruptcy but I started a side business 6 years ago and it’s failed in this economy. And I’ve spent every penny I had saved up.

I’ve been told after it’s discharged, you will be able to get a loan to say, buy a car within 6 months? And a mortgage within a year? (I need to re-fil my home on the lower rates).

Thanks in advance.

I own a beauty salon for about 6 months and every month i have to put out my own pocket money to pay the business bills. I’m about to have more trouble on the way paying my mortgage…My landlord said I can’t advertise with car’s flyer, no banner, no street sign, building is in the back of the plaza behind a tree and my lease is 5 years…I’ve tried negotiate with the landlord but failed do anything. I’ve made a very bad choice choosing this location. Is there anything i can do to break this lease? I want to avoid filing bankruptcy, i want to see if i can find a loophole to cancel this lease, and where can i find the right people to help me? Real Estate lawyer or Contract Lawyer? and how do i find out about their reputation? PLEASE HELP!

I loaned a "friend" (of 14 years) 00 appx 3 years ago. She was going through a difficult time. She was self employed as a staffer for the car business and after the economy bottomed out she was on the verge of losing her home to foreclosure. She also was about to have her phone shut off and was worried she wouldn’t be able to get back on her feet if she couldn’t conduct her business. Her boyfriend also self employed. He bought things from estate sales and resold them on EBay. Their mortgage was behind by 00, her phone bill was almost 0 and the EBay acct was suspended owing 8.00. At the time my family was doing okay as I had just received some money from an insurance settlement and I had it to loan. I had western unioned her 00 in cash, put her phone bill on my credit card and sent them money through PayPal to pay off the EBay acct.

It was always understood it was a loan but because they were going through such a rough time, I didn’t want to pressure her with a repayment date and just said, "pay me back as soon as you can or if I ever need it back". She has made mention over the last 3 years that she hadn’t forgotten that she will pay me back soon and had once made a payment of 0 dropping her debt to me down to 50.

6 months ago our financial situation had changed. My husbands hours had started to be cut back. At first we juggled and managed but soon after it got worse and we also got hit with a few unexpected bills. I had approached my "friend" and asked if she could pay me back the money she owed me. If she couldn’t handle the whole amount, I would accept payment installments but we really needed that money back. She said she would see what she could do and then shortly after picked a fight with me over something trivial. I saw that ploy for what it was and insisted that she pay me back all of it or else…

She had just filed for chapter 13 BK and stated that she couldn’t be behind on any debt or have a new debt added or it would unwind the BK. I didn’t want to cause any trouble for her but I needed my money back and told her as much. She had promised she would have the money to me by the end of May. The deadline came and went and not a word from her. My husband had finally gotten his hours back but not soon enough and because we had no other money coming in, all we could do was hope she would be honorable and pay, so we held off our creditors as long as we could. As a result our truck, that we had paid diligently for over 3.5 yrs had gotten repossessed. We are going to be able to get it back but we’re going to have to let go of a few other bills to do so and its going to causes us much trouble. The money she owes me would put us right back on track.

I’m starting to see that unless I get "official" with her I’m not going to see my money back any time soon. Recently, on one of the rare occasions when we had a cordial conversation, she had let it slip that she’s had steady employment for the last year and through some sort of loophole, she’s been able to stay in her condo for the last 36 months and her car (a benz) for the last 18 months without having to pay anything and that her boyfriend just bought a new car. Now I’m furious! While my truck sits in a lot as we try to come up with 00 by Friday to get our truck back and try to figure out how we’re going to feed the family and keep the lights on, they’re doing just fine! In what universe does that seem fair? So now I’m ready to role up my sleeves and get serious. You just don’t do that to people, especially after a decade and a half of "friendship". Its all so pathetic and cliche!

Problem is, I live in Colorado and she in California. I looked into it and I can’t sue her in small claims from here. I’d either have to hire a lawyer to handle the suit or file myself but I’d have to do it from there. Obviously can’t afford that right now. I’ve looked into hiring a collection agency but the few that I found that will take on a personal, non-business loan want between 30-50% upfront in fees (and some after). I’ve kept all the proof (WU receipt, credit card bill, paypal transaction showing all the money I sent her, along with the emails where she acknowledges her debt to me and that she would be paying me back what she owed me, in full, by May, 2010).

I want to know if I can hire a lawyer (preferably in SoCal) to scare her into paying me back by sending her a letter on my behalf stating my intent to pursue all my legal options to get the money owed back within 30 days, without having to pay a retainer and if so how much would something like that cost?

And if anyone can think of anything else that I can do to get the money owed to me back, that would be greatly appreciated. Maybe a SoCal atty that would be willing to handle this probono?

Thank
Thank you all in advance for any and all advice. Sorry it was so long but I wanted to add the full history in case someone could think of anything else I could do. Maybe someone knows of a SoCal atty or firm that would be willing to take this on probono?

I really need help out in this question.

Joseph has lately graduated from a university with a degree in BA, but wasn’t be able to find a job. He has decided to file a Chapter 7 petition with the Bankruptcy Court. He has the following assets:

a. a 0 ring.
b. 00 in equity in a condominium secured by a mortgage.
c. 0 a week in unemployment benefits after being laid off from his job.
d. 0 in business administration books, including a hardly used copy of Business Law.
e. a ,000 retainer for his teeth prescribed by his orthodontist.
f. ,200 in equity in a new car which he purchased with a loan from the bank.

His debts are as follows:

a. ,000 in student loans.
b. ,000 to the bank for his car. The loan is secured by the car.
c. ,000 in unsecured credit card debts.

What can he keep. What will each of the creditors receive? Explain
State: ALABAMA

My hubby and I have had a tough year, recovering after an affair, family issues that we cannot get away from…small town, not a lot of jobs…everyone knows all of your business…it just seems your own problems are always compunded by everyone elses problems as well. We had to file bankruptcy last year and then he lost his job and we had to come out, our variable interest rate has almost doubled…so our mortgage is ridiculous, and with the bankruptcy refinancing is out of the question. Paying our mortgage and utilities has become draining, and if anything messes up at the house, it is VERY difficult to be able to afford repairs, it is draining. We have started talking about maybe making a move and going somewhere with better jobs and schools, like…starting over. The problem is selling our house, I do not know if we could make what we owe on it because of accrued interest while we were in bankruptcy. I am almost to the point to just let the bank take it, I mean we already have
already have ruined our credit with a bankruptcy. We have renewed our vows and I am just ready to make a fresh start somewhere…am I crazy? I just want to get away from the small town drama and all that it is about. Anyone got any thoughts or ideas?

OK, here goes…my husband and I have made a couple of BIG financial mistakes. The biggest one is that we bought a company with no reserve in the bank. As a result, we have lived off of credit (stupid, stupid, stupid). Work has taken a lot longer to pick up than was anticipated. We have 4 houses that are leased- 2 of them have payments that don’t even cover the mortgage. We have a home with a 1st and 2nd mortgage, a car that we owe 00 on that is worth 00 and needs 00 worth of work. We have a business loan of 0000, 000 in unsecured debt, and cobra coverage that ends in 2 months. There is now a lot of work but 000/ month doesn’t cover everything. We have 4 small children- two which are 3 month old twins. I’m so tired and stressed! I’ve read up on bankruptcy, credit counseling, and debt consolidation…what else is there? I’m desperate.
the way the market is right now, on the two homes that aren’t coming out of our pockets, we wouldn’t make anything- we’d lose because of closing costs. The other two houses have another year to avoid a prepayment penalty.
Right or wrong car, it’s what I have. I can’t sell a vehicle that doesn’t run for what is owed…obviously, there is no money left to buy a different vehicle (especially one that fits our family).

I knew my Girlfriend for 10 years and I was married for 5 years, we have 2 kids (9 and 4.5 years old). We are bi-racial couple she is white and I am asian. We had differences of opinion always, but since last couple of years she started taking knife out on me. Then few weeks ago she did the same, to protect my self I held on to her wrist. She got bruised on the wrist, she took the photos of those bruises.

Whenever she is in a angry mood and looking to fight, I stay away at work or hang around in my friends restaurant to go home after she slept to try to avoid escalation of conflict. If I go home after office she fights with me, If I go late, to avoid issues, she accuses me of having an affair.

Recently we had some disagreements, I was quite and calm, she called cops and they suggested to me that I might want to leave to avoid escalation. I left. To protect her, I never told the cops she tried to stab me. But the next day she went to court and got a PPO against me based on the photos of bruises. Now, she says I cannot see my kids without an police escort and I cannot get an escort unless I sign up for serious counseling. I loved my family a lot, I never cheated on her. Now my kids don’t want to speak to me and she is trying to control my relationship with my kids.

I am very upset, sad and angry. She says she still loves me and they all miss me and I should work hard and make sure I pay the mortgage and all expenses of the house pplus child support but I am not allowed into my home.

I want to do the exact opposite. Quite my 6 figure paying job, file for bankruptcy, and work a small job in my friends restaurant. She doesn’t work, she never worked, she don’t like to work. Our primary disagreements were relating to she expecting/wanting me to do chores around the house, plus start and do business and do my full time job.

The other option I am contemplating is going back to my country. My heart and soul is torn. I love them all a lot, I dont’t want to live yet at the same time I feel betrayed and just disappear from their life. I know their life will be hard once I leave. On top of that she claims she is sick.

What do I do?
Response to Kel:

Kel, I am not seeking sympathy or trying to be "Poor Me". I am honestly confused about the whole situation. I have never seen or been in a situation like this before. From where I come, the responsibilities are divided between the partners. A house-wife or house-husband doing/maintaining the house don’t make them "housemaid". It is just they are playing their part in managing the household.

I have a ton of credit card debt due to divorce, unemployed;credit in toilet; need to file bankruptcy but…I dont even have the money to do that; I have a 2004 cherokee and dont owe anything on it and would take a loan on it to pay bills and get the money to file bankruptcy but dont know if I am allowed to do that; i am unemployed right now; last year i made nothing basically; have no idea how i have even made it; stopped using credit cards nine months ago; what can i do; the grand cherokee is worth like 7 to 8k it only has 55k miles on it; i just dont know what to do; i want to just get my bankrputcy out of the way; a year ago my life was perfect now its in the toilet; barely even getting by; on food stamps; severely depressed; my precription is like 200 dollars a month and now i cant even pay that; i am 36 and make no money and have not for a long time; have no idea if there is anything out there that will help me; i put in applications and resumes in all day long; its so frustrating; now without my script i will be even more depressed and things will only get worse; i wish there was some short term presription help; my doctor charges 50 dollars a visit and i am down one payment with him; if anyone knows about bankrputy or what i can do; i dont want to get one of those 1 month loans and pay 300 screw that; i cant lose my car; plus i dont even know if you can do that when you are about to file bankrputcy i just dont know what to do anymore anyone with advice and not some stupid spam also i have a mortgage on a small condo and am not behind yet because i have a roommate; last year my brother killed himself; my best friend died a month after that and my wife cheated on me and got pregnant and i got divorced; its like can anything good happen; i have never collected any unemployment because i started my own business so i was self employed; i just dont know
i looked into gettng low income but unless your house is in foreclosure or your car is in foreclosure than they wont help you no matter how low your income is; your house or car has to be in foreclosure or about to get your car reposessed for legal aid to do it and i would have no idea on how to file bankrpuctcy; i have no idea

My husband has excellent credit score (816) and has never file bankruptcy, never had debt nor has made late payments on any of our bills. He’s been self-employed for 13 longs years. We have a good ,000+ in liquid assets (savings, checking, mutual funds, stocks, etc…). We applied for a loan last week because we’ve been preparing for this moment for a loooong time, and we have finally decided to take the plunge to buy our very first home (a townhouse in Maryland). Basing on the current interest rates and the amount of the house we’re planning on purchasing, our would-be monthly mortgage would even be less than what we’re paying for now on rent (which we have never been late on either). This morning, we received a very disappointing news from the lender saying that we do not qualify for the loan. We’ve been more responsible than the majority of the population who are buying a house now. Just because my husband has a Form 1044 instead of W-2, he was denied. All of the assets and excellent credit standing have been set aside. Is it fair?–NO!!

So, we’re now beginning to wonder how we could ever qualify for a loan? My husband is not willing to give up his own small business and change his lifestyle to be able to get a W-2 and own a home. But it’s very discouraging. Can someone shed us some light on this? Is there a particular lender that’s liscenced in the state of Maryland to work with Self-Employed borrowers?
Being self-employed means you can write off a lot of your properties that you use towards your business. Obviously, the deductions make him look like he’s not earning enough even if we still have enough left after all our monthly bills and rent. We were told that it depends on the lender who’s willing to give work with self-employed borrowers.

My parents’ small business started going under about two years ago. They sank every penny they had into it. They were unable to continue paying the mortgage on their house, and I had to start paying for it, until one year ago they transferred it completely to me. They are no longer listed on the ownership docs, and I’m listed as the sole owner.

They are now being sued by the credit card company because they’re unable to pay the debt (about 6,000). They have no assets (no car, no business, no property, no valuable possessions, under 0 in the bank) and are living with my sister. Neither one is working.

Three questions:

1) Can the credit card company come after my house, claiming they transferred it to me to hide assets? This is not true; they had no idea at the time of the transfer that they wouldn’t be able to pay the credit card off.

2) Is there any reason for them to go through the bankruptcy process, since they are too old to ever work again, so there are no future assets to protect?

3) What is the worst case scenario with the credit card company trying to sue them?

Thank you for taking the time to read my question. My wife and I have been married for 3 years, been together for 7 years. We have 3 small boys ages 1,3 and 5. I have been in jail (3 times) due to my wife calling on Domestic Violence, every time she was either pregnant in the last trimester, or after the birth of one of our boys, all cases were dismissed with prejudice against her. I never hurt or harmed her, she just went crazy. Twice she was intoxicated on wine, but the police took me away, because I am the man and she was pregnant.
In 2005 we started a small seafood business, she quit her job which had great Benefits (Starbucks) I asked her not too because of the burden of health insurance on a small business, we did great to start, but she insisted on overpaying us out of the company, also she wanted to buy a house so we also purchased a home 2 months into our new business. I was trying to make her happy. Since then our relationship went downhill, this is where I started feeling hopeless with our relationship, although I went through the court system and jail, I forgave and told myself to hold the family together.
In summer 2007 the money in company ran out and she told me that she wanted to separate, she took the kids and moved to her mothers home, I ended up having to file a chapter 7 personally, due to no money and Credit Card debt above 25000 dollars, I also have decided to surrender my home, because I can’t make the mortgage.

Currently, she is going to counseling for herself, I feel alienated because when I ask about ‘us’ the family and she and I, she says that she does not know. She moved out at the end of August, and she has not done anything for the sake of the family, but only for herself, I have talked to my parents about it and they want me to divorce her, they believe that sometime along the way of our lives, she decided that she just wanted a meal ticket, they want me to find someone that will work with me and love me.
Another important point I want to make is that my parents invested 20K, and her grandfather invested 50k into the company, this is how she and we maintained the lifestyle that is now falling apart. In the bankruptcy I listed my parents and her grandfather for protection. Recently she told me that we need to pay her grandfather back, but no mention of paying my parents, I wrote a letter to her grandparents wanting to know what the situation was with the loan they gave my wife, but they have not answered back. My wife wants me to pay her 500 per month for the next 6 years to pay back this loan, I don’t believe her, especially now without an answer to my letter sent to her grandparents. I feel that she is holding the relationship hostage to get her way.

Should I move on, I am only 37, I think that she has some mental and emotional issues, that only she can work on, I also feel used, I mean she left me right when all the money ran out, and left me to fix it.

I have written letters to her letting her know that I love her with no response.

My friends say that she has turned into a gold digger.

I need some arbitrary advice on this…

Grandparents are old fashioned and don’t let anyone in their financial business. We finally found out that they have refinanced and refinance and filed chapter 13 but didn’t finish (can’t get all the details on that either) but now the mortgage is to high and they want to refinance again with no equity in the home. What option do the have now?

WE LOST OUR PRIMARY RESIDENCE, A NICE HOUSE IN A GOLF COURSE COMMUNITY, WHEN MY REAL-ESTATE-LINKED BUSINESS WENT DOWN IN THE HARD TIMES. WE MOVED TO OUR SMALLER HOUSE WHICH WE HAD BEEN RENTING. MY BUSINESS EQUIPMENT AND NICE HOME IS BEING REPO’D, I AM 65 YEARS OLD BUT STILL TRYING TO RUN MY BUSINESS AT HALF-SPEED. I RECEIVED ENOUGH MONEY TO EITHER PAY DOWN MOST OF MY MORTGAGE ON THE SMALLER PROPERTY OR PAY OFF THE DEBTS AND NOT DECLARE BANKRUPTCY–BUT THIS WOULD FORCE ME TO CONTINUE TRYING TO CARRY THE HIGH DEBT LOAD THAT GOT ME IN TROUBLE IN THE FIRST PLACE! (CHAMPAGNE PAYMENTS ON A BEER INCOME). I AM HOPING THIS ONE GOES TO SUZE ORMAN. THANKS, APACHE BOB.

My fiance owns a business that is failing (perhaps in Feb) and will owe the bank approx 0,000 which was a small business loan which was leveraged against the equity his condo. Can someone tell me what will happen to the condo? Do they reposess it for what the bank estimates it to be worth and we’re out on the street right away? (Condo is worth about 210) Do we get to keep it and he just works and gets his wages garnished? Should we sell it really quick and pay off the loan?(not very possible, but worth a try?) We’re hoping he gets enough customers this month to hold him out for 6 more months, but just incase I’m wanting to know. Thanks so much!!! Also, I live in Canada.
We can pay the mortgage no problem. But the 100,000 IS leveraged against the house, and he has 1.5 yrs left on his lease for his business at about 6000 a month.

I’d imagine the sell it, pay off the bank loan, or atleast most of it, but what happens to the rest of the money? There are no other debtors that that. They don’t pay off the entire lease, do they?

i had a small business which has gone under in this currant recession i have 2 houses one rented and one my home both of which i have remorgatged twice for the business so they are both in negative equity and now no income and a considerable debt a large amount interest was added by the various banks i have a tenant in the house the rent pays the mortgage and they are unaware of the problem any help would be a comfort i did try and do things the proper way and am in the uk..

The company we took our Mortgage out with filed Chapter 11 and there no longer in business and they also never had them for long but i need to get a copy of them where else would i look besides the title company cause they dont have them eather so where else would i look to find them there was no closeing for us only them they had the closeing and did not invite us so ive been looking all over and can not seem to come up with anything if you know where else i could look it would be very helpful
Thank You

My dad has a large credit card debt (mostly from my mother’s illness before her death… years ago) and has recently been forced to retire due to his small business failing. The business had no assets (no equipment no owned buildings, etc.) and basically no longer exists in any form. He does not own a home or have a mortgage. The only thing he does own is an old car, really. His bank account is at 0 right now.

He has recently moved in with me. I own my home (well, paying a mortgage, anyway) and have about ,000 in my bank account right now.

Anyway, to make that short, there is no way he can pay off the credit card debt and I’m just wondering what in the world is going to happen with it.

Is there any danger that when he can’t pay it or declares bankruptcy, they’ll come after me?

We had a business in California for 10 years, after 9-11-2001 we started losing our customers due to economics and we had to file bankruptcy in 2002 on both personal and business. We filed chapter 7. We moved to Florida, did not start a business and now my husband’s job has taken a turn for the worst, he is a salesman and the commission is not the the same to be able to make the payments that we have. There is no equity in the home to be able get a line of credit due to the real estate market and we are just barely keeping afloat making minimum payments on unsecured cards. We have exhausted all the savings and my husband cashed out his 401-k, our stimulus package payment went to our mortgage. Now I am considering the Chapter 7 but how long before I could file for this?

Please watch the new video. Just came out.
http://ny1.com/content/top_stories/106683/squatters-the-latest-challenge-in-waterview-battle/Default.aspx
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I’ll just list the facts. My case is very complicated.
* My house is located in Staten Island, New York
* My house is one of 28 in Home Association (HOA)
* My house is one of 9 that facing the water
* In 2007 Nor’easter hit and retaining wall has collapsed
* 9 families were ordered to evacuate by Department Of Buildings
* Since houses did not have any damage besides their back yards, home insurance did not cover the damages
* Same time FEMA declared Staten Island a disaster zone
* We were suppose to get .5M Small Business Administration loan,
but never did because of the fact that other 18 homes refused to take it
* To repair the wall we need to spend millions that we don’t have
* It has been 2 years since it happened and we suffered unimaginable hardship. We had to live in very poor conditions renting or living with relatives and continue paying mortgage
* We went through 5 lawyers spending tens of thousands without any success to get back to our homes
* Last week-end we have discovered that our homes were burglarized and vandalized to add to our misery. Watch this: http://ny1.com/content/top_stories/106498/two-years-later–rosebank-storm-damage-remains/Default.aspx

Now is the question. At this point there is very little hope for us to get back to our houses. We used up all possible legal ways and exhausted financially and emotionally. Personally I’ve put down all my family’s savings for this house and still owe over 0K to the bank. What options do I have to walk away from the property?
THANKS for any help
16 hours ago – 3 days left to answer.
Additional Details
My wife and I are employed. Is there a way to apply for bankruptcy without bank going after our pay checks?
16 hours ago

Thanks a lot for all answers.
* Flood insurance was not required because the property is 50 feet above the water level.
* Builder is nowhere to be found. Plus it’s been more than 10 years since construciton.
* We can’t occupy our houses because of various complications that are beyond this post. If you’re interested let me know and I’ll post anohter question