Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney.
Your personal bankruptcy should not have any effect on the Kentucky business if you are only an officer and not a member or shareholder.
However, if you are a member/shareholder, you would have to disclose your ownership interest in your personal bankruptcy, and the bankruptcy trustee has the right to liquidate/sell the interest in order to pay your creditors. Whether or not the trustee does this will largely depend on what the value of your ownership interest is.
If your position is just as an administrator/official, then there should be no effect.
Thank you for your speedy reply. I am the only shareholder and currently the Corporation is disolved because I haven't filed the taxes in several years.
I have debts against the business which is a 60 year old Cemetery and it isn't even worth what debt I have against it. The reason I am so far in debt is because I borrowed money from family to keep it running.
Can I transfer the Cemetery to the lein holders without a problem?
If you're planning on filing bankruptcy, I would recommend that you not transfer anything before filing as it could be considered a preferential treatment. Instead, just wait until after you file bankruptcy, and the creditor will file a proof of claim and can then file a motion for relief from the automatic stay and recover the property by virtue of its lien.
That's a lot cleaner way to allow this to happen.
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I replied but I don't think it went through. Forgive me if this is a duplicate.
My question was since the first 2 loans were borrowed more than 12 years ago which is beyond the allowable enforcement time in the State of Maryland, can my Dad get a Judgement against me and go after the Cemetery? If not, I will not have to go Bankrupt.
The statute of limitations begins to run from the date of the breach. Under Maryland law, the statute of limitations on a promissory note (loan) is 6 years from the date of the breach. Thus, if it has been 6 years since you stopped paying the debt, then you could claim that collection is past the applicable statute of limitations.
If you were to be sued, you could file a motion to dismiss based on the applicable statute of limitations.
The statute of limitation you're referring to is a contract under seal, which is different that a regular contract or promissory note.
A contract under seal is a formal contract that requires no consideration (money) and has the seal of the signer attached. I highly doubt you have a contract under seal.
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