Sure -- I understand. I actually have to run to an appt -- can I just have you email me a response? Thanks!
3) YOu can speak, but only about the stuff in the petition. YOu cant ask her a ton of questions, maybe 3 or 4 quick ones.
4) I do recommend going to court beforehand and getting a copy. They will make a copy of BK petition for you, you just have to pay for it.
5) The Trustee at the hearing, or shortly after, will determine if there are assets to be paid out, and everyone unsecured creditor will get an equal percentage of the total amount she owed. In order to qualify, you will have to fill out a Proof of Claim form as to what she owes you. The Trustee will mail it to you if there are assets.
6) To do a deposition, or 2004 Exam, you have to file for one with the Court. It would not be something you would want to do without an attorney. It will be pretty difficult, but might not be worth the time if there are no assets.If there are none, no matter what she says can get her to pay, unless she induced you to sell the business or get a loan by fraud, inducement, or if she hid things. Again, an attorney would be able to review the facts of your situation with paperwork in hand and be able to answer it.
7) Your right to the assets will be the same as other creditors unless you are secured. So for example if you sold it to her and filed a UCC on the assets of the business, then you are a secured creditor/lienholder and get paid sooner.
8) If the loan is to the LLC, then it is not discharged, but if the LLC is closed, then they would try to get out of it that way. YOu may want to ask at the 341 a) if the business is still active, b) what happened to all the business assets/server/etc, and c) basically any question that leads the trustee to realize there are assets, because that is how you get paid.
9) You are correct about the LLC and ownership liability
10) You dont want the business to tank if it is going to remain open since the business owes you money. It is in your best interest for the business to be profitable and so you get paid back.
I think that was all your questions. If there are more, let me know. Also your profile says you are new to JustAnswer. Be sure to provide postive ratings whenever you ask questions if you were given good service because it shows on your profile.
I am one of the helpful ones, but some people do not pick up your question to answer if there are 0 positive ratings listed next to your name.
Silly, I know, but it can help you to get fast quick service in the future!!!
With this many questions, it may take a little back and forth to get your questions fully answered, so let me know and I will get back to you ASAP.
Have a great day!!!!
Thanks so much for your info. I will bet that you hate anal retentive clients like me with so many questions! But I do need a couple of clarifications:
1) I am definitely going to the hearing, but I needed to know what documentation etc. I should take with me.
Well for the hearing you dont need anything
THey wont ask you questions or ask you anything besides who you are
and again you only get 3-4 questions normally
so plan ahead of time what you will ask
and again it should be focused on finding assets
So Where is the server, any accounts receiveable, where are the assets
or it could be questions to see if they frauded you
like when you bought it did you lie on the financials as to what you are making etc
so if they made themselves look better or more well off than they were
then you sold to them and gave them a loan on that info
and if it was a lie or fake, then that is fraud
if there is anything bad like that, then the debt os not discharged
Also do some research
Look into the business
call them as a random buyer
or try to buy online
if at the hearing, they say business is closed or not doing anything
you can say "Well I just tried to buy something online and it was going through, but I cancelled the order prior to paying."
so you can try to catch them in a lie
so keep in mind you cant testify
or really provide details
it is more in the questions you ask them
if you ask too many or it gets too long
the Trustee will tell you to stop and schedule a 2004 Exam
So be prepared
and be ready to trip them up
you cant just speak out either
you have to be silent and then you can ask questions as the end when the Trustee says
Okay, another clarification for #6 - I do not understand what you mean when you say
"If there are none, no matter what she says can get her to pay, unless she induced you to sell the business or get a loan by fraud, inducement, or if she hid things."
I would try to call the Trustee ahead of time
let them know you are coming
and that you will have some questions
What I mean is that if there are no assets, then there is no money you can get
so assets is the key
the other part of it is, as we discussed, certain debts are non-dischargeable
so if they got you to sell the business on a loan to them through false pretenses, you can have the debt not discharged
Again, however, if the business is still running, you may want to contact them
and work out payment plan arrangements
If they are, I would recommend not being too adversarial at the hearing
because you get more bees with honey
but if there is fraud or lying or whatever, that is different
If you have any more questions, please let me know!
I know it is confusing.
There are so many rules and restrictions and paperwork
I hope it works out and you get paid!
Sure, absolutely. I
am still reading through your initial notes. Let me shoot you any more quick questions then I will get to work on your instructions.
No problem, like I said I will be on and off throughout the night, so take your time!
Should I mention to the trustee that the promissory note is in the name of the LLC, or is this something that I can include in the documents I file with the court?
I don't think I got an answer to this one.
- Is there any chance at this point of getting her to reaffirm this debt or agree to voluntarily repay us, as she has said over and over again that she does plan and WANT to pay us? If so, how?
You dont have to mention that about the Note. Did you happen to get a personal guarantee by her?
She could reaffirm it if you are considered secured by the business, and if so, her attorney would prep the documents and you can review them and sign off.
What do you mean secured by the business?
For example, if you gave them a loan for the purchase of the business, then essentially all the business assets and such are secured by your loan.
To make this official, usually you would have filed a UCC with the state
but, if the Debtors want to pay and believe you are secured, you can get around it potentially.
One would need to review the petition and your agreement with them to know for sure.
I never filed a UCC, and most of the assets were intangible, since it was a web business, so I am fairly sure that does not apply here.
Ok, well then definitely see if the business itself i still running so that it can potentially pay you.
If you have more questions, please let me know! Have a great day.
This question is still reflecting as open, so let me know if you have any more questions. If not, be sure to provide a rating, (positive of course :) ) in order to close out this session so it does not remain open.
Again, however, if you have more questions, please let me know.
Good afternoon, it has been three days and I was wondering if you had more questions. This session is still showing "Open" so I need to close it out so that our slate is clear of unresolved cases. Please let me know if you need anything else.
Have a great week!!!
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).