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Maverick, Attorney
Category: Business Law
Satisfied Customers: 5749
Experience:  20 years of professional experience
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I am a small business that was sued 2 years ago. I am now going

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I am a small business that was sued 2 years ago. I am now going to court for this case on April 26th for a jury trial.To sum it up, I own a design firm. I allowed other designers to buy from my company at a discount. A designer did so, her client got angry with her and sued my company because he thought she worked for me for his draperies. He told my company to not touch the draperies to finish the work and now is sueing saying we did not finish. He wants all the profit ( outside of what we paid directly to vendor ) and money to have someone else finish them up. She also sold him furniture, we delivered to him 2 years ago( have all paperwork that was signed off) he now says he is submitting furniture because he wants money back.He has had possession of furniture 2 years.My lawyer says the only concern he has is that the jury might feel he deserves some money if he is not happy.If that where to happen, could my company file bankruptcy and start over and not have to pay?
Submitted: 6 years ago.
Category: Business Law
Expert:  Maverick replied 6 years ago.
Is your small business operating as a sole prop, inc, llc, or some other form?
Customer: replied 6 years ago.
Hi, I am a Inc.
Expert:  Maverick replied 6 years ago.

Chapter 7 protection allows corporations to be liquidate its assets, cease operations, and avoid further collection or recovery actions without future legal proceedings. It is the last alternative for most companies, as they will cease to exist after the process is complete. This means that your corporate name will be sacrificed


Chapter 11 protection is the most popular choice for corporations that want to continue operating. This allows companies to "reorganize" their operations and debts, while receiving protection from current creditors collection efforts and legal actions.


The third alternative is to not file BK at all and just close and wind up the corporation. You may have to start a new corporation under a slightly different but similar name.



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