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JBaxLaw
JBaxLaw, Attorney
Category: Business Law
Satisfied Customers: 11331
Experience:  Experienced in business formation and licensing issues
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Please help, any help would be wonderful?

Customer Question

My father and I had a falling out in business, and cryinng over spilled milk is not going to help. I can't sustain this business on my own... trust me I have tried everything and it has a lot of value but I currently owe aproximately 10 Grand, I do not want 3 checks to bounce or any legal action taken when the value of the businesses far exceeds that amount. In a worst case scenario however who knows if I will receive anything and if I continue down this path it will not help. The sad part about it is if I had the capital to work with I used to before my father backed out because he doesnt understand the internet, so he couldn't control it in any sense, it is a solid business. I built a great business that is falling apart because I owe money I don't have and am now out of merchandise and consignment isn't working. 30K in sales in one weekend in August to this situation is rediculous but I need to own it and deal with it ASAP. Is there any legal way to put a hold on business accounts, and I can individually notify the 4 people I owe money to in a legal manner, and then I can focus on selling it rather than legal action taken against me. Consigment for a business this large still ends up as robbing Peter to pay Paul and its basically only remedied with 50 Grand working capital which I didn't have a chance to develop. I am only 30, sitting on a Goldmine with not enough working capital. It is a strange situation to be in and I really need some legal advice while it can ppossibly be remedied and I have no legal problems, but I'm out of time.  Trust me I understand the Disclaimer and before I have a heart attack from the stress of all of this that has happened any advice whatsoever is better then me shutting this down Sunday online and not knowing what to do and facing possible criminal prosecution over an amount of money I never what have even had to consider thinking about.  Lesson learned, but now its townhouse to motel payed by the month, so its bad enough already.  I gave it everything I had.
Submitted: 4 years ago.
Category: Business Law
Expert:  JBaxLaw replied 4 years ago.

BizAttorney : Hello, Please click the ACCEPT button, even if you have placed a deposit or are on a subscription plan.
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BizAttorney : By reading, on you agree to the above statement.
BizAttorney : Please note, nothing herein is intended as legal advice, no legal advice is being provided, no attorney-client relationship will be established and only general information is provided so that you may analyze your situation.
BizAttorney : By reading on, you agree to the above statement.
BizAttorney : Now, we can get started.
BizAttorney : If I understand you correctly you are asking for information about protection from creditors.
BizAttorney : Filing for bankruptcy protection creates an automatic stay preventing a creditor from attempting to collect debts from you.
BizAttorney : The recouse available for creditors is a civil action. They will attempt to obtain a judgment against the business or you personally.
BizAttorney : The factors are often considered when determine what course of action to take.
BizAttorney : Are you with me?
BizAttorney : Hopefully the issue has been resolved.
JACUSTOMER-ufni3564- :

im here

JACUSTOMER-ufni3564- :

Im actually asking

JACUSTOMER-ufni3564- :

How to handle shutting down my business bank account, first and foremost which is at a credit union?

JACUSTOMER-ufni3564- :

I believe they will ask if I have any outstanding checks, correct?

JACUSTOMER-ufni3564- :

hello?

JACUSTOMER-ufni3564- :

Im actually asking

9:23 AM

How to handle shutting down my business bank account, first and foremost which is at a credit union?

9:24 AM

I believe they will ask if I have any outstanding checks, correct?

BizAttorney : An account can be closed, but outstanding checks will bounce.
JACUSTOMER-ufni3564- :

then its criminal

JACUSTOMER-ufni3564- :

I just need some time to sell it

JACUSTOMER-ufni3564- :

I know if I could somehow protect myself from a small amount of debt

JACUSTOMER-ufni3564- :

for a short time

JACUSTOMER-ufni3564- :

I could sell this

JACUSTOMER-ufni3564- :

but worrying about this debt

BizAttorney : Are you still with me?
BizAttorney : It is not the debt, but the writing of bad checks which is a crime.
BizAttorney : Writing checks for goods or services received for which there is insufficient funds to cover can be criminal.
BizAttorney : If the checks were for goods, consider returning the goods.
JACUSTOMER-ufni3564- :

I mean the checks

JACUSTOMER-ufni3564- :

yep

JACUSTOMER-ufni3564- :

the 3 checks equal 8 grand

JACUSTOMER-ufni3564- :

I wrote them in advance for merchandise taken on consignment

JACUSTOMER-ufni3564- :

and its like im robbing peter to pay paul now

JACUSTOMER-ufni3564- :

I do not think he would do these things

JACUSTOMER-ufni3564- :

but I need to know my rights, ya know?

BizAttorney : There is no protection in regards to checks which are already written. Sometimes the recipients will agree not to deposit the checks in exchange for a signed repayment plan.
BizAttorney : It is possible to face criminal charges for writing bad checks, but that does not mean that will occur. Working with the recipients of those checks is key to avoiding a complaint to law enforcement.
JACUSTOMER-ufni3564- :

worst case

JACUSTOMER-ufni3564- :

so he has a check for 3K end of, march, and april and 2K which I asked him to hold for february

JACUSTOMER-ufni3564- :

other than that I am not worried

BizAttorney : Do you have any other questions?
JACUSTOMER-ufni3564- :

he was a wholesale customer of mine who sort of tried to help

JACUSTOMER-ufni3564- :

but its not working out

JACUSTOMER-ufni3564- :

tons of business

BizAttorney : It may be possible to obtain a loan to cover the payments. Perhaps a credit card. The debt owed to a credit card company, versus a bad check, would not have any criminal concerns.
JACUSTOMER-ufni3564- :

but I dont have time

JACUSTOMER-ufni3564- :

I like that

JACUSTOMER-ufni3564- :

I thought about that

JACUSTOMER-ufni3564- :

but how do you present something like that

JACUSTOMER-ufni3564- :

when a former agreement is falling apart

JACUSTOMER-ufni3564- :

ok so

BizAttorney : If you think of any questions later, please feel free to follow-up later.
JACUSTOMER-ufni3564- :

if I say to him I can give you 500 right now

BizAttorney : Please be so kind as to leave me a positive feedback rating.
BizAttorney : This is especially true if they understand there is a risk of checks not being covered.
JACUSTOMER-ufni3564- :

Ive lost everything

JACUSTOMER-ufni3564- :

this has destroyed everything I built

JACUSTOMER-ufni3564- :

well no offense but if I could get credit I would have

BizAttorney : If you have a few seconds, I would really appreciate a positive feedback rating in each. You will be prompted after pressing the accept button in the questions. I do not receive any credit for assisting you unless you accept my answers. But, you can always follow-up with me later if you think of other quetions.
BizAttorney : I am only providing information regarding options in such situations.
JACUSTOMER-ufni3564- :

It says if I accept it ends this chat

BizAttorney : Thank you very much.
JACUSTOMER-ufni3564- :

when I leave this chat I dont want to bug you anymore

JACUSTOMER-ufni3564- :

so you can't answer me?

BizAttorney : I do not mind at all. I enjoy providing this information.
BizAttorney : Answer what?
JACUSTOMER-ufni3564- :

what can I do, or card to play, against one person holding 3 checks that I want back

JACUSTOMER-ufni3564- :

there has to be something

BizAttorney : So, in sum a person who has issued mutliple checks they cannot cover has no ability to demand there return.
JACUSTOMER-ufni3564- :

I know

JACUSTOMER-ufni3564- :

flee to Mexico lol

JACUSTOMER-ufni3564- :

why I didn't who knows

JACUSTOMER-ufni3564- :

Im an Economist, who should have gone to law school

BizAttorney : Thank you again. The system is acting abnormally making posting difficult. I have another customer waiting, so I will end the chat session. Please follow-up later if you need any other information.
BizAttorney : Thank you again.