How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
A new question is answered every 9 seconds

Ask a Business Lawyer

Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: General
Satisfied Customers: 1507
Experience:  Run my own successful business/contract law practice.
18572087
Type Your Business Law Question Here...
characters left:
Business Lawyers are Online Now

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Business Bankruptcy Laws

What is business bankruptcy?

Business bankruptcy is a process where a business can get rid of or repay some or all of their debt under the protection of a federal bankruptcy court. In many cases bankruptcies can be divided into two different types, one being liquidation and the other being reorganization.

What is chapter 7 business bankruptcy?

When a business is starting to fail or is so far into debt that they cannot continue to run the business, the owners of that business normally file for a Chapter 7 bankruptcy claim. The chapter 7 bankruptcy is also known as liquidation. The bankruptcy court assigns a representative that sells the company’s assets for money and then delivers the proceeds to the creditors. Even though the court assigns a representative the court also creates a bankruptcy estate. These bankruptcy estates give the court and the representative the power to over look and handle all the company’s financial matters. In many cases the bankruptcy court may approve the representative to run the business for a certain amount of time, this operation normally benefits the creditors and improves the liquidation of the estate. Normally a Chapter 7 representative will be responsible for selling all the assets and dividing the proceeds to the creditors after administrative and the legal expenses have been paid.

If someone’s key supplier is going to file for bankruptcy do they still need to pay for products that are shipped to the S Corporation before they go to court?

The S Corporation would still be responsible for any debt. The bankruptcy will only affect the corporation if the supplier would owe the corporation money. Any and all money that the corporation owes to the supplier will go to the bankruptcy representative if the bankruptcy as been filed and will be in possession of the bankruptcy estate, that is if the corporation pays before the bankruptcy is filed. Now, if the corporation doesn’t pay it would be like any other debt that is accumulated where the corporation could be in subject to collection from either the supplier or the bankruptcy representative.

If a company closes down with no income coming in, is there anything that will protect the company while it tries to pay the former employees, and if the company does go bankrupt does the company still have to pay the former employees?

Any claims of the former employees are considered priority claims and can be paid through the bankruptcy if there is any money after liquidating the property, etc. Now if the company is not in bankruptcy the employees can file a wage claim against that employer for the money that is still owed to the employee, the state department of labor will work with the employer and the employees to make sure that everyone is paid, that is if there is enough money to pay them.

What happens when a company has filed bankruptcy and the company does not have the money to pay the employees?

If the employer has no money, then the company cannot pay the employees. Therefore the employees will need to file a wage claim or wait for the company to file bankruptcy and then begin liquidating the assets in order to get enough money to pay all the former employees. Also, the employees can file to put the company into an involuntary bankruptcy, this would be very expensive and often times not worth it if the company is closing and doing this on their own.

When a business files bankruptcy there many options that the business is entitled to, and also there are some requirements a business must meet when starting a business after bankruptcy. All this information can be received by an online Legal Expert.

Ask a Business Lawyer

Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: General
Satisfied Customers: 1507
Experience:  Run my own successful business/contract law practice.
18572087
Type Your Business Law Question Here...
characters left:
Business Lawyers are Online Now

How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Business Lawyers are online & ready to help you now

Dimitry K., Esq.
Attorney
Satisfied Customers: 1507
Run my own successful business/contract law practice.
MShore Law
Attorney
Satisfied Customers: 1233
Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
FiveStarLaw
Attorney
Satisfied Customers: 1174
25 years of experience helping people like you.

Recent Bankruptcy Questions

  • Can chapter 7 be reversed , let's say I started maki G money

    Can chapter 7 be reversed , let's say I started maki
    G money and wanna pay people off
  • Any one know bankruptcy Law?

    Any one know bankruptcy Law?
  • ,My best friend got lied to and scammed by her father in

    ,
    My best friend got lied to and scammed by her father in law a while back. She and her husband went into business with her FIL and because she had such good credit she signed alot of papers, credit cards ect in her name but did all this without knowing any details and just trusting her husband. Well, her father in law maxed every card and then stole all the business money from her and even filed bankruptcy so he wouldnt have to pay her a dime. Now he is filing a motion in court to bring her in and get the equipement from the business from her but its not longer in his possession in his name cause he filed bankruptcy and she just sold it all after a year of it sitting in storage. She is a single mom of 2 girls now and cannot afford to go to court or to pay back any money. I dont think she has anything to worry about since he did file bankruptcy but shes all upset and afraid of what her father in law can do. hes a very manipulating mad man who can twist a story and make himself out to be the victom. what can i tell her? Does she have reason to fear or is it a non effective claim ?
< Last | Next >
View More Business Law Questions