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Recent Business Bankruptcy questions

For a bankruptcy attorney. Let's say a person contracted

For a bankruptcy attorney. Hello, Let's say a person contracted with a business, and the business has filed bankruptcy. The business' bankruptcy attorney contacted the person and notified them that the business will be distributing the remains of its inventory to all affected persons under contract. The person responded to the bankruptcy attorney and stated yes, they would like to receive the inventory items. But then the attorney arranged for direct contact between the bankrupt business and the person. Well, the business owner penned a vitriolic email, attacking the person and stating the person can only pick up the inventory items when the person pays the business owner a certain amount, which is less than $50. (Background: A few years ago the person pointed out numerous contract violations, and in response the business owner "revised" his accounting records and launched a bilious attack. Please assume for the sake of argument that the person is right and the business owner indeed defaulted in several contractual areas, as was done to others as noted in internet postings.) Several questions. First, was it proper for the bankruptcy attorney to put the business in direct contact with the person?

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Phillips Esq.

Attorney

Juris Doctor

20,246 satisfied customers
BUSINESS BANKRUPTCY ATTORNEY ONLY: Can debts in an LLC

BUSINESS BANKRUPTCY ATTORNEY ONLY: Can debts in an LLC partnership filing taxes as a Sub-S be discharged in a Chapter 7? If one of the two equal partners withdraws a large sum of money to pay his own separately owned company without authorization of the other partner and this potentially renders the LLC insolvent and unable to pay its payroll taxes and other third-party obligations, forcing the other partner to put the LLC into Ch 7, could the Trustee discharge that debt AND seek to recover it due to the partner who made the withdrawal preferring his own separate company over other creditors and is this likely? Lastly, can IRS force an Involuntary Ch 7 for unpaid payroll taxes?

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DrakeLAW

Juris Doctorate

948 satisfied customers
I am 2 months into a Chapter 13 bankruptcy (waiting on my

I am 2 months into a Chapter 13 bankruptcy (waiting on my official plan confirmation). Within my plan, I 'crammed down' a vehicle title loan that I obtained from TitleMax of Virginia. I was just reading over the agreement I signed with TitleMax and noticed that my becoming "subject to a bankruptcy proceeding" is defined as an "event of default". The agreement goes on to list TitleMax's remedies in the "event of default". I have been under the impression that as long as adequate protection payments are being made to TitleMax (until such time as my trustee begins distributing payments to them from the plan), then they cannot repossess my vehicle? (I am a Pro Se filer by the way). I have attached a photo of the specific sections of the agreement in question.

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DrakeLAW

Juris Doctorate

948 satisfied customers
Business BankruptcyHi,I own 2 taxi Medallions in Chicago

Business BankruptcyHi,I own 2 taxi Medallions in Chicago (2 licenses to operate taxicabs).,they are on a LOAN ,debt are totaling $520000 .Thre's no Equity in the Medallions,sinceUBER came,the value of a Medallion is estimated to be $150000.Two years ago,the value of each medallion was 350K;then UBer came and destroyed the value...SO I am underwater.I purchased the medallions as follows:one for 50K and one for 80K;then I refinanced the medallions multiple times "cash out refinancing",so my Loans became bigger.I cannot afford to pay the monthly payments anymore ,(as I don't have drivers on my cabs )and soon they will probably sue me.I am also personally liable for debt.So I will have to file BUSINESS /CORPORATION BANKRUPTCY.My company is a C CORPORATION.I will soon file personal bankrupcy also.Issue:I didn't file the BUSINESS TAX RETURNS for the past 5 years,as I was always at loss,and I thought that I don't have to do this if Im at loss..My mistake.QUESTION: I should file the back taxes before I start the CORPORATION BANKRUPTCY??

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DrakeLAW

Juris Doctorate

948 satisfied customers
Bankruptcy specialist: We have a client company in trouble,

For business bankruptcy specialist: We have a client company in trouble, and will be speaking with a local BK attorney in person. But for important matters, I like to hear a few explanations or opinions. -- You could say that this client operates in a major industry, where it takes several years to build a business, gain credibility with all the players, and make it over the hill. This company is almost at the peak, ready to go over, but there is resistance due to managing all the debt and vendors/creditors that have build up along the way. Of the +/- 50 creditors, they have been great to work with, for the most part. Only one small active, collection lawsuit so far, a couple collection efforts, but more could start to come in. The good news is that, through extraordinary effort, this company has finally made it over the hill, in terms of high level customers and work, in the past month or so, and they are busy almost to capacity. But now it's like a horse race for cash flow, to put out all the fires, long enough to actually make it, and gain a foundation. -- In a perfect world, this company would be able to prove that they have made it on the offensive side, and get a bank to aggregate everything into one loan, re-package/re-capitalize, simplify, pay off vendors and creditors, gain some operating cash cushion, and move on. But that's pretty dreamy. -- What are the primary factors in a small business being able to qualify for Chapter 11? And generally, how do you "know" when it's time to stop trying to work debts out yourself, and file? Feel free to ask any clarifying questions. Thanks.

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DrakeLAW

Juris Doctorate

948 satisfied customers
I have filed a Chapter 7 business bankruptcy pro se. I'm

I have filed a Chapter 7 business bankruptcy pro se. I'm well aware I have to have an attorney on a business bankruptcy.The question is:- How long do I have till I need to get an attorney appointed?- Can I just get the chapter 7 dismissed, as the company we are having problems with look like they are willing to settle?- And/or can we convert it to a Chapter 11?

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Ely

Counselor at Law

Juris Doctor

67,064 satisfied customers
If I can't pay back my business loan, $100k (with personal

If I can't pay back my business loan, $100k (with personal guarantee) and business credit cards, $50k (with personal guarantee) what can happen? What is at risk, personal asset wise? I do own a condo which is rented to a third party ($250k value, $180k mortgage) and a house, which we live in, ($410k value, 385k mortgage).

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38,828 satisfied customers
If a business establishes a Limited Liability Company structure

If a business establishes a Limited Liability Company structure with little to no assets and it is a sole proprietorship. Then, the company has to declare bankruptcy to escape some business debt, what is the process?If the loans are in the company name but the individual didn't co-sign for them but did provide a social security number for the application - said to be just for identification purposes - and the load does not show up on the individual credit report; what is the liklihood that the bank will go after the owner(s).Are there typically debt settlements made prior to a business bankruptcy if the bank feels they might lose out on the money?

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WALLSTREETESQ

Attorney

Doctoral Degree

18,084 satisfied customers
I am listed as a c corp in Florida and purchased a small business

I am listed as a c corp in Florida and purchased a small business with a promissory note of 17k (no personal guarantee). I am unable to negotiate a favorable new lease with the landlord and will owe the previous owners of the store $4,700. The note states they can take over the business if I do not pay, but there will be no lease agreement. Will I be liable for the $4,700 or will they just take left over inventory and equipment?

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5,318 satisfied customers
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