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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 19318
Experience:  B.A.; M.B.A.; J.D.
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Business bankruptcy ,

Customer Question

Submitted: 1 year ago.
Category: Bankruptcy Law
Customer: replied 1 year ago.
(Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Phillips Esq. replied 1 year ago.
What is your question?
Customer: replied 1 year ago.
I was running a business on eBay , accepting payments on PayPal .
Recently I sold 2 rings on eBay worth 32k. It's was signed jewelry .
To one buyer ,she claimed it was not authentic , it's her thought , she returned my jewelry and PayPal merchant service shut my account down . Now I can not sell anything to bring my PayPal acount from a negative $27k because EBay and PayPal where my busniss . I don't have the money to pay back PayPal .i would like to file for business bankruptcy . bot***** *****ne is what should I do
Customer: replied 1 year ago.
I didn't deceive any one I send them what they paid for . Apparently the buyer didn't won't it or what ever reason claimed its not authentic because of her believes with no evidence to uphold that return . I got the jewelry back but the point is I can't resell it because PayPal shut me down and I have no way of bringing my account from negative 27k back to normal . What should I do here
Expert:  Phillips Esq. replied 1 year ago.
Thank you for the information. Regrettably, a business bankruptcy (Chapter 7) would not discharge the debt unless Paypal agrees to write off the debt. Also, even if the debt were discharged, Paypal has no obligation to reopen the account. So, unfortunately, you have to find a way to bring your account up to date or go to another company similar to Paypal to start a new account. Kindly give a positive rating to my response so that I can receive credit for responding to your post. There is no additional cost to you for doing this. Thank you for your cooperation.
Customer: replied 1 year ago.
Okay again please review my question .What chapter can I file the business
Is gone under . I would and could not longer survive . Now what chapter should I file regardless if PayPal discharges or not as long as the judge does .
Expert:  Phillips Esq. replied 1 year ago.
If you are an incorporated business, you can either file under Chapter 7 or Chapter 11. Chapter 7 is a liquidation Chapter. If you file Chapter 7, your business will be liquidated and that business would no longer be in service. You have to however, formally dissolve the business with your Secretary of State's office. Eventhough there is no formal discharge of debt in a business Chapter 7, it would be unlikely for any creditor to come after the officers and directors of the failed business after an orderly liquidation in bankruptcy. Another option is Chapter 11. However, Chapter 11 is very expensive. Just the filing fee is $1,717,00; the Attorney's fee is in the thousands. An incorporated business cannot represent itself in a bankruptcy case. So, you would need an Attorney to file the bankruptcy for you. However, if the business is granted a discharge, all debts are discharged in a Chapter 11 case. If your business is not incorporated , if you are a sole proprietorship, then you can file for Chapter 7 and your debt would be discharged if the Court grants an Order of Discharge in your bankruptcy case. Then if Paypal still won't reopen the account unless you pay the debt, you can file adversary complaint with the bankruptcy Court for Paypal's willful violation of discharge injunction. See 11 U.S.C. Section 524. You can use the following sites to find local Bankruptcy Attorneys: Kindly give a positive rating to my response so that I can receive credit for responding to your post. There is no additional cost to you for doing this. Thank you for your cooperation.

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