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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41221
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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Consider the following scenario Your client is being sued.

Resolved Question:

Consider the following scenario: Your client is being sued. You have asked the client’s lawyer about the possibility of losing the lawsuit. The client meanwhile has asked you to describe what would happen to their financial statements. The client has also informed you that, if they lose the lawsuit, they anticipate losing their mortgage and have started talking to their mortgage lender. They want to know if part of their debt is forgiven or if their mortgage is rewritten or if their mortgage will be written if they file Chapter 11. The lawsuit also involves a patent held by the company. The company had acquired a hedge contract against the impairment of the patent. Aside from the recovery of the hedge, the client wants to know how the impairment of the patent in the event of losing a lawsuit will be reflected on the financial statements.

• Conduct research in FARS individually to answer your client’s questions. Then, write a 700- to 1,050- word memo that is brief
Submitted: 7 years ago.
Category: Legal
Expert:  Dimitry K., Esq. replied 7 years ago.
Thank you for your post. It appears the question was cut off. Could you re-post please?
Customer: replied 7 years ago.
I apologize, but I forgot to include a period. It was not cut off.
Expert:  Dimitry K., Esq. replied 7 years ago.
Thank you for the explanation. I am working on your answer and should have it done by evening. Would that suffice?
Customer: replied 7 years ago.
Absolutely not a problem. I appreciate your help.

Sincerely, XXXXX
Expert:  Dimitry K., Esq. replied 7 years ago.
I am sorry for the delay--it appears that I am not familiar with "FARS" as it pertains to accounting. While I can answer your question from a purely legal perspective, I will no be able to provide you with an accounting background.

My apologies.


Dimitry Alexander Kaplun, Esq.
Customer: replied 7 years ago.
That is completely fine. My primary reason for your help is to make sure I'm on the right track with what I have.

Thank you again for your help,
Jana Larson-Brock
Expert:  Dimitry K., Esq. replied 7 years ago.
Then let me assist you quickly, if you do not mind.

Legally if the company is sued, the entity itself becomes whole liable for any suit award incurred. Short of bankruptcy and a subsequent closing or a reorganization, the company maintains the responsibility to pay off the debt.

The mortgage lender can choose to forgive or modify their loan, typically though a loan modification, but that solely depends on the lender--the company cannot compel such a situation to occur.

Under Chapter 11, or typically known as a "reorganization" bankruptcy, debts are NOT forgiven or discharged--they are merely organized and set up under the trustee as a means to pay the debt over time. Additionally a judgment lien award cannot be discharged short of the full liquidation of the company. However using that factor the lender may be willing to modify the loans, especially if they are much more likely to be compensated instead of the company fully liquidating itself as under Chapter 7.

Hope that helps!

Edited by Dimitry Alexander Kaplun on 1/8/2010 at 2:41 AM EST
Dimitry K., Esq. and 6 other Legal Specialists are ready to help you
Customer: replied 7 years ago.
Did you get your money? Let me know if you didn't. My cc company sent me an alert for fraud when the charge tried to go through. I accepted the charge stating no fraud, so let me know if you don't get it by tomorrow and I will take care of it. I guess it's good they are watching my back. Just know that you will be compensated.

Thank you,
Jana Larson-Brock
Expert:  Dimitry K., Esq. replied 7 years ago.
Thank you for accepting my answer--yes, I did receive your 'acceptance'. There was no issue on my front.

Should you have any further questions, please do not hesitate to contact me directly. Start your questions "For Dimitry..." or "For Dimitry Alexander Kaplun..." and I will answer them as soon as notified that you are looking for me.

Good luck!
Customer: replied 7 years ago.
I will. Thank you and have a great evening!!