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"Business Owner"
Question:
I am a manager of a Limited Liability Company (LLC). The LLC owned an apartment complex which was sold last year. I am now informed that there are some vendors with outstanding debt. A vendor sued the LLC, and the court awarded a judgment. Question 1: Since the LLC has no assets, can I [...]
Continue Reading →This fact comes as no surprise to this office; we represent many small business owners and franchise owners in bankruptcy and debt restructuring. Morningstar.com recently released an article cataloging some of the higher profile Restaurant bankruptcies and the underlying causes; The Casual Restaurant Bankruptcy Epidemic.
Bankruptcy can be an effective tool [...]
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Filing chapter 7 bankruptcy will eliminate my personal debt and personal liability on mortgages in my single member LLC’s name. However, if I leave my LLC as an empty shell with no assets and no cash, or if I dissolve it completely, what happens to a 2nd mortgage, for instance, that’s solely in the [...]
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My small business has severely fallen off during the last 12 months. I have an SBA Loan in the amount of $48,000 and credit card debt at $50,000. I want to close the business and start a new career. If I file bankruptcy on the business, can I include the credit card charges even [...]
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If I file a personal chapter 7 bankruptcy, what will happen to my LLC business if I guaranteed a Line of Credit [LOC] for the business? If the business is into the LOC for $35K, will the bank foreclose on the business?
Answer:
Do yourself a favor and go talk to 3 bankruptcy attorneys [...]
Continue Reading →Question:
If I file a personal chapter 7 bankruptcy, what will happen to my LLC (Limited Liability Company) business if I guaranteed a LOC (Line of Credit) for the business? If the business is into the LOC for $35K, will the bank foreclose on the business?
Answer:
The first question is whether you intend to [...]
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What is the general strategy an attorney would take for handling a failed business and a business owner bankruptcy?
Answer:
Have the Client wrap-up the business and then file a personal bankruptcy listing all personal and business debts and listing any potential claims that are even remotely fathomable against the business and [...]
Question:
When should a Chapter 7 bankruptcy filing for a business be considered?
Answer:
It is important to note that a corporation cannot discharge debts in a Chapter 7 bankruptcy. Therefore the general strategy with a failed company and Client who has too much debt is to wrap-up the corporation and then file [...]
Question:
Here is an interesting question that affects, I assume, a growing number of (previously) high-income bankruptcy filers: What do you do if your secured and/or unsecured debts exceed Chapter 13 limits, but your income exceeds the Means Test for Chapter 7? Earnings from my business have been within Means Test limits for [...]
A lot of small business owners are caught in a trap. They financed their business with personal credit cards and other personal loans and now those loans require that the owner distribute company cash to themselves instead of reinvesting in their business.
Constant distribution of the cash capital sucks the life out of the [...]
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