former business associate is planning on filing bankruptcy. the problem is when he did pay his subs , all cash, no checks. he has no checking account, credit cards, property or even vehicles in his own name, only thing he has is about 400k in outstanding debt. how is the bankruptcy court going to handle that mess or will the trustee kick it out? No records of any kind, only outstanding bills and or judgements.
Legal question.....
- Thread starter RAZ
- Start date
Raz,
...right now I'm studying to take my bankruptcy exam on thursday, but i'm not sure that i understand your question. are you asking about your personal liability with regard to your past business association?
...do you know what chapter he is filing? 7, 11 or 13?
...right now I'm studying to take my bankruptcy exam on thursday, but i'm not sure that i understand your question. are you asking about your personal liability with regard to your past business association?
...do you know what chapter he is filing? 7, 11 or 13?
Raz:
Not my area. Have a little knowledge, and you know what that means. Tao is right, is it total discharge he seeks or reorganization and repayment over time (7,11,13)
The dischargability of each of his debts depends on the type of debt (ie. secured/unsecured, etc.) and how the debt was incurred (tax, salary, alimony, child support, judgments based on intentional or negligent conduct, contractual obligations etc.).
If the debt is primarily contractual obligations, it will probably be discharged. Another issue is whether he is filing individually or on behalf of the corporation (or both). Not sure if the fact that he left no paper trail will matter much to the bk judge.
If he owes subs for work on jobs, they may be able to file mechanics lien against property owner. Check your state law. Basically, after he files, creditors will have an opportunity to question the debtor re his assets.
Hope that helps. Again, this aint my area. Proceed with caution.
Ed
Not my area. Have a little knowledge, and you know what that means. Tao is right, is it total discharge he seeks or reorganization and repayment over time (7,11,13)
The dischargability of each of his debts depends on the type of debt (ie. secured/unsecured, etc.) and how the debt was incurred (tax, salary, alimony, child support, judgments based on intentional or negligent conduct, contractual obligations etc.).
If the debt is primarily contractual obligations, it will probably be discharged. Another issue is whether he is filing individually or on behalf of the corporation (or both). Not sure if the fact that he left no paper trail will matter much to the bk judge.
If he owes subs for work on jobs, they may be able to file mechanics lien against property owner. Check your state law. Basically, after he files, creditors will have an opportunity to question the debtor re his assets.
Hope that helps. Again, this aint my area. Proceed with caution.
Ed
Thanks guys, taoist sent you off an eamil, sham i asked jack for yours or to forward mine to you.
raz, while bankruptcy is not my area either, your former friend will in all likelihood get the protection of the bankrupcy court, even if there are no records, so long as no one proves that he is perpetrating a fraud, that is, that he actually has assets but is concealing them from the court and his creditors.
