My Business Failed. What Happens to the Debts?

MY BUSINESS FAILED. AM I LIABLE FOR ALL OF MY ONLINE MARKETING COSTS?

A question which frequently arises with clients who have been involved with running their own business is what happens to my debts if  the business fails?  The largest investment for a service oriented business is usually online marketing costs.   If you have signed long term contracts for business marketing, it is likely that you are personally liable for this debt if the business is a start-up with no credit history.   In many states, attorneys are personally liable for the debts of their firm regardless of whether the firm is a partnership, LLP, LLC, corporation, etc.

The good news is that more often than not, long term contracts for business marketing can be discharged in bankruptcy case filings just like any other personal loan, personal credit card, pay day loan, medical bill, etc.
You may want to consider closing the business with your state's Secretary of State Office so that the business entity (if an LLC, corporation, partnership, etc) cannot be sued as a separate entity responsible as a co-debtor.


Kevin Ryan is an attorney who practices bankruptcy law in Mobile and Baldwin Counties, in south Alabama.  Call for a free case evaluation at 251-431-6012

http://www.wkyt.com/news/headlines/Consumer-Alert-Debt-collection-scheme-steals-millions-179371101.html?ref=101

Election 2012:  Expect more bankruptcy filings as employers react to prospect of more regulation, higher taxes, inflation and Obamacare.  

As we approach the start of 2013, bankruptcy attorneys anticipate an avalanche of new bankruptcy filings as more people enter the sphere of unemployment, many for the first time in their lives. Although many large corporations may not actually lay off workers, they will, however reduce hours to avoid upcoming Obamacare rules and regulations for employers of more than 50 workers.   Reduced hours, of course, means less income.  More people will be unable to pay all of their bills. To add insult to injury, expect that utility and food costs will continue to rise as the regulatory aparatus stomps the landscape, virtually unchecked (currently none of the millions of provisions in the Code of Federal Regulations are subject to a sunset provision requiring Congressional review and renewal).  For the self-employed, expect healthcare costs to rise, especially for your private healthcare insurance policy.  Employers are also expected to require workers to contribute more to company plans.   Government workers, until now a protected class in the economic downturn of the past 4-5 years, will inevitably suffer the same reductions in hours, earnings, and benefits as the private sector.    The "fiscal cliff" that everyone on the news is obsessing about will cause an automatic increase in taxes for the middle class.  

Getting rid of the burden of consumer debt with a bankruptcy filing offers many the opportunity to take control of their financial lives, rather than being a victim of higher taxes and inflated prices on necessities.  Times are not going to get better for us in the middle class in the foreseeable future.  For many, the only option will be bankruptcy, and a paring away of the burden of credit card, medical and other unsecured debt.

REAL ESTATE SALES

Kevin Ryan is now affiliated with the Howard Hanna Real Estate Sales Office in North Olmsted, Ohio.  If you are thinking about selling your home, or if you are current in default on your mortgage payments and would like to discuss a Short Sale listing of the property, please contact Kevin at (440) 610-0972 (cell)  or (440) 327-3800 (office).

web site address for the Chapter 13 Trustee (Cleveland District)

The web site address for the Chapter 13 Trustee for the
U.S. Bankruptcy Court, Northern District of Ohio Cleveland  Division is

www.13trusteecleveland.com

there is helpful information posted at this site.   Don't forget to sign up for online
case access if you are currently a Chapter 13 debtor with an open case.   You
can track all of your payments, claims history, and other information relevant
to your case.  Contact your attorney if you have any questions.

New office location for Ryan Legal Services, Inc.

We are opening a new satellite office at 26777 Lorain Road, Suite 608, North Olmsted, Ohio.  This is a small office that is next to the Great Northern Mall and St. Richard's Catholic Church.  Our hope is to attract clients from North Olmsted, Olmsted Falls, Olmsted Township, and Fairview Park,  cities that are currently under-served by bankruptcy attorneys.   Please note that this is an office for client meetings only, so please call us at 440-327-3800 to schedule an appointment.  

Mistake : Transferring property prior to filing bankruptcy. Don't do it!

Transferring property before bankruptcy is risky business!

by Pamela Stewart, Attorney at Law · Posted in *Bankruptcy Basics,*Filing for Bankruptcy

Lately, a number of clients coming to see me have just transferred real property (or their interest in real property) to a family member or friend, or they are inquiring about transferring their property to a family member or friend – and, of course, for no money in return.  AND, they want to file bankruptcy ASAP.  Bad decisions and bad ideas! Bankruptcy law has several provisions that penalize a transfer made with the intent to hinder, delay, or defraud creditors.   Any transfers made within two years of filing bankruptcy (and in some instances – further back than that) the bankruptcy trustee can undo those tranfers pursuant to his avoidance powers under Section 548 of the Bankruptcy Code. 

I recently turned down filing a case for a potential client who, after several months of being laid off from work and no foreseeable job offer coming, decided to transfer a second parcel of land (approximately 20 acres) – not his homestead to his son.  He wanted to protect his land from his creditors.  Unfortunately, this is considered a fraudulent transfer and the trustee could undo the transfer.  He, of course, was sick to learn that his actions had only made matters worse for him since he is unable to file aChapter 7 bankruptcy now and keep his land.   

If you are thinking about filing for bankruptcy and are thinking about transferring or giving property of any value to someone else, PLEASE talk to a bankruptcy attorney before you take that action.