All technology companies and their investors start with great enthusiasm. Why else would you start a tech company? But in the life cycle of some companies, the enthusiasm – and the money – disappears before the company has achieved its goals and positioned itself for an attractive sale or IPO. In these instances, as the […]
Can Debtor Avoid Turning Over Assets to the Bankruptcy Trustee?
Let’s say “Jane” doesn’t see a lawyer in time to orderly dissolve the company, and now Big Bank and a few other creditors are coming after her. She hasn’t found a new full time job, and she’s coming to the end of her savings. Pretty soon she won’t be able to pay her credit card […]
Handling President’s Pay in Bankruptcy
Joe is the president and sole owner of a corporation. He invested a lot of money into the company. His accountant told him that he’d get better tax treatment and pay a lot less taxes if he considered the money a loan to the company and took his “compensation” in the form of loan repayments […]
Bankruptcy Your Only Option?
A business owner inquired whether he had to file bankruptcy for his corporation to avoid personal liability for the company’s debt, or whether there were other options to closing out the company. The company had few assets remaining, with a value of $20,000, and a tax debt for payroll taxes of $25,000, contributions due to […]
Customer File for Bankruptcy?
When You First Get the Notice To many a business owner there is nothing more frustrating than opening the morning’s mail to find that one of your best long time customers has filed bankruptcy, owing you a lot of money. Is there no hope for getting paid? Not necessarily. In this series of postings, we […]