Beware of Successor Liability in Connection with Family Owned Business

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A corporation ordinarily is not liable for the debts of other entities or its owners in the absence of an express agreement, such as a guarantee. However, a creditor of one company may try to impose liability on one or more non-debtor entities under “alter ego” or “successor liability” theories in certain circumstances. In these …Read more

How to File a Claim in a Bankruptcy Case

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You just received notice that your customer who owes you money has filed bankruptcy. What should you do? Read the notice you receive from the court. Among other things, that notice will give you the deadline for filing a claim in the bankruptcy case. In a Chapter 7, 12 or 13 case, in order to receive …Read more

A Bankruptcy Trustee has contacted you demanding repayment of a preference – now what?

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If a customer of your business has entered bankruptcy proceedings, and you have obtained payment from that organization recently, you may receive a letter demanding “repayment of a preference” or “repayment of an unfair preference.” This article aims to shed light on this issue and help you understand your options. Often when a business gets …Read more

Is Filing Bankruptcy for My Business an Alternative?

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The economic downturn in the recent past hit many small and medium sized businesses very hard. Some have been able to hang on, but only because their creditors have been willing to work with them. Things are starting to turn around, but perhaps not quickly enough to satisfy creditors. If your creditors are getting impatient …Read more