In California, a corporation is deemed to be a “person.” [Cal. Corp. Code Sec. 28043]. It has most of the same rights as does a “natural person” (a human being rather than an artificial entity such as a corporation or LLC), including the rights to incur liabilities, borrow or lend money, or carry on a …
If you own a business that runs into financial difficulty, and faces shutting down while owing quite a bit of money, you may wonder if you are liable for the debts of the business. Here are some of the circumstances under which you are, or could be liable. NO SEPARATE ENTITY. If your business is …
ARE YOU PERSONALLY LIABLE FOR YOUR COMPANY’S DEBTS? Read More »
When anyone files a bankruptcy, an “Automatic Stay” goes into effect. This stops most types of legal action against or attempts to collect a debt from the debtor (the person or entity that filed the bankruptcy). A lawsuit cannot be started or continued. Foreclosures on the debtor’s real estate are stopped. Eviction proceedings are generally …
There are 2 ways that a bankruptcy proceeding can end – with a DISCHARGE or a DISMISSAL. Since these two terms are similar, they are often confused. A DISCHARGE is a court order prohibiting further attempts to collect debts. This is goal that most people filing bankruptcy are seeking. It usually means that the bankruptcy …
In a foreclosure, a secured creditor takes ownership of, or sells, the collateral securing the loan, usually because of a default in payments on the loan. The most typical example is where a borrower fails to make mortgage payments on a home, and the bank, or other lender, takes possession of the property. As of …
A JUDGMENT is a final court order determining the rights and obligations of the parties to a lawsuit. Typically, it is an order establishing that one party (usually the plaintiff) is owed a certain amount of money by the other (usually the defendant), and is entitled to use any legal means to collect the judgment. …
WHAT IS “INCLUDED” IN A BANKRUPTCY? I am frequently asked if a particular debt or item of property can or must be “included” in a bankruptcy. For example, if one wants to repay their mother or sister, do one have to list that debt? Or, does one have to list a particular item of property? …
WHERE NOT TO KEEP A CHECKING ACCOUNT If you are falling behind on your credit card payments, don’t keep a checking account with the same bank you owe money to. Reason: the bank could take money directly from your checking account to cover the payments to your credit card. Example: if you are two payments …
Written agreements form the backbone of our financial and economic system. Most business owners would not dream of forming a partnership without a written agreement. Most employers would not consider hiring someone without a written employment contract. Buying or selling a house without a written contract is out of the question. And yet there is …
PREMARITAL, POSTMARITAL AND NONMARITAL AGREEMENTS Read More »
“Exempt” means free from, or not subject to an obligation; or excused. Exempt property is that which a person is entitled to keep, either in the event of collection efforts from a creditor with a judgment, or in a bankruptcy. What property is exempt depends mostly on the laws of the state in which you …
