PROFESSIONAL AND BUSINESS OWNER BOTH SEEK BANKRUPTCY PROTECTION（ PART2 ）
楊清泉律師事務所
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THE BUSINESSOWNER
Client owns 3 large buses that she uses to bring tourists around sightseeing in California. She has a partner who invested $150,000. She signed a promissory note to pay the partner interest of 10% a month. After paying interest of $180,000 for a period of 12 months, she stopped paying saying that the business was no longer profitable because of competition. Partner sues her for $500,000 for breach of contract and fraud. She files a Chapter 13 to save her house from foreclosure because she has not paid the house for 8 months. The partner files an adversary case to have the $500,000 claim deemed non-dischargeable on the ground of fraud. At trial, we are able to establish by more than a preponderance of evidence that there was no fraud. The truth was that the business was profitable initially but started to lose money on the 8th month because of increased competition. Court orders that there is no fraud and that partner’s claim is at most $150,000 to be treated as a general unsecured debt. Under the Chapter 13 plan, unsecured debt gets paid nothing. So, debtor is happy with her plan payment that saves her house from foreclosure but pays partner nothing.
In addition, all 3 buses are returned to the secured creditors, and the return deficiency of $80,000 is also considered as general unsecured debt. Client does not have to pay the $80,000 either.
Whatever the cause of your financial problems, Chapter 7 or 13 will help you get a fresh start or reorganize your financial affairs to your benefit.
“The LORD takes pleasure in those who fear him, in those who hope in his steadfast love.” Psalm 147:11.
Lawrence Bautista Yang is a graduate of Georgetown University Law Center and has been in law practice for thirty years. He specializes in bankruptcy, business and civil litigation and has handled more than five thousand successful bankruptcy cases in California. He speaks Mandarin and Fujien and looks forward to discussing your case with you personally. Please call (626) 284-1142 for an appointment at 1000 S Fremont Ave, Mailstop 58, Bldg A-1 Suite 1125, Alhambra, CA 91803.
THE BUSINESSOWNER
Client owns 3 large buses that she uses to bring tourists around sightseeing in California. She has a partner who invested $150,000. She signed a promissory note to pay the partner interest of 10% a month. After paying interest of $180,000 for a period of 12 months, she stopped paying saying that the business was no longer profitable because of competition. Partner sues her for $500,000 for breach of contract and fraud. She files a Chapter 13 to save her house from foreclosure because she has not paid the house for 8 months. The partner files an adversary case to have the $500,000 claim deemed non-dischargeable on the ground of fraud. At trial, we are able to establish by more than a preponderance of evidence that there was no fraud. The truth was that the business was profitable initially but started to lose money on the 8th month because of increased competition. Court orders that there is no fraud and that partner’s claim is at most $150,000 to be treated as a general unsecured debt. Under the Chapter 13 plan, unsecured debt gets paid nothing. So, debtor is happy with her plan payment that saves her house from foreclosure but pays partner nothing.
In addition, all 3 buses are returned to the secured creditors, and the return deficiency of $80,000 is also considered as general unsecured debt. Client does not have to pay the $80,000 either.
Whatever the cause of your financial problems, Chapter 7 or 13 will help you get a fresh start or reorganize your financial affairs to your benefit.
“The LORD takes pleasure in those who fear him, in those who hope in his steadfast love.” Psalm 147:11.
Lawrence Bautista Yang is a graduate of Georgetown University Law Center and has been in law practice for thirty years. He specializes in bankruptcy, business and civil litigation and has handled more than five thousand successful bankruptcy cases in California. He speaks Mandarin and Fujien and looks forward to discussing your case with you personally. Please call (626) 284-1142 for an appointment at 1000 S Fremont Ave, Mailstop 58, Bldg A-1 Suite 1125, Alhambra, CA 91803.
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