Are you a struggling business owner? We receive many inquiries from business owners asking how personal bankruptcy filings can affect debt obligations and assets. Unfortunately, there are no clear-cut answers to this.
As a business owner, when you file for bankruptcy, there are legal considerations made between the various forms of debt you may have. While a personal bankruptcy may not discharge all business debts, it may allow an owner to discharge his or her personal obligations to pay a debt, depending upon an ownership model. As a sole business proprietor, you may not be held liable for all of your debt obligations, similarly to anyone else filing for bankruptcy.
Where things can become incredibly confusing is when people who are involved in business ventures, or those who may have corporate credit cards and loans, file for bankruptcy. If your business is operating as a separate legal entity like a partnership, corporation or limited liability company, receiving advice will help you with any questions you may have. Your business model will determine what the law can do in the event that you file for personal bankruptcy. If you are involved in a shared-model, you may be able to discharge your obligations by liquidating or dissolving your interest in a venture.
When you file for bankruptcy, as a business owner, you must include all business assets. In the event that you are a sole proprietor, a trustee may liquidate your business assets as a way to pay off your debt obligations. For some people, this is a great way to get rid of debt obligations. For others, this may be a hard pill to swallow.
Former Texas Business Owner Fights to Keep Possession of a Facebook Page
We bring up this subject because recently we read a story out of Katy that caught our attention. According to MyFoxHouston, a man is fighting to keep possession of a Facebook page, defying a bankruptcy judge’s order that he turn over the account.
The news outlet reported that Jeremy Alcede, the former owner of Tactical Firearms, lost his business to a partner in December 2014 following a bankruptcy filing. The business has since been renamed Boyert Shooting Center. At the time of his filing, the Tactical Firearms page had more than 10,000 followers, with Alcede saying they were attracted to the page due to his outspoken, conservative posts, according to MyFoxHouston.
The new owners of the business say that the Facebook page is a valuable asset that they are entitled to, while Alcede is refusing to give up ownership of the account. “I am prepared to go to jail over a violation of my First Amendment rights,” Alcede said, according to the news outlet.
Speaking to an Attorney about Bankruptcy
If you are a struggling business owner, a bankruptcy attorney may be able to assist you. As this case shows, the law can be incredibly confusing and complex to navigate without assistance.
Julian, Crowder & Shuster, P.C. – Lewisville Bankruptcy Attorneys