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  1. #1
    Join Date
    Nov 2006
    Posts
    4

    Default Bankruptcy of a Family Business

    My brother in law filed on the family business.
    He is the major stock holder.
    The only people he owes is his brother (my husband) and the IRS for P&I on trust taxes.
    He is lying about the company assets, to make this short,
    the company purchased land to start the business on,
    he put it in his wife and his name only.
    I can prove other, with the company books, corporate 1120 returns and SBT returns, since 1973.
    Would the trustee talk to us beings we have a UCC lein filed on the business?
    I know the IRS takes presidence.
    This is a sticky mess.
    HELP please.

  2. #2
    Join Date
    Nov 2006
    Location
    Texas
    Posts
    354

    Default Re: business bankruptcy question, HELP !!

    If you have a lien, then you would be a creditor of the bankruptcy estate. Did the business file Chapter 7 or Chapter 11? Chapter 7 is a liquidation and Chapter 11 is a reorganization. In either case the court will appoint a Trustee to liquidate some or all of the assets and make distributions to creditors who timely file a proof of claim form. If any inappropriate assets transfers were made to your brother-in-law and/or his wife by the bankruptcy business in the months preceding the filing, the trustee may bring suit to recover such assets for creditor distribution. You can obtain a proof of claim form from the bankrupty court. But, if you feel there is "funny business" going on, I would recommend you arrange a consultation with a qualified commercial bankruptcy attorney in your area who can file motions with the court concerning any valid concerns you may have.

  3. #3
    Join Date
    Nov 2006
    Posts
    4

    Default Re: business bankruptcy question, HELP !!

    No transfered have happened for 3 years.
    He transfered 4 acres to my husband,
    then transfered 12 to his and his wife's trust.
    But I can prove the company rightfully owned it.
    He filed chapter 7.
    He only owes to my husband and I, and the IRS.
    He more or less threated to file if I didn't pay him more money.
    He retired from the business 3 years ago.

  4. #4
    Join Date
    Nov 2006
    Location
    Texas
    Posts
    354

    Default Re: business bankruptcy question, HELP !!

    You say this is a family business? Your brother-in-law, the major stockowner, is retired from the business? So, are you and your husband currently running the business? Is it your source of income? Is the problem that your brother-in-law wants you or the business to buy the land from him? Is the business otherwise making money and paying all of its creditors? Without knowing all of the facts, it sounds like your brother-in-law just wants his money out of the land....and I can't blame him for that if he's not earning anything from the business anymore. Can the business get a loan to buy the brother-in-law out?

  5. #5
    Join Date
    Nov 2006
    Posts
    4

    Default Re: business bankruptcy question, HELP !!

    Yes, The BIL is the major stock holder who retired due to ill health.
    Received pay up till this past April.
    My husband and I have worked there to pay all the company debts
    thinking we were equal shareholders.
    News to us,
    we never were.
    What BIL wants,
    is to walk away with the only asset of any value,
    us eat our money we have invested in business.
    Hubby is 66, we need to work there to make our house payment
    that the business owes us from consolidating all their debts.
    BIL does not want to sell the business.
    He wants all or nothing attitude.
    But I digress,
    Is the land a company asset?
    Shouldn't he have to include that in his bankruptcy even though it's in his and his wife's name and not the company?
    All company records for 30 years show it's an asset,
    along with the payment from the company.

  6. #6
    Join Date
    Nov 2006
    Location
    Texas
    Posts
    354

    Default Re: business bankruptcy question, HELP !!

    okay...now we're getting somewhere. Even though the land is in BIL's name, the company records show it as an asset of the business? and have shown that for 30 years? Did BIL do that or did someone else prepare the books? Something doesn't smell right.

    I am a legal secretary/assistant and have worked with both consumer and business bankruptcy attorneys for 18 years. You need to retain (or at least arrange an initial consultation) with a bankruptcy attorney tomorrow. You need one that is experienced in business bankruptcy and creditor representation. I'm not sure you can save the business, but you may be able to file your proof of claim for an amount owed to you that includes all or most of your investment in the business. What city/state are you in?

  7. #7
    Join Date
    Nov 2006
    Posts
    4

    Default Re: Bankruptcy of a Family Business

    Live in Michigan.
    The BIL put the land in his name when it was purchased back when.
    In his world,
    He feels he started the business,
    He ownes the business,
    He ownes the assets,
    and round is a good shape.
    Hubby and I didn't want this fight,
    but will be hanged I have to sell my house because of someone else's greed.
    Does the IRS compromise on P&I when the taxes are paid?
    Found a good BK attorney in Grand Rapids.
    He is trying to stop the BK as we speak.
    Cross fingers and toes for good measure.

  8. #8
    Join Date
    Nov 2006
    Location
    Texas
    Posts
    354

    Default Re: Bankruptcy of a Family Business

    Good Luck!

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