Category Archives: FAQs
Many people form corporations or LLC’s to insulate themselves from personal exposure if things go wrong inside the business. If the entity has not observed and complied with all of the ongoing formalities required under law for that type of entity, that is the ammunition that creditors can use to break through the protective… Read More »
The basic types of business ownership are partnerships, corporations or LLC’s, or sole proprietorships. If you are starting a business with little liability exposure and no clear revenues, it may make sense to start as a sole proprietorship. You can still register and use a “trade name” (also known as a “fictitious name”). Once… Read More »
Yes. A Trustee is appointed in Chapter 12 to oversee distributions to creditors and to monitor the progress of the case, but control of the daily operations remains in the hands of the debtor/owner. The Trustee’s role is limited to financial oversight and compliance with the bankruptcy rules. Chapter 12 Debtors retain their autonomy… Read More »
See FAQ for Chapter 12 bankruptcy above
Yes you can file for bankruptcy, but you cannot discharge your obligations to produce growers through the bankruptcy. If you do not pay them in full, you will lose your PACA license.
A person in bankruptcy can sell property. However, the buyer must proceed with caution as the transaction must be authorized by the Bankruptcy Court Whenever you want to purchase property from an individual or company that is in a pending bankruptcy case, consult an experienced bankruptcy attorney.
I am a tenant to a five year commercial lease agreement with right of first refusal on option to purchase. My landlord wants to sell the property to a third party without providing me with the right of first refusal. Can I sue my landlord?
Parties to a contract must comply with the terms of the agreement. Whenever a party to a contract refuses to comply with the terms they have breached the agreement and there are remedies available to the non-breaching party.
I am a tenant to a five year commercial lease, can I vacate the property prior to the expiration of the lease term?
A tenant who vacates premises prior to the expiration of the lease term may be subject to a lawsuit and deficiency judgment for the remaining lease term. In order to determine the consequences of an early lease termination an experienced attorney must be consulted to review the terms of the agreement. Notwithstanding the lease… Read More »
Lenders determine on a case by case basis whether to waive any deficiency after a foreclosure. The benefit to a borrower to having a waiver of deficiency from the lender is the borrower is no longer obligated on the balance remaining on the debt after a foreclosure sale.
What is cash for keys and am I entitled to receive cash for keys in a foreclosure matter if I consent to a final judgment?
A lender will on a case by case basis give a borrower/homeowner whose property is being foreclosed on cash for the homeowner to consent to a foreclosure judgment and to vacate the property without destroying the property. This allows the lender to submit a consent final judgment to the court without the need to… Read More »