Business Debt Personal Liability Eliminated

Apr 19, 2016

Our client, a small business owner in Salem, MA, was the sole shareholder of a corporation. The corporation owed substantial trade debt as well as tax liabilities to the Massachusetts Department of Revenue for unpaid taxes for which the client had been determined to be individually responsible. The business, a restaurant, had only one significant remaining asset, a liquor license, which was about to be revoked by the City in which the restaurant was located. We filed a Chapter 7 Bankruptcy for the Corporation in order to allow the liquor license to be auctioned by the corporation’s Chapter 7 Trustee. This in turn generated funds which, by operation of the priority scheme of the Bankruptcy Code, were paid by the Trustee to the Massachusetts Department of Revenue ahead of the corporation’s other creditors. This payment in turn reduced the Client’s personal liability for these “trustee” taxes, which he was then able to manage in a subsequent personal Chapter 13 case filed by our office on his behalf.

RESULT : The Client was able to obtain a fresh start by eliminating all business debt personal liability, credit card debt and tax liabilities to the Massachusetts Department of Revenue by a combination of a Chapter 7 bankruptcy for his small business and an individual Chapter 13 bankruptcy filing.

By Andrew Evans 07 Aug, 2022
And what about the Ghost in the Basement? The Bottom Line is Just Don't Lie.
By Evans & Evans, P.C. 07 Aug, 2022
More small businesses and consumers can benefit from reorganizations
Protect Your Assets
21 Sep, 2021
Protect your assets from Creditors and Nursing Home Costs
By aevans 18 Apr, 2020
IF YOU FIND YOURSELF IN A FINANCIAL HOLE, THE FIRST THING TO DO IS STOP DIGGING – AND THEN CALL AN EXPERIENCED MASSACHUSETTS BANKRUPTCY ATTORNEY If you are a Massachusetts Bankruptcy filer, or just thinking about filing bankruptcy to deal with your mortgage, credit card, tax, student loan or other debts. The first and most [..] The post Massachusetts Bankruptcy Attorney appeared first on Evans & Evans, P.C..
By aevans 01 Apr, 2020
  Can’t pay your mortgage or rent?  What Now?     You can’t pay your mortgage or rent. What now? Coronavirus is right here in Peabody and the rest of the North Shore, now and for the forseeable future. Many individuals and families are understandably worried about paying the rent or mortgage. IF YOU ARE [..] The post Can’t pay your mortgage or rent? Coronavirus help appeared first on Evans & Evans, P.C..
By aevans 27 Mar, 2020
Congress has acted to help struggling North Shore and Greater Boston families and businesses filing – or thinking about – bankruptcy.   There are some important changes to the Bankruptcy Code contained in the Coronavirus relief package recently passed by the Senate. The bill is expected to passed by the House and signed into law [..] The post Congress acts to help struggling families and businesses filing Bankruptcy appeared first on Evans & Evans, P.C..
By aevans 25 Mar, 2020
Is the Coronavirus Pandemic going to force me or my business to file Bankruptcy?   Coronavirus and Your Debt: Unfortunately, many Peabody and North Shore families and businesses are wrestling with that question right now. Hopefully you and your loved ones and friends are all (and will remain) healthy. By now, you (or your employer [..] The post Coronavirus and Bankruptcy – Massdebtlaw appeared first on Evans & Evans, P.C..
By aevans 09 Jun, 2016
More Americans will soon be looking for Credit Card Debt help. Credit card debt held by the average American consumer is growing to unsustainable levels, leading some to speculate that consumer bankruptcy filings will soon be on the rise. According to a recent report issued by CardHub, outstanding Credit Card Debt held by U.S. consumers [..] The post Credit Card Debt On the Rise appeared first on Evans & Evans, P.C..
By aevans 19 Apr, 2016
Client’s Andover, MA home had been auctioned at foreclosure sale while clients were in the process of attempting to obtain a loan modification from their mortgage company. Client also had substantial credit card debt, tax debt and medical bills. We immediately filed a Chapter 13 bankruptcy case on behalf of the client and filed a [..] The post Chapter 13 bankruptcy saves client’s home in Andover, MA appeared first on Evans & Evans, P.C..
By aevans 19 Apr, 2016
Client came to us two days before foreclosure auction on his home in Newburyport, MA. Client had fallen behind on mortgage and credit card payments after having been laid off 18 months earlier. Client had been unsuccessful in obtaining loan modification due to lack of income. We filed a chapter 13 bankruptcy on behalf of [..] The post Chapter 13 to Chapter 7 Bankruptcy Provides Fresh Start appeared first on Evans & Evans, P.C..
More Posts
Share by: