How Will My Personal Bankruptcy Affect My Business?

bankruptcy

If you’re not running a sole proprietorship, lawsuits against your business aren’t automatically “stayed” by your personal bankruptcy filing. In most instances, a bankruptcy filing, through the power of the automatic stay, halts any lawsuit against you and your business or prevents a threatened lawsuit from being filed in court. But there are a few exceptions to this rule; situations in which the automatic stay would not apply. In these cases, a creditor’s lawsuit could continue in spite of your bankruptcy filing. Because stopping such a lawsuit is likely one of the reasons you’re filing bankruptcy, it’s extremely important to …

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Case Study: Bankruptcy encourages settlement of lawsuit

Encourage the settlement of business lawsuits

For the past 5 years, Ken has been operating Convenient Car Care as a sole proprietor. He bought the business from Gary after working for him for 10 years. The purchase contract required Ken to pay Gary $1,000 per month plus 5% of the shop’s gross receipts for 7 years. Ken also agreed to provide accurate monthly sales records to justify the 5% he was paying Gary. The business’ gross receipts took a big hit when another repair shop opened around the corner. Ken fell behind on his payments to Gary, who became angry fearing that he could lose the …

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Why You Should Hire A Lawyer To Protect Your Business

Hire a lawyer to protect your business

Having a lawyer on your team can play an integral role in the success of your company. However, most business owners do not seek counsel until they’ve been named in a lawsuit or are facing dire legal issues. Waiting for problems to occur before you hire a lawyer is risky – perhaps a risk you cannot afford. Click here to learn how a lawyer can support and protect your business at various stages.

My business has been sued in Philadelphia. What should I do?

Law button on keyboard

Business disputes are inevitable – and not every dispute can be resolved outside of the courtroom. Here’s what you need to know if you’ve been served with a lawsuit in Philadelphia: Call your lawyer. This is the first step you should take once you’re served with a lawsuit. Speak with your lawyer before you attempt to contact parties or witnesses, solicit advice from any non-lawyers, or respond to the legal action pro se. While it’s tempting to share your side of the story, refrain from discussing the issue with anyone other than your lawyer. Do not speak with the opposing party under …

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