What is the name of your state? Georgia
My friend's business is out of money. They have been in manufacturing for 10 years. One of their vendors recently filed bankruptcy on them for $200,000 and this wiped out their savings because 1. They didn't get the merchandise they paid for. 2. They had to purchase this merchandise at a higher price from someone else. They hired an attorney and tried to stop the bankruptcy based on fraud. They lost because the company was incorporated and it couldn't be proved that he benfited personally.
Fast forward 1.5 years and the manufacturing industry has slowed drastically. They have fallen behind on all their payments. The owe vendors just over $150,000. One has filed a judgement against them in court and many others are threatening legal action. They are an "S" corporation. They tried to make small monthly payments to each vendor but are no longer able to do so. What can these vendors to to them if they do NOT file bankruptcy? The only property in the business name is equipment and two old company trucks. Everything is financed through banks to the max and then some.
In addition, they are making payments to the IRS for back taxes, the Georgia Department of Labor for back taxes, and they owe the Georgia Department of Revenue but have been unable to get in touch with someone there to work with them on the HUGE penalties. They sent them a certified letter asking them to please respond over 4 month's ago and nothing has been received.
All the employees have been laid off and only small orders are coming in. They keep hoping things will pick up where they can get caught up on their payables.
What we are wondering is what can happen to them if they don't file bankruptcy? Can they be arrested for anything? Can the doors be padlocked? Can equipment be removed? They honestly don't know and would just like to know what options are available.
Thanks in advance to anyone that can help.
My friend's business is out of money. They have been in manufacturing for 10 years. One of their vendors recently filed bankruptcy on them for $200,000 and this wiped out their savings because 1. They didn't get the merchandise they paid for. 2. They had to purchase this merchandise at a higher price from someone else. They hired an attorney and tried to stop the bankruptcy based on fraud. They lost because the company was incorporated and it couldn't be proved that he benfited personally.
Fast forward 1.5 years and the manufacturing industry has slowed drastically. They have fallen behind on all their payments. The owe vendors just over $150,000. One has filed a judgement against them in court and many others are threatening legal action. They are an "S" corporation. They tried to make small monthly payments to each vendor but are no longer able to do so. What can these vendors to to them if they do NOT file bankruptcy? The only property in the business name is equipment and two old company trucks. Everything is financed through banks to the max and then some.
In addition, they are making payments to the IRS for back taxes, the Georgia Department of Labor for back taxes, and they owe the Georgia Department of Revenue but have been unable to get in touch with someone there to work with them on the HUGE penalties. They sent them a certified letter asking them to please respond over 4 month's ago and nothing has been received.
All the employees have been laid off and only small orders are coming in. They keep hoping things will pick up where they can get caught up on their payables.
What we are wondering is what can happen to them if they don't file bankruptcy? Can they be arrested for anything? Can the doors be padlocked? Can equipment be removed? They honestly don't know and would just like to know what options are available.
Thanks in advance to anyone that can help.