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Fri 26 Oct, 2007 01:10 pm
This could be long
.We spoke with a lawyer and he suggested we close our doors. The business - a franchise - wasn't earning enough to cover the expenses. And to put salt on the wound, my hubby's manager went psycho last week and walked out on him. My hubby had to close early as he didn't have enough people to work and then this "manager" showed up when my hubby wasn't there and bad mouthed my hubby to the workers. Under the circumstances, the lawyer suggested the best thing was to close our doors. So we did. We now have to file bankruptcy - fortunately as it is a business, there are some positives.
Unfortunately as a small business we needed to personally guarantee our loan. So when we file, the creditors will take all our money and cars. We now have the pleasure of spending $20k on normal expenditures. Since we are relocating next year, our lawyer said it is fine to fix up our condo - man it will be looking nice when we are done. He is also looking at a unique way of filing that I could possibly keep my car.
Back to the "manager"
he found out about the closing probably from another employee. My hubby only had the opportunity to call those that were supposed to work that day and hadn't yet contacted the others. This "manager" called them and again bad mouthed him and filled them in on their rights. He even wrote my hubby a nasty email - it was pretty bad. This "manager" has filed for unemployment (which he can't technically do because he quit the week before) so my hubby is reporting that.
Now come to find out that there is a class action lawsuit in our state about this franchise. One franchise owner committed suicide over his business. It seems the model is not set up to work. Now this was once considered a top franchise and the likes of doctors and lawyers have failed in this business. The fee is $2,000. Hubby feels he has had enough of this and wants to take our losses and simply leave. Can we use our money to pay for this lawsuit? Is it even worth it?
Linkat--
I hope formally unraveling the mess is easier than deciding what to do.
I'm no help legally, but you have my sympathy.
Hold your dominion.
Is this the same business from this other topic on bankruptcy you started a few months ago? Did any of the advice offered then get followed to protect yourselves?
Considering the current real estate market and properties that are rapidly losing value regardless of improvements made to them, you might want to rethink investing a large chunk of your money into fixing up a place you intend to vacate in a few months.
When the manager walked out, was termination paperwork processed to sever the connection?
Regarding the class action suit and spending money to join it, check with the attorney that is advising you.
Contact the small business association in your state to see if there is any assistance they can provide to help you through the transition.
No words of advice, but I am sorry Linkat...I'll be reading along.
Yeah, what Chai said. This was the sub shop thing, right? Damn, that sucks.
Wow, Linkat, that's awful!
I hope your lawyer can guide you along the best path out of this.
Good luck!
Noddy24 wrote:Linkat--
I hope formally unraveling the mess is easier than deciding what to do.
I'm no help legally, but you have my sympathy.
Hold your dominion.
I think it is. It seems that now we made the decision, I am sleeping better and just getting what needs to be done - done.
Butrflynet wrote:Is this the same business from this other topic on bankruptcy you started a few months ago? Did any of the advice offered then get followed to protect yourselves?
Considering the current real estate market and properties that are rapidly losing value regardless of improvements made to them, you might want to rethink investing a large chunk of your money into fixing up a place you intend to vacate in a few months.
When the manager walked out, was termination paperwork processed to sever the connection?
Regarding the class action suit and spending money to join it, check with the attorney that is advising you.
Contact the small business association in your state to see if there is any assistance they can provide to help you through the transition.
Well if we don't spend the money, then the creditors will simply take it. Since it is reasonable for us to spend the money to fix the place up as we will be selling, our lawyer suggested we use the money for that.
I would ask the lawyer about the class action suit, but not sure my husband really even wants to bother.
kickycan wrote:Yeah, what Chai said. This was the sub shop thing, right? Damn, that sucks.
Yep it was.
Well the good news is - we will be relocating to somewhere cheaper to live. I will be getting a 6 month bonus check next year and we will (hopefully if everything goes right) be able to buy a nice home when we move.
George wrote:Wow, Linkat, that's awful!
I hope your lawyer can guide you along the best path out of this.
Good luck!
Thank you - kind of entertaining any way.
I hope next year (after the move and getting settled) is significantly less exciting and significantly more boring than this year.
Sure hope you'll be able to look back on this and call it "educational".
Just from a few conversations, most states allow the debtor to keep the principal home and a car.
Linkat wrote:George wrote:Wow, Linkat, that's awful!
I hope your lawyer can guide you along the best path out of this.
Good luck!
Thank you - kind of entertaining any way.
I hope next year (after the move and getting settled) is significantly less exciting and significantly more boring than this year.
Yeah, a little boredom would probably go down well right now.
Forsan et haec olim meminisse iuvabit.
roger wrote:Sure hope you'll be able to look back on this and call it "educational".
Just from a few conversations, most states allow the debtor to keep the principal home and a car.
We can keep the home and any equity of the home. But the car is a different manner. The unusual filing the lawyer was considering was to file me with federal bankrupcy and hubby separate in state. That way we could keep my car at least (it is valued less). The state would save the home and the federal would save my car. He just isn't sure if he can do that - he is looking into it.
We have already learned from this. As my husband said - he has become much more patient, and appreciates all of us much more. We learn what is most important - our family and time we can spend together - we were haven't been able to since he opened the business.
As an aside - the few franchises which we know the owners that are so called successful - the owners are still working 7 days a week and are not making much more than what covers their costs. Some will be earning some decent money once their loans are paid off, but it is hard work with little reward.
Almost makes me appreciate life in Cubeville.
my sympathies linkat... **** things do happen to good people... everday.
work the system as hard as you can and come out with as much of your skin as possible then move on. the past is the past... only today counts.
Whoa -- sympathies and omming and you know.
Man, that all sucks. Good luck on the car thing, I hope that works out. Man.
Geez, Linkat... sorry to hear that. No advice to give, I'm not up on american law and whatnot, but thank goodness you have such a great attitude about it. That's what's most important, after all, isn't it?
Re: Sad news - we shut our doors/bankrupt/lawsuit
Linkat wrote:This could be long
.We spoke with a lawyer and he suggested we close our doors. The business - a franchise - wasn't earning enough to cover the expenses. And to put salt on the wound, my hubby's manager went psycho last week and walked out on him. My hubby had to close early as he didn't have enough people to work and then this "manager" showed up when my hubby wasn't there and bad mouthed my hubby to the workers. Under the circumstances, the lawyer suggested the best thing was to close our doors. So we did. We now have to file bankruptcy - fortunately as it is a business, there are some positives.
Unfortunately as a small business we needed to personally guarantee our loan. So when we file, the creditors will take all our money and cars. We now have the pleasure of spending $20k on normal expenditures. Since we are relocating next year, our lawyer said it is fine to fix up our condo - man it will be looking nice when we are done. He is also looking at a unique way of filing that I could possibly keep my car.
Back to the "manager"
he found out about the closing probably from another employee. My hubby only had the opportunity to call those that were supposed to work that day and hadn't yet contacted the others. This "manager" called them and again bad mouthed him and filled them in on their rights. He even wrote my hubby a nasty email - it was pretty bad. This "manager" has filed for unemployment (which he can't technically do because he quit the week before) so my hubby is reporting that.
Now come to find out that there is a class action lawsuit in our state about this franchise. One franchise owner committed suicide over his business. It seems the model is not set up to work. Now this was once considered a top franchise and the likes of doctors and lawyers have failed in this business. The fee is $2,000. Hubby feels he has had enough of this and wants to take our losses and simply leave. Can we use our money to pay for this lawsuit? Is it even worth it?
What about the employees in this business?
Are they able to collect all their owed wages & any other benefits owing to them? Sadly, too often they receive a raw deal in such circumstances.
Re: Sad news - we shut our doors/bankrupt/lawsuit
msolga wrote:
What about the employees in this business?
Are they able to collect all their owed wages & any other benefits owing to them? Sadly, too often they receive a raw deal in such circumstances.
Don't worry about the employees - we always made sure that there was enough money to pay them - we sacrificed paying other bills.
Also (not that this mattered to us), it would be a criminal act not to fully pay them.
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