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Bankruptcy Law/Chapter 13-can they claim this

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Question
QUESTION: I am checking into this for my father. He has a small business Commercial Refrigeration business that he recently did some work on a Restaurant's walk in cooler. They have now filed a Chapter 13, and have him on there as an unsecured debt. Can they put him on there when it shows that Chapter 13 is for individual, not a business bankruptcy?

ANSWER: I'm not sure I understand your question.  Are you claiming that the individual that filed the Chapter 13 does NOT owe your father's business any money?

http://www.bklaw.com/

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QUESTION: no, I'm saying my father did refrigeration service for his restaurant, Cherry Street Grill, but the Chapter 13 that this man filed is under his personal name, not Cherry Street Grill. You would think he would have to file a Chapter 11 for business to claim work my father's Commercial Refrigeration did for his business. Just wanted to know if he can claim a business debt on his Chapter 13 bankruptcy?

Answer
If Cherry Street Grill is a separate legal entity, and it owes your father money, then it will continue to owe your father money regardless of what the individual owner does.  However, if Cherry Street Grill is merely a dba of whoever this man/owner is, then Chapter 13 is completely appropriate and your father's debt would be included as part of that Chapter 13 case because in that situation there is no legal difference between the restaurant and the individual owner.   

Without seeing the documents I can't really advise further.  

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Mark J. Markus- California Bankruptcy Attorney

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Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

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Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

  • Which Chapter to File,
  • business bankruptcy,
  • chapter 7 bankruptcy,
  • chapter 11 bankruptcy,
  • chapter 13 bankruptcy,
  • Do You Need a Lawyer to File Bankruptcy?
  • Frequently Asked Bankruptcy Questions

    Also visit our Los Angeles bankruptcy blog for interesting articles and much more.



    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

    Publications
    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

    Education/Credentials
    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

    Awards and Honors
    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

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