Legal Question in Business Law in Florida

My husband in CA holds a Promissory Installment Note issued by a now dead startup company in FL. The note says it is secured by a security agreement, and Uniform Commercial Code Financing Statement. This statemen gave his investors "a security interest in the equipment, fixtures, inventory and accounts receivable .." The company went belly-up in 2009, and although the owner was hopeful of making payments on the $1200 loaned to him, he finally issued a letter of apology to all his investors, declaring his business was dead. Do we have any options to pursue? The other investors seem to think it is water under the bridge and best left forgotten. Is there way we can deduct this as a loss on our taxes?


Asked on 4/17/11, 12:52 pm

1 Answer from Attorneys
Sanford M. Martin Sanford M. Martin, P.A.

Your options regarding collection depend on the terms of the loan agreement and the status of the borrower. If the company has no assets and is dissolved or bankrupt, your collection options are limited. If the borrower was not personally liable for the debt, he cannot be pursued for collection. You can deduct the loss on your Federal taxes as a business loan.

Read more
Answered on 4/17/11, 1:00 pm


Related Questions & Answers

More Business Law questions and answers in Florida