Legal Question in Bankruptcy in Texas

What is paid under bankruptcy Chapter 7

Will my insufficient checks be paid that I wrote on my business acct? The store is ow closed. Will my past due sales tax and 941's be paid? They are threatening prosecution on the checks in 10 days, will I be arrested? Can I file on just my business that I closed and leave my husband out of it, including our home and personal vehicles? I just want to file on the store I closed. Should we file on everything? HELP, I'M SCARED!!


Asked on 7/21/06, 2:55 pm

1 Answer from Attorneys
Rogena Atkinson The Law Offices Of R.J.Atkinson,LLC

Re: What is paid under bankruptcy Chapter 7

Dear Scared Couple,

The answers to your questions depend, at least in part, to whether your business is a dba or a separate entity, like a corporation or LLC.

A note on insufficient checks: No chapter of bankruptcy can prevent criminal prosecution under the bad check laws. The underlying debt to the individual you wrote the check to can be dischargeable, presuming no fraud was involved. Additionally, if you incurred overdraft or other fees from your bank, those are also dischargeable. However, the District Attorney can still prosecute the check writer.

941 taxes are not dischargeable in a bankruptcy. If you owe 941 taxes, both the company and you personally are likely liable to the IRS.

Please contact me at [email protected] to discuss further.

Rogena Atkinson

Attorney at Law

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Answered on 7/22/06, 9:38 am


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