Jump to Navigation

Commercial bankruptcy trustee to sell Tennessee-based tax business

Companies that file for protections under bankruptcy law are often seeking to either restructure their businesses or liquidate assets. Commercial bankruptcy trustees oversee the transactions of a business that has applied for and received such protections.

These trustees are responsible for ensuring that the business meets all of the terms it agreed to as part of the bankruptcy process. Companies unable to do so may be sold by the trustee to cover outstanding debts, which appears to be the case with a Soddy Daisy, Tennessee, tax business.

The poor health of a tax preparer allegedly led to debts that were unable to be covered through normal means, and the preparer was consequently subject to involuntary bankruptcy. Many of his clients claimed that they trusted the tax preparer with money for investments and were promised high yields on the returns. The investors allege that payments stopped coming after a time.

Decosimo and Company has been requested to handle the sale of the company, pending approval from a Chattanooga bankruptcy judge. The tax company's outstanding creditors have scheduled a meeting to be held in the Chattanooga Bankruptcy Court's basement on Jan. 8.

Business owners facing serious financial struggles need to be aware of the available protections offered under the bankruptcy code. Many facets of law govern the transactions that a bankruptcy trustee may undertake on behalf of a business, and having an experienced legal advocate on the side of the bankruptcy filer is indispensible.

Source: The Chattanoogan, "Bankruptcy Trustee Selling Jack Brown Tax Service," Dec. 11, 2012

No Comments

Leave a comment
Comment Information

What's Your Situation:

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Subscribe to This Blog's Feed Visit Our Bankruptcy Website

Our Office Location:

Richard Banks & Associates

393 Broad Street, N.W.
Cleveland, TN 37364-1515
Map & Directions

Phone: (423) 244-0009
Toll Free: (866) 596-8527
Fax: (423) 478-1175

FindLaw Network

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.